Flash Alert! Big Pharma Readies COVID-19 Vaccine Launch

May 7, 2020
By Vlad Karpel

RoboStreet – May 7, 2020

Bumping Up Against Resistance…Again

Rising hopes of the economy getting back on good footing by mid-summer has the broad market making another attempt at challenging overhead resistance for the SPY at the $290-$295 level where the bearish camp is putting up a good fight. The rally back towards the psychological $300 mark for SPY is being fueled by the cloud kings: Microsoft, Google, Facebook, Amazon.com, and Apple. 

Healthcare has also been a solid catalyst for the rally and when added to the tech sector, both account for 40% of the S&P’s total weighting. It’s a tale of two markets because most of the other 9 sectors are stuck in neutral, with most having given back some recent gains. 

A look at the one-year chart for SPY shows the 20-day moving average in blue supporting the potential for a move up to $300 where a now-downward sloping 200-day moving average comes into play. Plus, going back to October 2019 and prior months shows how significant the $300 level will be to punching through if possible.

Under this scenario, it is historically to the advantage that investors stick with what is working when the time comes to build a case for an upside breakout. With the market and investment community spending a lot of energy on the topic of immunization and treatment for COVID-19, it argues well to stay invested in the healthcare sector.


 “I’m investing my own money in each and every stock as my AI platform identifies.”

And remember we’re not talking about day-trading here.  I’m looking for 50-100% gains inside of the next 3 months, so my weekly updates are timely enough for you to act.

Click Here – To See Where I Put My RoboInvestor Money

As a sector play, investors should consider owning the Health Care Select Sector SPDR ETF (XLV) for what is shaping up to be a move to new all-time highs in the making. At its current price of $100, it won’t require much to trade up through the lifetime high of $105.08 and extend that move. Our AI-powered Tradespoon Seasonal Chart rates XLV strongly, with three out of four probability readings “higher” for the next 20,40 and 50-day periods. 

The composition of XLV is made up of the biggest and arguably the best names in the industry, most of which are trading up to or near their respective highs. As a sector that is resistant to recessionary pressures, fund flows into healthcare stocks are bullish and continue to attract new money on an almost daily basis. 

Within the top 10 stocks that make up XLV is Pfizer Inc. (PFE) sitting in the number three position. As a Dow component and mega-pharma leader, the stock made a big move off the March 23 low of $28 to $38 on news the company is showing good progress on a vaccine for COVID-19. The rally back to $38 has the stock clearing its 200-day moving average that sets up the shares for trading higher in the near-term where it could challenge and take out the 52-week high of $44.56. 

When applying our Seasonal Chart to Pfizer, we see a split pattern of lower and higher readings for the next 50 days out, where the next 10 days the stock looks to consolidate, followed by a resumption of the uptrend going out 20 days, followed by some further consolidation and then a higher move going out a couple of months. 

This is where our RoboInvestor advisory service really shines. We’ve been harnessing the power of AI to construct a portfolio of stocks and ETFs that has a Winning Trades Percentage of 87.59%. Of the 137 trades recommended in RoboInvestor, 120 have generated profits with the 17 losing trades managing small losses. 

For those early RoboInvestor members that participated in every trade since inception using $100,000 as a hypothetical amount of initial capital, they’ve realized over a 28% gain or $28,475 in real profits. 

The consistency and diversification utilized within the RoboInvestor Portfolio are what makes us so successful when taking into account the 20% correction is the fourth quarter of 2018 and the 34% correction this year.  

At present, the RoboInvestor Portfolio is long 11 stocks and ETFs with blue-chip stocks like BlackRock Inc. (BLK), Dominion Energy (D), Abbott Labs (ABT) and Lockheed Martin (LMT) leading the way for us. We can easily own up to 20 or more positions, but we’ve been more apt to maintain a more narrowly focused portfolio at this time, which is also a reflection of the current profile of the market itself. 

With all the uncertainty swirling about the trading landscape and fluid headlines that heavily influence all the high-frequency trading which accounts for over 70% of daily volume, I honestly don’t know how investors can thrive without the power of AI in their corner as a workhorse for stock and ETF selection. 

I invite all readers of this column to join me in taking on the current market landscape with my custom-tailored AI platform. I put my investment capital in on every trade with yours. I share directly in the risk and reward of every trade recommended. I wouldn’t have it any other way. 

Anyone can make paper recommendations, but if their own money is involved with every trade, there is a whole different level of conviction with each and every recommendation. I stand by my commitment both in mind and money and sincerely hope you’ll put me and my AI tools to the test. Let’s build some real wealth in 2020! 

 “I’m investing my own money in each and every stock as my AI platform identifies.”

And remember we’re not talking about day-trading here.  I’m looking for 50-100% gains inside of the next 3 months, so my weekly updates are timely enough for you to act.

Click Here – To See Where I Put My RoboInvestor Money

*Please note: RoboStreet is part of your free subscription service. It is not included in any paid Tradespoon subscription service. Vlad Karpel only trades his own personal money in paid subscription services.  If you are a paid subscriber, please review your Premium Member Picks, ActiveTrader, MonthlyTrader, or RoboInvestor recommendations. If you are interested in receiving Vlad’s personal picks, please click here.

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