Flash Buy Alert! Shotgun Coronavirus Trade

RoboStreet – March 5, 2020

Markets Find It Hard to Shake Off Virus 

Wild market swings are now becoming the daily norm for what is a highly disruptive pattern that has yet shown any signs of abating. While the number of cases of Coronavirus is declining in China, the threat of further spreading of the virus outside China has yet to indicate otherwise. 

As a result, hundreds of major conferences around the globe are being canceled and work stoppages at many factories in Italy and in South Korea are being announced. Airports are vacant with business and leisure travel being sharply curtailed. There is widespread hoarding at Costco and Walmart and serious price gouging on Amazon.com for hand sanitizer and face masks. 

The sentiment is being felt most in the bond market as yields keep crashing lower. The yield on the 10-year Treasury is down to 0.97% – a level never seen before. Even after the Fed cut short-term rates by 50 basis points, there is rising speculation they might cut the Fed Funds rate by an additional 25-50 basis points at the upcoming March 18 FOMC meeting. 

 “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

The SPY rallied up to $313 on Wednesday, just shy of the overhead resistance at $315-$320 and ran into selling pressure yesterday after the bounce from Joe Biden’s strong showing on Super Tuesday faded. The market will trade in a range between $285 and $320 for the next four weeks and a retest of $285 is looking ever more likely in the next one to two weeks. 

Gold prices are resuming their upside bias and the dollar is getting sold off hard with the Fed’s aggressive easing policy. To sum it up, the market has a lot more work to do in constructing a definitive bottom, but SYP $285 looks to be a good entry point. 

One sector that came quickly back in fashion with the resurgence of Joe Biden is the healthcare sector. As the threat of Medicare For All and the prospects for Bernie Sanders election hopes took a big psychological hit on Super Tuesday, the notion that the current healthcare landscape will remain largely intact. 

From a valuation and defensive sector standpoint, healthcare stocks are of the most attractive equities available for investors to consider as the market gropes for a bottom. 

The most effective and diversified way to gain exposure to the healthcare sector is to own shares of the Health Care Select Sector SPDR ETF (XLV). After suffering a what was a double-barreled sell-off from the rise of Bernie Sanders in the early state caucuses and the broad market decline, shares of XLV have recouped nicely. 

Trading at around $98, XLV is trading about 2 points above their 200-day moving average in what is a very constructive chart.

When looking at the top ten components in XLV, it is chock-full of those companies within the sector that have been trading best in class for 2020 and offer investors a splendid way to buy the group on sale. 

Shares of XLV trade like water, averaging around 10,000 shares traded daily with a highly liquid options chain for those the want to leverage the sector, hedge or sell covered calls against to collect some option income. 

What’s most important is that for those reading this column that want to know how best to invest and trade healthcare stocks and ETFs like XLV in the most volatile market we’ve experienced in years, then by all means, become a member of RoboInvestor today and let the power of my proprietary AI tools go right to work for you. For the past two years, we’ve closed 121 trades of which 90.08% have resulted in profits. I’d argue that kind of performance is nowhere to be found elsewhere by any other advisory service available to the retail investor. 

I only recommend the crème de la crème of blue-chip stocks and ETFs that have the largest fund flows and broad analyst coverage. If you are having a stressful time trying to manage the volatile landscape, take the route hundreds of others have chosen and join RoboInvestor where my money is invested alongside yours. I’m joined at the hip with all our members that are long the RoboInvestor Portfolio. 

Make the prudent and smart decision to get an intelligent handle on the current market correction and take me up on my offer to not only help you navigate through the coronavirus related sell-off but to position yourself in the most spring-loaded stocks and ETFs when the market finally turns higher. Do it today and let’s make some money! 

 “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

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