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RoboStreet – June 20, 2019
Market Melt-Up Feeding IPO Frenzy
Yesterday’s trading session saw the S&P 500 hit a new all-time intraday high of 2,956 fueled by a very dovish Fed policy statement and optimism about progress on trade with China at the upcoming G20 Summit slated for late next week. Strong earnings from Adobe Systems (ADBE) and Oracle Corp. (ORCL) also boosted investor sentiment to where those stocks and that of several other leading software stocks his fresh all-time highs as well.
My indicators show the market to be overbought on a short-term basis and due for some consolidation. The animal spirits have a tendency to be extreme when bullish headlines and algorithm-based program trading converge. Buying and selling can get extreme over a matter of just a few days and that would be the case presently as we head into the weekend.
Next week, all eyes will be on how renewed talks between President Trump and China’s President Xi unfold. At this point, quite anything is possible, however, the market is likely pricing in more than what will actually come of this gathering in Osaka Japan. If the meeting does not go well and Trump slaps tariffs on the $300+ billion of Chinese imports, equity markets will most certainly pull back. Major support for the S&P sits at 2,780 or 5.6% below its current level and where the 200-day m.a. comes into play.
“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.
I’ve been using the recent strength in the market during the month of June to book numerous profits for our RoboInvestor Portfolio. In just the past two weeks, we rang the register in Whirlpool Corp. (WHR), Materials Select Sector SPDR ETF (XLB), Walmart Inc. (WMT), Applied Materials (AMAT), SPDR S&P Homebuilders ETF (XHB), Van Eck Gold Miners ETF (GDX) and Medtronic PLC (MDT).
A $10,000 investment into each stock and ETF, or $70,000 would have generated $4,203 in cash gains or 6.00% in a market where the S&P advanced 3.5% over the same time period. That’s 41.6% better performance than the market’s benchmark index utilizing blue-chip stocks and ETFs. And we’re still long PayPal Holdings (PYPL), Microsoft (MSFT), Amazon.com (AMZN) and Honeywell International (HON) that are hitting new all-time highs.
We’re winning on 94.20% of all our closed trades going back 15 months with an average gain of 4.87% on each trade. That’s an enviable track record and is only possible with the power of Tradespoon’s AI platform working 24/7 for your portfolio in a manner that produces the kind of consistent profits that create real wealth while managing risk in a highly volatile market
Today, I want to highlight how well the stock market has absorbed the string of sizzling IPO unicorns that have been center stage for the past several weeks and months. The string of high-profile companies going public has rivaled that of the dot com era because of the size of the deals dwarfs those of the early Internet days.
2019 will be the year remembered for when the unicorn IPO stole the show with public offerings with sky high valuations. After going public, Lyft Inc. (LYFT) is valued at $18 billion, Pinterest Inc. (PINS) at $15 billion Zoom Video (ZM) at $28 billion, Tencent Music (TME) at $24 billion, Beyond Meat (BYND) at $10 billion, PagerDuty Inc. (PD) at $4 billion and this week’s star IPO Slack Technologies (WORK) valued at $21 billion.
Among this star-studded field, my favorite is Uber Technologies (UBER), the largest ride-hailing service in the world that is rapidly expanding its business model to include food delivery, freight delivery, and healthcare transport. CEO Dara Khosrowshahi led Expedia Group (EXPE) to phenomenal success in the past decade, rewarding shareholders with an eight-fold move in the stock.
Source: The Verge
UBER is moving rapidly into international markets and is considered a front runner for autonomous freight delivery. No less than 15 Wall Street analysts put a Buy Rating on the stock after the quiet period expired with an average target price of $55.
The company has a top-shelf list of key investors that include Blackrock, Softbank, Google, Toyota and PayPal along with venture capital firm Benchmark Capital and after launching its IPO on May 10 at $45, the initial market cap was $75.5 billion. Shares of UBER have gotten off to a choppy start and are trading between $42-$45, but building a nice base from which to move higher off of.
My Tradespoon Stock Forecast Toolbox shows initial resistance for the stock to be in the mid-$47 area, where if taken out will put the stock in a new uptrend. But it’s vital that investors don’t get caught in a “bull trap” where a false breakout occurs, sucking in traders and investors seeking higher-highs. This is where my AI tools do their best work and if one is going to trade the unicorn IPOs in the weeks and months ahead, then doing so with artificial intelligence is not just prudent, it’s smart.
If winning 94% of the time in the stock market is important – and it should be – then get on board with joining RoboInvestor today. It’s a small monetary commitment for a track record that is producing big returns. Sorting between the highs and lows of rapid sector rotation and the stocks and ETFs within takes more than human skill in today’s market landscape dominated by high-frequency trading firms and algo-driven prop shops.
Take action and put RoboInvestor to work and put my many years of AI software development at the forefront of your stock and ETF selection process. It’s working for hundreds of subscribers and is only getting better and smarter each and every day.
“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.
*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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