APRIL 2 - 10X MOMENTUM POT UPDATE

Starting a new free momentum POT

Important: this is not investment advice. Consult a licensed financial advisor before making any investment decision.

-

Here is my quick update for the week. Today I’m covering:

1. My view on the current market

2. My new 10X LARGE CAP WEEKLY MOMENTUM POT

3. Update on my 10X SMALL CAP WEEKLY MOMENTUM POT

Let’s start with the markets

From a technical point of view, charts look better and more promising. Almost all sectors showed improvements last week.

Also international stocks, especially European stocks showed a better look.

The best-looking index is the Nasdaq which closed 3% higher vs. the previous week:

The index is making higher highs and higher lows.

The only caveat is the volume that was below average (see red circle). Some caution is needed.

On the macro side, we are still in a very difficult environment to interpret, with some form of recession starting later this year.

For sure, credit conditions have been worsening which will impact the economy and slow down economic activity.

Finally, the amount of money/liquidity in the US economy is coming to what looks like a more logical level (see below real M2 updated till Feb 2023):

We are closing the gap. To me, that means we are getting very close to a pause in quantitative tightening and raising rates.

Key point: charts look better and promising, and the economy may take the market lower at some point. We don’t know when that will happen. So I’m increasing my exposure to the market with caution.

My new 10X LARGE CAP MOMENTUM POT

I’m starting a new 10X MOMENTUM POT (portfolio) where I’ll focus on high-quality companies above 10B in capitalization.

I’ll have no more than 5 stocks in the portfolio at any given time.

As I did for the 10X SMALL CAPS MOMENTUM POT, I am allocating 10K USD and I am not going to allocate any further cash to it.

The idea is to find stable stocks with good momentum and ride the trend for weeks or months.

I expect such stocks to provide less volatility and more predictability.

I am starting the portfolio (POT) with two stocks:

ADBE 0.00%↑ and GFS 0.00%↑

Here is what I am doing:

• Adobe (ADBE): stop buy order for 5 shares at $385.37
  If triggered, Stop-Loss order at $349.

• Global Foundries (GFS): stop buy order for 28 shares at 72.18. If triggered, Stop-Loss order at $63.97

Both belong to the technology group which is the most promising right now.

I’ll create a Google spreadsheet for this portfolio during the next week and share it here in my next weekly update.

Now let’s dive into my 10X SMALL CAPS MOMENTUM POT (for paid subscribers only)

The 3 stocks in the portfolio are behaving very well, with two of them above 49% each in a few weeks, and my last addition up 6% over the last 2 weeks.

I am adding 2 new names this week (details below).

If you are not a paid subscriber, consider joining at $5/month to support my research. An easy 7-day free trial is available.