MARCH 19TH 10X MOMENTUM POT UPDATE

A potential new buy and what I am doing

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

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Quick update for a very intense week in the markets with multiple news regarding the stability of the banking and credit system.

The upcoming week will be very interesting as the FED will decide about the entity of the next interest rate increase.

I expect a more prudent stance from the FED because of what is happening in the banking system. Let’s see what they’ll decide and how the banking system will react next week.

The SP500 is below its 200-day (40-week) moving average and if it does not recover soon it may signal that more downside may materialize, resuming the downtrend that started more than 12 months ago.

On the other hand, last week there was strong demand in the technology sector. The chart of this sector looks very promising. See below what a strong engulfing candle on high volume we had (the sector closed +5.6% vs. the previous week):

Also, the Communications sector did very well.

My belief is that the Technology sector will stay strong no matter what as secular trends are at play: artificial intelligence, robotics, automation, and software, to name a few.

Nonetheless, I’d be cautious next week, waiting for a confirmation of the trend to start before becoming more aggressive in capital allocation.

I am ready with a selection of the most promising stocks going forward.

Now to my momentum portfolio (POT).

I have two open positions that are up 26% on average and I’m 73% in cash, waiting for the right time to invest.

I’m raising the stop loss of one of the positions. Details below.

Also, I am playing this week as follows. I’m creating an order for a very promising stock in the software sector. I’m creating an order that will trigger only if the stock goes up.

Next week the market may head south and in that case, I don’t want my order to be triggered.

On the other hand, if the FED is dovish and news from the Bank crisis are good, we may have a market that goes up instead.

In any case, I’ll be ready. Below are all the details.