Whether you’re new to trading and investing, know a little or have been with us for a while… it doesn’t take long to realise the uniqueness of the market lies in its fluidity, volatility, and unpredictability.
It’s always MOVING… pretty much DAILY! It NEVER sleeps… and if it does, it’s never for long, just a short nap here and there. Up, down, sideways… there’s always visible movement, as well as a lot of activity and jostling for positions behind the scenes.
That’s what makes it so INTRIGUING and EXCITING! Isn’t it?
So, the big question Marcus and Keith are exploring in this week’s Trades Of The Week episode is whether the stock market has bottomed out and if fear is starting to wane?
The answer? Well, it could be YES… and it could be NO!
MARKETS
YES… the US Non-Farm Payroll indices are showing an increase in jobs which suggests there is more confidence in the market and YES the Fear & Greed Index has seen the indicator shifting from Extreme Fear to just Fear (which some see as a positive sign)… BUT…
The Fed Reserve is looking to wipe off 90 billion from their balance sheet per month with quantitative tightening (this is different to quantitative easing, check the video to find out what that is).
That has led to talk that we are heading for a recession… but it is possible we are already in one, though no one is saying so. We won’t know for sure until the end of the Second Quarter.
If this all sounds confusing – all you need to know is that the best way to navigate this situation – we believe – is by making sure we are long and short in the markets.
BUFFALO
PFIZER (PFE) we stopped out at a 1% profit.
BERRY CORPORATION (BRY) stop loss moved to lock in 1% profit.
HANOVER INSURANCE (THG) moved to break even.
It’s important to remember you do need to put your stop losses in place with our Buffalo Strategy.
NEW LONGS AND SHORTS!
INTERACTIVE BROKERS GROUP (IBKR) nice downwards trend, we have a stop-order to get us in with a nice 1:3 risk-reward ratio for this short.
CIGNA CORPORATION (CI) nice upward trend for our long.
As ever – please make sure you do your own research!
VCA
Market moving sideways means new orders being triggered… but we are sitting in some fundamentally strong companies, we’re just waiting for the market to recover – though of course, we don’t know how long that will take!
No one does – which is why you need a strategy with rules, otherwise, the emotions are going to kick in – what do I do? When do I get in? How do I invest? When do I get out with a loss? When do I get out with a profit?
All of these things you need to know in advance.
It’s crucial to your success.
NEW OPPORTUNITY!
BARRICK GOLD (GOLD) – we have been in this one for a while… and now it’s down at -20% we’re going in again! It’s kind of our “rinse n repeat” strategy!
Barrick Gold is fundamentally strong, dealing in gold and copper. It has 16 operating sites in 13 countries. It’s taken a hit because they have two sites in Russia and we all know what’s going on there (sadly).
CRYPTO
It’s been up and down, up and down and literally just going sideways.
BITCOIN is oscillating sideways but there is a bit of confidence now that the demand zone is holding up which means buyers are still looking to purchase at around the $29K mark.
The thing to remember is – Bitcoin dictates what the overall market is doing, so with Bitcoin moving sideways, we’re seeing a lot of the other coins move sideways too.
In general, crypto Whales are still accumulating crypto, which is good… though 46,000 people have reported losing more than $1 billion to crypto scammers since the beginning of 2021, which is obviously not good!
So please make sure you do your research because even Terra Luna took us by surprise.
HOTTEST COIN OF THE WEEK!
CHAINLINK (LINKUSDT) is down by -79%! We believe Chainlink is going to be a very strong coin for the future as it is involved in something called “interoperability” which allows the blockchains to communicate with each other.
Chainlink is in the Top 10 and focuses on taking real-world data and placing it onto the blockchain so that data can be utilised. We believe it to be a really strong opportunity for investors.
But, as ever, please make sure you do your own research.
RESULTS
STOCK MARKET
Buffalo: +63% on total portfolio since August 2020, not too shabby!
VCA: +1025% on money invested
CRYPTO
CCA: +1510% on money invested
Small-Cap: 4,320% on money invested
