Market Alert! Vlad’s “V-Bottom” Prediction

RoboStreet – February 6, 2020

Can V-Shaped Recovery Sustain Its Gains

Following some reassuring remarks from U.S. healthcare officials that the risk of the Coronavirus spreading in the U.S. was low, markets caught a strong bid and have been on a four-day run that has erased all the recent losses and taken Dow, S&P, and Nasdaq to new all-time highs.

SPY has cleared resistance at $330

The strength of the rally has caught most investors off guard as the correction that lasts all of three days saw the indexes give back less than 3%, which was thought to be not enough to alleviate the overbought condition. Now that SPY has cleared resistance at $330, some follow-on buying has taken the index to a fresh high of $334, with many market participants chasing the breakout.

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SPY will continue to trade in a sideways range, between 320 and 335 levels

The market has been volatile and closed the gap as hope for finding a vaccine for Coronavirus emerged. The question on everyone’s mind remains: if this is “V” shape recovery or continuation of the range-bound market. I expect market volatility to persist.  SPY will continue to trade in a sideways range, between 320 and 335 levels. 

It is just too early for the market to make new highs

It is just too early for the market to make new highs and I expect the next two weeks for the market to trade in a consolidation phase as QQQ already exhibits signs of exhaustion per negative action in the VanEck Vector Semiconductor ETF (SMH). The market outlook for the next four weeks remains unchanged. I expect an additional 1-2% correction in the next two weeks, to retest the 320-325 level, and the bull trend to resume by the end of February early March.

Dollar rally to a three-month high

The coronavirus scare put a huge bid under the dollar, which has rallied to a three-month high. Shares of the U.S Dollar Index (DXY) are trading right up against a technical resistance level that might well invite some near-term profit-taking.

At $1,570/troy ounce, gold is putting on the right side of a double-bottom

Conversely, gold prices have come in somewhat with the rally in the greenback, giving buyers a chance to buy a dip. At $1,570/troy ounce, the yellow metal is putting on the right side of a double-bottom, higher-low formation that typically leads to fresh highs.

RoboInvestor Portfolio shows a bullish “B” grade for Gold SPDR (ETF)

In looking at the Gold SPDR (ETF) that we actively invest in within the RoboInvestor Portfolio, our Stock Forecast Toolbox shows a bullish “B” grade for the stock and a Predicted Resistance level of $161.76. At its current price of $147.52 – that’s a nice move higher forecasted for the next few weeks ahead.

Our winnings trade percentage is 89.92% – a lifetime high

For our RoboInvestor Portfolio, I’ve been having our members book a string of fat profits the past two weeks, according to our discipline and adhering to our AI indicators that tell us when to buy in and when to sell out. I’m very pleased to report that our winnings trade percentage is 89.92% – a lifetime high.

We still have 15 long positions that are piling up the gains

We still have 15 long positions that are piling up the gains in names like Lockheed Martin (LMT), JP Morgan (JPM), HP Inc. (HPQ) and BlackRock Inc. (BLK). And I’ll be scaling out of more positions as the market climbs the wall a worry from investors that are fearing they are missing out. It’s an impressive rally for sure, but one that I think will give back some of the current gains just as quickly as volatility remains elevated.

To be sure to catch the exaggerated swings in the market, take a big step towards increasing your winnings percentage with every trade while reducing risk dramatically by becoming a RoboInvestor. Invest alongside me and have your investment capital working full time and more intelligently than ever before.

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 “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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