Stock Market Update 5/23/2021
Will the US Stock Market crash? Could stock news, or a stock market update would tell you that in advance, no no one knows. The Dow Jones industrial average is close to it’s all time high so no matter what trading strategy keep it simple.
It would not surprise me if we do see a 10% pullback in the second half of this year. That would put the Dow Jones around its 200-day simple moving average. We could see news to push it no matter if it’s about inflation, the fed printing money, the semiconductor shortage you name it. The Q’s look toppy, and we could see a 20% pullback in $QQQ before it finds support and makes a new trading range. The semiconductor etf SHM looks the same. We would be naïve to think the market can continue to make new highs without healthy pullbacks on its way.
For biotech's index $XBI does not look healthy as it pulled back below its 200-day moving average and could easily see a 20% pullback to the $100 dollar area. Overall looking at the market and the charts I am not very bullish for the remainder of the year. I do not mind pullbacks because they bring opportunity to get into great companies at a great price. Remember you must be prepared for when these opportunities come around, so have some dry powder. I am always adding to core positions every month and I only own positions that if the market had a twenty percent pullback, I would double down on them. Always keep funds ready to do so.
As far as leveraged ETF’s go $WEBL which is the Dow Jones internet etf is starting to look bearish. Highs are getting lower and the inverse ETF version of it $WEBS chart is starting to look bullish. This is a leveraged ETF so you could see a 40 percent pullback on this one until it finds support. If you own it, you should ask yourself if you can stomach the drop and buy more when it hits support levels.
Dividend pick for next week would be $AGNC, I love the chart which says enough to me about the company. They pay a monthly dividend that is 7.8% a year. I do not own this stock, but I would be a buyer with an ex-dividend date of 5/27/2021.
Citi Group $C, Epam Systems $EPAM, AGNC investment Corp $AGNC all have nice looking breakout charts and $AGNC has a monthly dividend of 7.8 percent with and ex-dividend date of 5/27/2021 coming up.
We see opportunities in the pullback of stocks like Exxon Mobile $XOM, Comcast $CMCSA, Chevron $CVX, Alcoa $AA, Bunge LTD $BG. Just always do your research before you enter anything. Know why you are entering and have a plan for your position.
Besides that, I am always swing trading leveraged etf’s based on the charts which now I am being more patient by the way they are looking. I like living a simple lifestyle that include managing my money with the basic simple concepts. Just remember do not over complicate your trading or portfolio, keep it simple stupid. See Investing Money For Beginners
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