Coronavirus Market Update

Part V… Shaped Recovery

Sorry to everyone who has been a regular reader of this blog. I recently welcomed a new baby into our home. And by welcomed, I mean we had a baby and took it home with us from the hospital.

Regardless, from the last time we spoke, until now, markets have only been beaming straight towards the heavens. One of my favorite past times has been watching every financial news channel in existence screaming about retesting the lows. And the market persists.

One of the things to remember about the market as it were- it can remain irrational far longer than you can remain solvent. Also, the market will always do what will cause maximum pain. Everyone and their mother was looking for a drawdown, and since then the nasdaq has rallied more than 20%

In addition to the 20% rally, the MACD weekly indicators have only as of the last couple of days made a positive bullish cross- meaning there is more bullishness to continue. The bet here is on upside, not the downside.

This is of course barring any jarring from politicians, which I will admit, is altogether too present nowadays. Any rhetoric that has to do with trade and causes a pullback should be bought.

There is positive news out there, and focus on the DATA. Your MACD crosses need to be observed. If the majority of your portfolio falls within the Nasdaq, watch the movements in the moving averages. There is no need to get fancy here. Staying alive is the key.

I’m going to try to continue making these short blogs as often as possible, to help anyone who’s on this journey solo.

Today I pulled back my positions in the 4 stocks that comprised 90% of my portfolio, and added NFLX, SHOP, NVDA, NOW, FB, and SQ. I still have faith in the big 4, I just want a little more beta. (For those wondering, the beta of the new portfolio is 1.10).

Good luck and stay safe out there. And don’t forget- the market is not the economy.

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