Friday, 14 June 2024

How This Week Changed Markets

reflecting on this week’s moves
 
   
     
   
 
JUNE 14, 2024
   
SMITH'S TAKE
How This Week Changed Markets
 

Just two days ago, I suggested that we needed to hold our breath and wait for a series of crucial economic reports — CPI, PPI, oil, bonds and the much-anticipated Fed decision on interest rates.

Now that the dust has settled, let's dive into what we've seen and what it might mean for the next stage of the market.

— Geof Smith
 
Dear Reader… All I need is a move of around 1% at ANY point within the next two weeks…

The stock can go up, down, or nowhere over that two week period…

So, there’s no need to predict where the stock is ultimately going to end up…

And I could still see cash automatically deposited in my account!


Click here for details… My next trade is already out!
— Sincerely, Nate Tucci
SCOTT WELSH’S TICKER TALES
Friday Great Value Trade (BB)
 

Speaking of meme stocks–isn’t everybody the past few weeks?--remember BlackBerry?

Back in the day, the little devices were the rage of Wall Street and everywhere else. The internet-accessible phone-like things were so in-demand and addictive, they were called…well, you know what they were called. (Hint: it rhymes with BlackBerry).

Then the company fell behind better companies with better devices and disappeared from view.

Many probably don’t even know the company still exists.

But it does. 

And in 2020, it fell down to the long-term lower Band and was far below “fair value” (the 800 SMA). 

Here’s the chart:

 
 

In March 2020, the price was $3.85. 

By December 2020, it made it to the 800 simple moving average/”fair value” at $8.00.

In a moment of meme insanity, BB actually went above $28.

Deep Value stocks don’t always jump right back to “fair value”. Sometimes it takes a while.

But sometimes they do jump back quickly. 

And BB was an example of that.


Happy trading,
— Scott Welsh

P.S. As a reminder, these plays are based on my longer-term Weinstein Stage Analysis method. The charts above use weekly candles and a 30 week simple moving average. For details on this method, see my explanation on this Ask The Pros episode starting at timestamp 20:45.
   
 

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