Chaim Siegel

Rip Or Plummet On Monday? Are You Ready?

We’ve been waiting long enough for this Trump-Xi meeting at G-20 which starts tomorrow, Friday and ends Saturday.

We’re going to get news out over the weekend that the meeting on trade either:
1) Came to an agreement to cut tariffs and play nice, or
2) Have the makings of an agreement in the future with no change today, or
3) Continue to disagree with no progress.

Our bias leans us to the second option.

But if we get option 1 the stock market can rip higher by a huge number, maybe 5% on Monday.

If we get option 3 the market can just as easily plunge 5% on Monday.

There is a huge range of outcomes that we need to prepare for. This is a greatly anticipated event that shouldn’t be taken for granted. Large investment funds will likely chase the trend driving stock market follow through either way.

The trade war has slowed economic momentum causing a very weak Q3 earnings season. We told subscribers to hedge out for the earnings season which helped avoid risk.

A positive conclusion of the trade war could mean a forthcoming rally, but no changes could cause a stock market plummet. We plan to respect and follow the market whichever way the event decides.

We’re wishing you success.

Where Are We With Tech Stocks?

We wanted to give a quick update how we’re seeing things in tech stocks and what we see coming.

We told subscribers to completely hedge throughout October and most of November except to be long for the midterm election rally day. Then we got back to hedged-out. We did not want market exposure. We still don’t.

This earnings season confirmed our concern we had ahead of time that earnings growth rates could slow.

We hear the world trying to pick bottoms but I think it’s more important to respect the slowdown in revenues. These are typically not one quarter events.

We’re telling subscribers to remain hedged and reduce position sizes to avoid risk. We do find opportunities for earnings but the risk/reward for earnings events is also not perfect right now.

It’s a good time to stay cautious into year end.

Wishing you a happy Thanksgiving and successful trading.

We also invite you to try our service and chat with a 14 day no risk trial. Kick the tires. Get into chat and let us help you make money in tech stocks.

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All investments have many risks and can lose principal in the short and long term. The information provided is for information purposes only and can be wrong. By reading this you agree, understand and accept that you take upon yourself all responsibility for all of your investment decisions and to do your own work and hold Elazar Advisors, LLC, and their related parties harmless. All model portfolio trades are hypothetical to show direction, conviction and timing. Performance excludes all relevant transaction costs. Elazar and its employees do not take individual stock positions to avoid front running and other potential customer related issues. Elazar may trade in index futures.