This week's watch-list is presented below. Instead of removing the weaker stocks from last week's list I have kept them in the watch-list but have labeled them "sell". I have done this for the sake of continuity, so that traders do not have to refer to last week's watch-list to see the stocks that have been dropped. If these stocks continue to under-perform, I will remove them from the watch-list the following week.
The broad markets rolled over hard to end last week after the Federal reserve failed to telegraph an aggressive interest rate cutting strategy moving forward. This was exacerbated by further escalation in the trade war between the US and China. The inverse ETF trade that I discussed last week broke out but has given back a little this morning with markets opening substantially higher. The trade is still very much in play and I think this provides a nice entry for those wanting a safe entry on this trade.
Gold also popped hard on Friday, sending most of the gold stocks on our watch-list soaring higher. Many of these are now labeled "buy" and the stops could be placed below Friday's breakout or below the last swing low.
Here is the revised watch-list:
Have a great week!