Biotech stocks are coming back strongly
Dear Members,
We were able to find perfect bottom in Biotech, tech and Biotech will keep helping NASDAQ. We would like to see Banks start supporting market which shall happen from August Third week.
Hedging trade - Stay away from European market, and emerging markets for the short period. Keep adding Nasdaq, Russell, and if you like to sell as hedging trade then DOW & S&P will be good sell around higher side.
We see S&P holding 2151 and 2136 level so wait for this level to come to add more positions. Thursday and Friday will be interesting day for market as markets will bounce back from lower side. In our astro cycle theory we see only 2.5% on lower sides and 15% higher side from current levels by the end of this year.
S&P is struggling to move higher, at this stage remain short term trader in market rather than positional trader for overnight. Medium and longer term traders can keep accumulating positions on lower sides. Buy S&P at 2151, 2136 and 2117 and higher side 2205 should be taken as profit booking opportunity in stocks, but we are not recommending shorts.
Biotech stocks are coming back strongly and many stocks will announce earning in the next two weeks. We are strongly recommending to stay long Biotech index, stay long in Chinese market but stay from most of other markets.
On Tuesday AMSG, BECN, CALD, CARB, EA, HRS, FMI, and CENT will be announcing earning. From this list we already recommended following stocks AMSG, BECN, CARB, EA, FMI and CALD. AMSG and BECN are our favorite and both these stocks can move up big so get in to both these stocks. One can buy short term call options or stocks and we are sure by Wednesday you will earn money on your investment by buying most of these stocks.
Stay away from energy stocks, great time to build up aggressive positions in mining 3x bear etf DUST, and sell NUGT/JNUG bull etf. Commodities will once again start trading negative for the medium term.
We don’t see S&P remaining below 2151 level for the longer period and in the worst case scenario S&P may test 2117, and higher side 2501 by the end of this year.....
Thanks & God Bless Mahendra Sharma
Monday 5.00 PM, Santa Barbara