Here is a small part of today's Daily Flashnews:
Dear Members,
On Monday, the markets moved sharply higher. Tuesday marked a mixed trading day, but weakness finally started on Wednesday. This week's news ticker clearly indicates a negative trend in the market since Tuesday, so let's stay on the sidelines.
The US AI dominance is being challenged by Chinese firms, and many new AI models have emerged, offering far better pricing. Also, we have to remember that the astro combinations are not that great for the market in the current astro cycle so volatility is expected with sharp moves after the rebound and this will keep happening so don’t invest on the bullish side, and the uncertain trend will dominate the market for the next two weeks before the new astro cycle starts as per our book.
As I mentioned earlier, my primary focus will be on healthcare tech stocks, so I will concentrate on our favorite names.
We are not particularly excited about the Magnificent Seven or large mega-cap stocks for the next few months. Diversify your portfolio in healthcare technology stocks, which are poised for significant growth in the coming years. Companies utilize AI for drug discovery, diagnosis (including blood tests or other medical tests), and image analysis (such as X-rays, MRI scans, CT scans, or the use of medical devices like ultrasound). I firmly believe that AI is a blessing for the healthcare industry, and nature wanted this technology to help humanity.
When the markets decline, everything initially falls, but then companies start forming a bottom, which creates a promising future. At this stage, my whole focus is on healthcare technology stocks. Although I like NVDA, TSLA, AVGO, and CRM, I will focus on healthcare technology stocks. I will surely buy TSLA and NVDA on weakness, keeping the longer term in mind.
On Thursday, the astro combinations are not very supportive, so I won’t recommend any significant buying in markets. Close positions in stocks, tech stocks, and keep investing in healthcare tech stocks.
After a few months, we will start buying frontline tech stocks. Also close long positions in Emerging markets and European markets. The Chinese market is expected to peak in the short term. The Indian and Chinese markets tested the short-term higher-side predicted levels. We expected Nifty to rally from 21800 to 23800, which was achieved on Tuesday, and we recommended shorting the Indian market once again.
This quarter will expire within the next three trading days, and significant pressure will be on the fund managers. An important shift is anticipated in the market. Indeed, alongside healthcare tech stocks, we are seeing crypto stocks gain significant momentum.
Housing, financial, and many other sectors will remain under pressure in the coming time.
I am not recommending healthcare or biotech ETFs because pharmaceutical stocks will also struggle, and AI healthcare stocks are relatively few. Therefore, rather than focusing on biotech/healthcare ETFs, it is better to focus on the specific story of AI healthcare stocks.
The overall trend in the market will swing both ways in the coming time. Therefore, for short-term traders, it is recommended to follow our weekly newsletter, which will provide an idea of how the market is likely to move on a weekly basis. Therefore, plan a short-term strategy before investing entirely in the market or deploying your cash after a few months.
We don’t see S&P remaining below 5551 and the NASDAQ at 19268; therefore, keep this level in mind and consider adding more aggressive long positions in the market. Yesterday we recommended buying GRRR, ALAB, TEM, RXRX, SOUN, and GRAL.
This is what we mentioned three weeks back: On Thursday, the US tech index Nasdaq tested a low of 19161 and the S&P 5522, I believe that the lower side levels have been achieved for the market, and from here there is only upside expected as our theory has never been wrong, so I will focus on the overall trend. I still believe that S&P and NASDAQ won’t remain below our important astro support level for more than three to five days. The good news is that the market tested the low on the last day of the second cycle. The bad news is that the third cycle will remain volatile but will be the shortest. SOXL is an excellent bet now. It came down from $75.00 to $16.50. Don’t miss this bet on SOXL even if the market trades volatile.
Friday also supports the US market, and it should act far better than it did on Thursday. Overall, we still see the S&P testing 15000 and the NASDAQ 43000 to 48000, or even 75000 in the next four years.
Thanks & God Bless
Mahendra Sharma