A Big, Bullish Market Tell?
We’re seeing strong market action once again this week. In fact, the Nasdaq Composite is now just about 10% away from its all-time highs.
Tech stocks are leading the charge off the lows!
The bulls have taken advantage buying bargains as prices rebounded. A series of continued higher relative highs and higher lows is creating positive price action — even in the face of a global pandemic.
One stock in particular flashed a unique bullish signal last week, giving my premium readers the opportunity to cash in on the impending rally using our limited risk weekly options strategy.
Let me walk you through the details…
The stock we targeted earlier this week was the semiconductor giant Intel Corp. (NADSAQ:INTC).
Several tech names have built strong rallies off their pandemic lows, and Intel is no exception. But what made this play jump out was how it reacted to earnings.
Intel topped earnings expectations late last week. But the company offered mixed guidance due to the coronavirus pandemic, sending shares lower the morning after the announcement.
The bad vibes didn’t last. After opening lower by nearly 5% last Friday, Intel rebounded to close in the green. Buyers couldn’t resist picking up these shares on sale, giving us the green light to make our bullish bet.
INTC traded sideways between $45 and $55 forming a bottom base over the course of the month of March. I also liked how the April action held its ground as the stock coiled even tighter between $55 and $60. Shares were primed and ready to spring higher!
You can now see how INTC bounced perfectly at support and is now breaking out toward its April highs.
We’ve cashed in on multiple momentum moves in INTC in the past, with 50% and 100% profits — proof this play is a smart money favorite!
Intel saw the smart money piling in yet again… and those in the know were locking in for more upside momentum moves.
I like to say that the way we trade is buy using “Lifestyle Options” that don’t need minute by minute attention. Live your life and have odds on your side using options that provide BIG payoff from modest moves in the market. They are smaller dollar limited risk plays that you can look at on a weekly basis without being chained to your computer.
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Don’t work for the markets, have the markets work for you!
Keep it In the Money,
Chart of the Day: Nasdaq Heavyweights
The Nasdaq Composite is almost back to breakeven on the year following this week’s impressive rally — and we have big tech to thank for this incredible turnaround.
When it comes the world-beating performance of the tech-heavy index, Apple, Amazon, Alphabet (Google), Microsoft, and Facebook are doing most of the heavy lifting.
“The index is a gauge weighted by market value of the more than 2,700 stocks listed on the Nasdaq Stock Market. The five tech stocks are so disproportionately large that they account for 38% of the index’s total heft,” The Wall Street Journal notes. “In the S&P 500, those same stocks make up 20% of the index.”
Even on Thursday (a down day for the markets), Facebook shares stood out with a 5% gain following a first-quarter sales beat. Even in the middle of a pandemic, these mega-cap tech stocks are finding ways to win.
If you’re trading targets are the strongest tech names on Wall Street, you’ll continue to have plenty of opportunities to pull in consistent gains in the weeks and months ahead.
— Greg Guenthner