We closed up with a new weekly high. This market looks great again, we had 1 tiny head fake where we lost the 8 week in early October but since then we’ve bounced right back. It’s pretty clear to see this trend we’ve been in since April just riding the 8 week higher. You can easily stay long until we get 1 close below that, then you want to change your mindset and take some things off and reduce leverage. As I said in Friday’s recap, this coming week is all about Thursday and the Trump/Xi meeting, nothing else matters. This can go a multitude of ways from a great new deal announced and markets rally to Trump raging on Twitter about how awful China is as we limit down. It’s hard to make a prediction with such an unpredictable guy like Trump but my best guess is we don’t make a deal, China hasn’t given in so far, why would they now? From there it is a question of do we have an extension or does Trump go Nuclear and we have another early April situation? Let’s hope for the calm and cooler heads prevail scenario.
This week’s best idea is a name that caught my eye this week with multiple trades on friday being put on as the name in the all important AI trade tries to put on a breakout from the stage 1 base it is in. We will look at a simple 2x1 ratio that can allow you a better entry and more upside profit if it plays out the right way. Best of all you get paid to place the trade mitigating some of the initial entry risk.
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