June 15, 2020

dōjō street - June week #2 Recap

dōjō street - June week #2 Recap

Monday 8

What a way to start this week - with fireworks!

The NASDAQ 100 (NDX) made a new high after breaking its ATH on Friday and Tesla, Inc. (TSLA) had it highest daily close in its history ($949.92).
The S&p 500 (SPX) recovered all of the March dump and some of its losses from February.

Beyond Meat (BYND) is managing to take advantage of the pandemic and the meat shortage narrative. They are now expanding operations internationally and revealed more partnerships later in the week.

Tuesday 9

The Nasdaq broke $10,000 for the first time ever. The momentum remained extremely bullish while clearly becoming euphoric.

We observed a rotation of the influx of money between sectors catching up on one another.

AMD had an impressive breakout +6.5%. Many Buy/Call signals were shared in the group on Monday 8.

Our calls went up from 120 to 300% overnight.

But it was NIKOLA (NKLA) (ex- VTIQ - a SPAC) that made the most noise trading at $95! Just a couple weeks ago VTIQ was trading at $10. (A deep dive on VTIQ was shared in our private group 10 days ago and our members profited largely from this move too, you can now find this review on our Instagram page following this link) That is a +300% increase since it was signaled in our group.

Wednesday 10

New highs...and a nasty inverted hammer forming on the Nasdaq.

NDX inverted hammer

It happened. Tesla closed above $1,000 less than two days after it was predicted inside the group. Even Elon Musk tweeted that "it was too high!".

On this day, we decided to hedge with some UVXY Calls on top of our SPY Puts (see below):

Thursday 11

Welp, end of the rally. NDX down 5%, SPX and DJI respectively fell 6 and 7% ...and Sony (SNE) dropped the PS5!

We knew it was due and these SPY Puts paid off nicely (+250+%):

Biggest selloff since March which caused the VIX to spike. Our UVXY Calls from the day before are now trading for +300%.

Covid-19 chart definitely is bullish, the number of cases is spiking and many states, such as Texas, that had managed to "keep the curve flat" see a major rise.

Friday 12

Index gaped up in the morning, faded during the day and bounced before the close.  

Otherwise, it seems that forex is on the move, how timely! Our exclusive and  proprietary bot had triggered some signals on Thursday, here are just a couple:

It perfectly called this reversal for example:

GPB/USD Daily chart as of June 12.

dōjō notes:

How fast can the U.S. economy recover? Personal savings are at the highest rate it has ever been. About 70% on the GDP comes from consumer spending: if the savings rate continues to be this high, it will take much longer for the economy to recover. However, it really doesn't have to take much to sparkle the fire again. It is unclear how the market will react in the upcoming week, but this past week has been truly humbling for many traders and even for fund managers.

Always manage your risk and even more especially in such times when the market is not behaving rationally and re-evaluate your positions daily!

See you next week!