The QQQQ opened 2.5% lower today along with the rest of indices – a 30 day low. This is not a good sign to say the least. For the time being I’m recommending you sell whatever shares you’re holding for QQQQ & ATVI.
There are a lot of reasons why but overall the main one, in my opinion, is that the stock market needs to cool off. Only time will tell if this was a cool off or a major shift.
Today the FED will meet to discuss whether or not they will raise the interest rates. Based on the amount of stocks going up today — it looks like the market may already know the answer. Answer being – they will decide to keep the interest rates the same.
We’ll see how this affects our current 2 open positions – QQQQ & ATVI. I’m also considering buying IDC, but we’ll wait to hear from the FED and see how the market reacts.
Stay tuned!
Activision’s – ATVI - went up quite a bit last week. I don’t recommend buying anymore unless you already did that last week. Just hold for now and if it goes below $12 then we will strongly consider selling it. In the meantime though I still think it’s headed for higher ground.
IDC - Interactive Data Corp
Meanwhile there’s another stock that is looking like it’s heading up – IDC. We’re going to be watching it today and if possible even buy it. The charts are looking great. It’s down from $25 in June to $22.50 today.
QQQQ - It’s still at $39.75!
It’s difficult to gauge what direction QQQQ and the overall markets want to move. In the last 5 trading days the QQQQ stock has stayed at almost the same $39.75. This usually means both buyers and sellers are battling it out and we’ll know the winner soon – hopefully. At this point pretty much any bit of good or bad news can sway the market. Be careful. Don’t buy, if you’re holding don’t sell unless it starts to head down.
Normally if one or even two stocks are headed down then it’s not a cause for concern. But today almost all of the stocks and the overall market seems to be showing a bearish signal. This can mean one thing and that is that for the short term a lot of these stocks are headed down including the overall market.
That’s fine. They’ve had a good run for the past few weeks and some of them months, so it seems appropriate that they need to cool down and establish support before they head higher.
I’m very close to recommending that you sell the remaining 2 stocks that we’re holding. But I’ll wait until tomorrow to make that decision.
How Was Your Trade?
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We had a good run with Netflix, not so much with Apple.
Netflix – Sell
On July 30 we recommend Netflix and since then it’s gone up from $42.50 to $44.50 – about 4% in a few days. Not bad. We’ll sell it for now and then once it’s gone down significantly we’ll buy it again.
Apple – Sell
We also recommend Apple and since then it’s gone from $161.00 to $165.00 – about 2.5% in a few days. Not quite what we were hoping for but not too bad. Same as above we’ll sell it for now and then once it’s gone down we’ll buy it when it’s low.
QQQQ – Hold
The charts say it’s overbought so it might be a good time to sell but it may also go up on a wave of good news. So for the time being don’t buy, don’t sell. Hold if you have it.
ATVI – Buy (if you haven’t already bought it!)
We also recommend ATVI last Thursday – July 30th. ATVI was looking a bit iffy until today when it shot up 3.5% in one day. It’s looking like it’s headed up so I’d recommend buying but only for a few more days. After that it may be overbought.
Have a great Tuesday.
There are about 3 to 4 stocks that are currently in play, but that doesn’t mean there aren’t any other stocks. Here is a list of stocks that I like but are not ready yet so we’ll leave them on our Watch List (for now!).
Watch List
SBUX – Starbucks
COST – Costco Wholesale Corp
ELNK – Earthlink, Inc
VDE – Vanguard Energy Vipers
If you see a growing company with good trading volume that you think should be included then send us an email and we’ll consider it.
The stocks bounced back faster then expected on a wave of great news. If you were thinking about buying any of these then this might be a good time to start.
Also notice we’ve added in a stock ticker on the right side, which will allow you to track the stocks. I’ll be tracking them closely to see how they perform and when to sell them.
Last sunday I recommended you sell Apple, hold / don’t buy Netflix and we were unknown for ATVI Activision Blizzard.
Netflix Update – SELL NFLX
I hope you listened. Netflix was initially at $45. It climbed a little higher up to $47.50 but now it’s heading down as expected. The last price was at $42.20 saving you about 7%. I think it will head down even more.
Apple Update – SELL / Monitor From Sideline AAPL
Apple was close to $153.00 when I recommend you sell. It climbed to $160.00. For the time being I’m moving it to the sideline — meaning neither buy nor sell. I still thinks its overbought but it still may climb higher. So I won’t recommend Apple atleast until the stock price has cooled off a bit (stock price heads down to establish support).
Activision Blizzard – SELL ATVI
I was still evaluating the ATVI stock last week because it seemed sort of in a midway. It was at $12 and now it’s down to $11.54 – down 4%. So my current recommendation is Sell but watch closely because I think in the next few days once it’s come down a little bit more I may consider updating it to buy. For now SELL.
QQQQ – SELL / Monitor From Sideline
The QQQQ is a list of Nasdaq’s 100 largest domestic and international companies. Currently the charts show that the stock is overbought and that it might head down to cool off. So for the time being don’t buy.
Lastly we had some minor issues with one of our pages being infected with malware so we’re in the process of cleaning it up and increasing our security.
Stay tuned!
It’s been a while since our last stock pick. So I’ve added a list of a few stocks that I think represent stocks that have good potential for growth and profit — even through the recession.
Apple – AAPL – SELL
Currently Apple has reached has very close to their 11 month high at $151.75. If you’re holding it then sell. If you’re thinking about buying then wait atleast it has had time to cool down and drop in price.
Netflix – NFLX – HOLD / SELL
Netflix is also rising up. They’re close to their 3 month high at $44.14 — it could go higher or go lower. If you’re holding it then watch is closely. If you’re thinking about buying then I would consider waiting until the price heads lower.
Activision Blizzard – ATVI – Researching / Unknown (for now)
I remember in high school one of the most popular games was Blizzard’s Starcraft I another game also by blizzard Warcraft. Blizzard has been creating great games but I will have to find out more about Activision. So for time being stay tuned.