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As tech stocks continue to surge, while the S&P 500 and the general economy lags behind, it is important to select the right sectors and stocks to invest in.

Also, as the US gradually opens its economy and talks of a new potential vaccine surfaces, will these be able to boost the V-shaped recovery of the stock market?

And more importantly, which specific stocks are the best to invest in?

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Market Overview

While most of the markets are sideways or in weak trends, we see that a few things continue to remain strong, such as Gold, the US dollar, and the NASDAQ.

 

Upcoming News for the Week

 

How is the Economy Faring?

There seems to be a large disparity between various sectors, and last week several famous fund manager like David Tepper and Stanly Druckenmiller said that they feel the market is too expensive at current levels.

 

Some good news on the virus front, with a potential vaccine being found. It might still take months before we see an end product, but at least this gives us some hope.

 

As the US gradually reopens its economy, so far we have not seem any sharp spike in cases, so that is a good sign. However, since there is a delay between infections and testing, only time will tell.

 

Is Gold Starting a New Super Trend?

We have been getting some solid buy signals for Gold, and the charts show that it has potential to break new highs.

 

NASDAQ vs. S&P 500

There is a curious divergence on the NASDAQ versus the S&P 500, which is due to the fact that tech stocks have fared much better and recovered faster than the rest of the economy.

Since this divergence could persist or even widen, it makes sense that we should continue focusing our investments in tech counters.

Since my visit to Silicon Valley and various offices there in 2018, I have been very bullish on the tech sector.

Choosing the Right Sectors to Invest In

Looking at where the big money is flowing, Warren Buffett is selling off the airlines and financial stocks, while the Saudi sovereign fund is buying up huge chunks of US stocks.

 

Best Tech Stocks to Invest In

Here is the shopping list of my favourite tech stocks, which I plan to buy and hold for the long-term.

  • Alibaba (BABA)
  • Tesla (TSLA)
  • VISA (V)
  • Mastercard (MA)
  • Facebook (FB)
  • Amazon (AMZN)
  • Mircrosoft (MSFT)
  • Apple (AAPL)
  • Google (GOOG)
  • Disney (DIS)
  • Nvidia (NVDA)
  • Shopify (SHOP)
  • Paypal (PYPL)
  • Salesforce (CRM)

 

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Here is some feedback from our students:

“Spencer has simplified a system which allow us to identify trade opportunities from the chart. The step by step identifying the market and setups helps making technical analysis simpler to understand.” – Siong Boon

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See you on the inside! 🍻

After seeing negative prices in Crude Oil futures, will oil prices stay depressed, or will they recover any time soon?

With stock markets unclear, and the US dollar fluctuating wildly, is Gold a good long-term investment now?

Join our FREE Telegram channel for daily trading tips:
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Market Overview

Looking at the “Daily Trend Analysis” on our Telegram channel, we can see that the most bullish counters are Gold (XAUUSD) and the US Dollar Index (USDIDX), whereas the most bearish counters are Brent (BCOUSD) and Crude Oil (WTIUSD).

The stock markets are pretty mixed, with most indices either being in a weak bear trend, or ranging.

 

Can Gold Hit $3000?

According to analysts from the Bank of America, they now have an 18-month target of $3000 for Gold, which seems pretty bullish, considering we have not even cleared $2000 yet.

Normally, it is quite rare for the USD and Gold to trend strongly in the same direction, but we are seeing it now.

In the short/medium-term, since USD is a reserve currency, it is in demand when liquidity dries up, whoever with the aggressive money printing, it might decline in the long run.

As proposed by Ray Dalio, we are nearing the end of a 75-year debt cycle, which could see massive deleveraging and devaluation of the US Dollar. If that happens, then it will definitely be bullish for Gold.

This is the reason I have been actively adding Gold to my long-term portfolio.

 

Normally, commodities tend to lag Gold, and eventually “catch up” once inflation kicks in, however this time demand is at an all-time low.

 

We have had great success buying the dips on Gold, and our most recent trading positions are already in the money. 💰😎🔥

Will continue to hold for more upside.

 

How Long Will Oil Stay Cheap?

After seeing the May Crude Oil futures hit negative, traders are getting spooked for the June contracts, because they are afraid the same thing will happen if the lockdown is still in force, and demand remains low.

Looking at the virus numbers, the possibility is high.

 

Even if the lockdown does end, there is too much pent-up supply, and a lack of storage.

Hence prices could remain low or continue falling.

 

We have taken full profit on our crude oil shorts, and will not be taking any new positions for the time being, since many brokers do not allow new positions to be initiated due to the liquidity.

This has turned out to be one of the most profitable trades of the year. 💰😎🔥


< h2>Ranging Stock Markets

Lastly, for the stock market, I would say I am 65% bearish, and 35% bullish.

Since there are no clear signs, I will testing the waters with small positions, but will not be taking any large positions yet.

Stay tuned in our Telegram channel to continue monitoring the stock market for the right time.

Start Your Trading Journey Today!

If you are interested to start your journey with our closely-knit community, click on the link below: https://synapsetrading.com/the-synapse-program/

Here is some feedback from our students:

“Great course. I have studied about candlesticks and chart patterns before attending the course. However, not able to put them together to make consistent result. This course really stitch together and show me how to combine all the knowledge that I have learnt.” – Kyaw Zaw Than

“Course was comprehensive with clear explanation for each strategy taught. Good amount of case study to discuss for better understanding.” – Ethan

“Spencer is extremely detailed and methodical in his explanation. Program is extremely comprehensive.” – Tessa Ong

“Before this I learnt a lot of strategies from books and friends – After this programme I learnt to stick to one and profit.” – Rahim, Freelance Artist

“Trading made simple with only a few setup to master and focus on. Not too much information overload.” – Jude

See you on the inside! 🍻

For the past 2 months, the Covid-19 virus (Wuhan virus, Coronavirus) which originated in China was highly contagious, but it managed to remain mostly in China, hence the global community as a whole did not seem that worred about it, as seem by how the Us markets continued to run up.

However, it now seems that the virus is speaking to other countries quickly, with outbreaks in South Korea, Italy, and the Middle East (Iran), sparking fears that this might go out of hand and create a global pandemic.

Spread of the Covid-19 Virus

As we can see from the map, the virus has spread to most of the developed economies, thankfully sparing Africa and South America.

It would be disastrous if the virus did get there, as they are battling many other problems and other diseases (eg. Ebola).

The cases are still growing daily at an alarming rate, but at least it is no longer exponential.

The risk, however, is that clusters of outbreaks in various parts of the world might cause another exponential spike in cases.

 

Bearishness in Aussie Dollar (AUD)

Safe haven assets like Gold, Bitcoin and USD have been strong, while currencies like NZD, EUR and AUD have weakened the most.

 

Here are some of the recent analysis and trades of AUD/USD and AUD/CAD:

 

Gold as a Hedge Against Stock Declines

Gold is a good hedge against a crash in the stock market, because it is viewed as a safe haven asset, especially when the crash is happening.

Since the stock market is at all time highs, we have advised our students to add Gold to their investment portfolio.

Gold has since rallied strongly, and will likely continue to outperform.

 

If you would like to avoid missing out on any of such awesome trades (which we deliver on a daily basis), then you should definitely check out our training program & trading signals bundle:
https://synapsetrading.com/the-synapse-program/

See you on the inside!

Last week, the Pound suffered its steepest daily fall of 2017 after a shock election result denied any party a majority in parliament days before Brexit negotiations begin.

Source: The Telegraph

Thankfully, our Synapse Network came fully prepared to profit from this move! 😀

Here is a highlight of the early prediction given by Spencer several days before the sharp plunge:

While waiting to short Gold, we took a short-term long trade to make some quick bucks on the side.

 

If you would like to learn how to make a consistent monthly trading income using as little as 15 minutes a day, come join our closely-knit community of traders!
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While most stock markets were crashing the past few weeks, we have been taking advantage of bullish trend in Gold to make a quick profit of $6,497 by going long on Gold, by spending only 15 minutes a day.

This is why it is important to be aware of multiple markets and products, and not always look to buy-and-hold stocks only.

Want to guess what the next big move will be? Stay tuned!