In this video, Pat Walker of Mission Winners acknowledges the current market volatility and urges viewers to exercise caution when making investment decisions. He emphasizes the importance of technical analysis, particularly focusing on price and volume action on both weekly and daily charts. Day trading and overly complex indicators are discouraged.
Walker utilizes Exchange-Traded Funds (ETFs) to identify areas of strength and weakness across different sectors. Currently, sectors like Technology (XLK), Software (IGV), Home Construction (ITB), Retail (XRT), Financials (XLF), Consumer Discretionary (XLY), and Basic Materials (XLB) are showing signs of weakness. Communication Services (XLC), Healthcare (XLV), Energy (XLE), and Industrials (XLI) are considered neutral, while no specific sectors stand out as particularly promising. However, Walker identifies a potential buying opportunity in gold (GLD) if it forms a solid base.
When it comes to individual stocks, Walker generally advises avoiding those trading below their 50-day moving average. He recommends looking for clear and simple chart patterns for entry points, while also staying aware of potential headwinds like upcoming earnings announcements. Several stocks are specifically mentioned as ones to avoid, including Apple (AAPL), Amazon (AMZN), Alibaba (BABA), Boeing (BA), Mastercard (MA), Microsoft (MSFT), Netflix (NFLX) before earnings, Tesla (TSLA), and Visa (V). For Google (GOOG) and Nvidia (NVDA), Walker suggests caution due to upcoming earnings and recent strong performance, respectively. Square (SQ) is also identified as one to be cautious about.
Overall, the key takeaways from Walker’s analysis are to prioritize risk control, avoid impulsive decisions, and be extra cautious in this currently weak market. Combining price analysis with volume studies is crucial for understanding potential opportunities, and investors should be mindful of upcoming earnings dates that might impact stock prices.
ETFs on our list: ARKG, ARKK, ARKW, BBH, CLOU, ERX, FDN, FFTY, GDX, GDXJ, GLD, HACK, IBB, IBUY, IGV, IHI, IJH, ITB, IVW, JETS, KRE, MDY, OIH, PSJ, QLD, QQQ, SKYY, SLV, SLX, SMH, SOXL, SPY, SSO, TAN, TNA, USO, XAR, XBI, XEC, XHB, XLB, XLK, XOP, XLC, XLE, XLF, XLI, XLP, XLU, XLY, XME, XRT, and XSW. Scanning these ETFs to uncover strength helps us tune in to specific industry groups and sectors.
The MAXLIST Review analyzes the performance of the following companies: AAPL, AMZN, BABA, BIDU, GOOGL, GS, MA, META, MSFT, NFLX, NVDA, SQ and TSLA. We evaluate their strengths and weaknesses in the market and identify the opportunities and threats they face. The MAXLIST consists of leading and influential businesses that have the potential to generate significant returns
