In the last few weeks we have blogged about the possibility of a 5-15% correction. When the market had its first swing down for about 4%, we were skeptical about the shallow correction and we were waiting to add more money into the second swing down. However, the super strength in the last two weeks made us believe that the correction is done!
The weekly cycle oscillators have turned positive. It looks like the market is charging with full force into seasonal high April/May time frame. The incredible liquidity is the force to be reckoned with. We have to go with the bullish flow. The real danger in bull market is not getting in. Therefore it is not wise to get in and out in a bull market. The real money is made by sitting tight with your positions in a bull market.
Our main holding PLTR is reporting earnings on Tuesday 2/16/2021. The market is closed on Monday. First thing on Tuesday morning we will find out PLTR’s earnings report. The direct listing offering lockup expires three days after the earnings report. 80% of the insiders’ shares will be available for sale on Friday 2/19/2021. The investing community has been nervous about the pending insiders’ sale. We think this event is over blown and the crash into the earning report is a good opportunity to get long. The support is at 30.50, it crashed to 31.34 last Friday, which is a good sign that the previous low at 30.50 held. On Tuesday the pre-market trading could try to take out 30.50 again. If it does, it is a good place to get long.
We are confident about PLTR to outperform the market because it is uniquely positioned in AI and no competitors can come even close to their lead in government/corporate software. It is a bull market, you just have to buy the dips aggressively.
BNGO, our second main position, had a fabulous day on Friday. It took out the previous 11 trading days range and blasted to a new all time high. BNGO is very volatile, but the trend is up. You just have to hold it. It is a bull market!
In the DOW weekly chart below, you can see it is breaking out the upper trend line and the oscillators have turned positive.
We expect the market to continue to climb into the April/May seasonal high time frame. The $1.9 trillion stimulus is coming soon! The hot money will find its way into the stock market.