Chief Market Strategist Nick Santiago called the up cycle perfectly. People were panicking about the debt ceiling, Europe and earnings, but the charts told the truth. Trades like BRCM, BAC and PG were accumulated into the cycle and have paid off nicely. MOTR is now inching up nicely and in the money. The Hidden Gem plays have an average return in two weeks of 20%. While it was a great week, let's now turn our focus to next week. Next week there may be a little more upside, but we must continue to be smart about taking profits.
Friday closed exactly as expected. Volume died out with the SPY doing only 125 million shares. The markets were flat to positive with the Nasdaq and S&P 500 higher, but the Dow slightly lower on CAT earnings.
Next week should see a neutral to slightly higher week. There is one possible negative though that must be watched. Should an agreement not be reached on the debt ceiling by Monday or Tuesday, expect the markets to start selling. My personal belief is that a debt ceiling agreement will be reached by Monday or Tuesday. That should yield a one day solid rally as shorts exit and buyers step in.
Current Trades From Chief Market Strategist Gareth Soloway
BRCM triggered at $32.95 last week. Half the position was sold for $1.80 profit at $34.75. We continue to hold the remaining one half position with a break even stop. The upside target is $36.65. However, with earnings after the close on Monday, this position will be sold regardless, by the close of trading. Great profits here as BRCM closed at $35.47.
MOTR started to break out today. After buying at $6.95, the stock closed above the key $7.00 level. The closing price was $7.24. With 20% of the float short, this is a time bomb waiting to explode. Once the price hits $7.45, place a break even stop. Continue to ride this higher for 10% gain. At 10%, take half off the table and hold the rest for a continued squeeze.
CSUN was alerted as a small cap possible runner for next week. I love it as it seems to be one of the cheapest China plays left. It is amazing how fast these China plays have blasted higher. It reminds me of the time when I did the Hidden Gem alert in early July. People were so scared of China small cap plays. HAHA. Cracks me up how such big profits can be made by going contrary to the public view. Remember the amazing BAC trade earlier this week? Everyone hated the financial stocks but we stepped up and made money on the best bounce in months. Remember, take the emotion out of the trade and focus on the charts. In any case, CSUN still looks good as long as it does not close below $1.50.
PG - Chief Market Strategist Nick Santiago will keep you all posted on any changes.
My personal guess is that small caps will continue to run next week. It will probably be biotechnology plays. Be ready as we will start discussing possible plays on Monday in the Technical Analysis Video.
It has been another tremendously profitable week. I need to recharge my battery so we can do it again next week. Remember, make sure you have signed up to receive the text/email alerts. This allows you to be notified immediately of trades on the Hot Charts and Alerts.
Thank you all for being members here at InTheMoneyStocks.com. Nick and I will do our best to perfect and make you money each and every way.
Chief Market Strategist