Tesla – [ Good News! Joining The S&P500! What’s Next?]

17th November, 2020, 5:34 PM

Tesla – [ Good News! Joining The S&P500! What’s Next?]

Image Source: arstechinica.com

Tesla 17th Nov 2020

Chart Source: Tradingview.com

Tesla surged over 10% when it was announced that its finally added to the S&P500 effective 21 Dec 2020 (Monday). Inclusion is based on qualitative and quantitative analysis and being included gives a mark of confidence to investors. There is over USD 11.2 trillion in assets benchmarked to the S&P500 and roughly USD 4.6 trillion of this total is in index funds.  The index includes 500 leading companies and an inclusion in this index brings more funds and investors to the company. So with an inclusion, it’ll probably receive more attention as pension funds, 401K and funds over the world start to add tesla to their portfolio.

To be included inside the index, a company needs to have an accumulation of 4 consecutive quarters of net profits. Tesla had 5 and in the third quarter delivered a record number of 140k cars and is on track to deliver 500k cars this year. In fact, in sept it wasn’t included and its price started to fall and touched the 50ema. With a market cap of 400b and overtaking even Visa it was probably a matter of time before its included.

So with the news of the inclusion , what might we expect? The resistance for Tesla is around $458 and being able to close above it then we might see a push towards $500. It has also recently reached the 50ema which we mentioned in our post. Traders, investors might start piling into tesla when it opens tonight and optimism might be growing as now it seems that tesla is less risky of a stock. As mentioned in our previous post on tesla, with biden’s push for green energy, tesla could also benefit from it. Also, tesla is a tough stock to trade and we prefer to be invested in it rather than taking the spikes in volatility.

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Yours

Humbly

Kelwin&roy

 

 

S&P 500 – [ Crash? Stress? Distress? Let’s Confess, No One Can Predict A Crash, Our Two Cents Worth]

30th October, 2020, 7:07 AM

S&P 500 – [ Crash? Stress? Distress? Let’s Confess, No One Can Predict A Crash, Our Two Cents Worth]

Image source: kennofinanical.com

SALE SALE SALE!! haha..nah kidding! Are you worried, stress or unsure of what to do? We’ll just share our two cents worth on the current market and why this time might be a good opportunity to enter the market if you’re investing.

Market is currently jittery with a few possible reasons.

  1. Record number of Covid cases in the US, White house seems to have given up on fighting covid. Lockdowns are happening in Europe, will US also impose lockdowns?
  2. Stimulus Package. As usual, talks and talks about stimulus, delays anticipation all these adds to the volatility.
  3. ELECTIONS! It’s just round the corner! Market gets jittery around this period and volatility ensue.

As we have pointed out a few times, the weeks before election can get bumpy and even on the day itself and the day after as market reacts to the news. But from stats, we can see that regardless of who wins, market tends to go up after all the noise.

Let’s now take a look at the S&P chart to see where it might head to

S&P 500 30th Oct 2020

Chart source: poemsview 30th oct 2020

From a technical point of view, S&P is currently below the 100ema which is not a good sign but no need to panic yet. The next support would be at the 200ema at around 3200 level. Worst case scenario might be to 3132 level. Currently, S&P500 is still considered in an uptrend as the emas have yet to cross. If the 20ema cross the 50ema then the first red flag will come out. A further cross of the 100em would be our second red flag and we’ll really have to re-look at the market then.

For long term investors, this might present some opportunities for entry with a stagger system and not entering by one whole batch. We usually enter around 3-4 batches for one stock. For investing, don’t try to time the bottom as from past experience its almost impossible to do that.  If you’re a firm believe in that markets go up in the long run then you might want to take a look at the markets very soon. ( not all markets ya, be selective! ) We’re eyeing the S&P500! Have your shopping list ready! We have ours! Do you??

We’ll share more of some of the stocks we’re looking at in the next few post! Keep a look out!

Yours

Humbly

Kelwin&Roy

S&P 500 – [ Don’t Fight The Fed! ]

4th June, 2020, 5:55 PM

S&P 500 – [ Don’t Fight The Fed! ]S&P 500 4th june 2020

Chart Source: Poems2.0 4th June 2020

Many are still in disbelief as S&P 500 rose over the couple of weeks. From our previous post just two weeks back, we mentioned to stay alert as it was in a consolidation and could breakout either way. S&P 500 chose the upside so as a trader, being flexible is key. It broke out and touched our target of around 3111 and a little bit more before having a small pullback.

So what now?  As the S&P500 has been supported by the 5 and 10 ema unless it closes above we’ll have to follow the trend. Around 3130 area is the resistance for now so some pullback might be expected. You can view the chart on our Poems2.0 platform for reference.

In closing, as the word out in the street goes, DON’T FIGHT THE FED! It also means don’t fight the trend, follow the trend as the trend is your friend. =)

We hope our trading blog has shed some light on the market and our readers have learnt something from our sharing.

Yours

Humbly

Kelwin&roy

 

S&P 500 – [ Sideways Consolidation, Stay Alert! ]

19th May, 2020, 7:31 PM

S&P 500 – [ Sideways Consolidation, Stay Alert! ]S&P 500 19th May 2020

Chart Source : Poems2.0

It was a very strong finish over in the USA as stocks surge on positive news of a vaccine by moderna. 

That surge took the S&P past its 200ema on its daily chart which is a positive sign if you’re on the long side. On the daily chart we can see its on a bigger sideways consolidation from about 2760 to around 2968 levels.

If S&P 500 does break above the 2968 level we might see it move to the next possible level of  3100. Many have been skeptical of the rally so far and to be fair we have been too. S&P 500 have rebound about 30%  since the low and is just about 13% off from the high. Its quite hard to imagine that given all the bad economic data that has been coming out. With unemployment data at its all time high, people calling this worse than the great depression. But one thing that  other traders are mentioning is ‘don’t fight the feds’ . They have been quick to respond to the crisis, printing and pumping trillions into the markets.

Though we have caught some downside, we would have wished for a lot more but if market at this point in time is not going down, let’s follow the trend and see where that takes us to. It could be a false breakout at this level so stay alert! Don’t give up yet!

If you like to have a discussion on the markets feel free to drop us a line. 

Yours

Humbly

Kelwin&roy

S&P 500 – [What Now After Hitting Our Resistance]

4th May, 2020, 8:05 AM

S&P 500 – [What Now After Hitting Our Resistance]

S&P 500

Chart Source: Poems2.0 3rd May 2020

It was a week where the bulls were seemingly in control and a string of good news with some not so bad earnings coming out from the big tech companies. But towards the end of the week, the S&P started to have some profit taking.

From our previous blog regarding the S&P 500, it has  actually gone up to the weekly 50ema which we highlighted, the area where we will turn cautious and will be looking out for short opportunities. As the S&P 500 roared through the weekly 50ema, traders were turning bullish and started piling up their longs thinking that market will continue to trend higher. Sadly, S&P 500 made an intra day high of 2972 and started to fall back down.

We are continuing to look for short opportunities and S&P 500 might fall to about 2725 area first in the coming days – weeks and breaking that support might see more downside.

We will update more as time comes. Hope you learnt something from our post and if you’re interested in learning how to use Poems CFD to short the market, do drop us a message.

A trader who only knows how to go long and now short has lost half the battle already! So picking up a new skill during this period is critical!

We also shared a video analysis on the S&P 500 previously, so do head over to our facebook page to check it out!

Yours

Humbly

Kelwin&Roy