1. Apple $AAPL, close $137.35
There is a popular saying on Wall Street that a market is about to enter a crash dynamic when the investor or trader begins to massively sell their most beloved stocks. $AAPL is one of those stocks all traders love, and last Thursday (-6%) led the sell-off of the market. Worrying. It has been accumulating more than a 25% YTD decline, and its bearish structure has been accentuated.
As always recent earnings show its sales potential remains impressive, and it will surely soon exceed the strong headwinds from high input costs and supply chain shortages: it's Apple!
Technically, today it is already moving and fighting in the area of $140, which if not sustained would take it directly to $126, pulling the entire market, without a doubt. At this point, in the short-term, I wouldn't "buy the dip" as many recommendations out there, rather I would sell on its rebounds to high swings.
2. Lithium Americas $LAC, close $25.15
Trying to find bullish niches in the current financial situation, I must necessarily refer to commodities, one of the few sectors that can function with dignity in an inflationary environment (although not necessarily in a recession!).
And specifically in lithium exploration, which will be one of the metals with the highest global demand in this decade, $LAC appears as the new great US company in this sector. With "numerous catalysts ahead of it that should be positives for its stock," (J.P.Morgan), this early-stage miner seems to be a good alternative for the mid-long term.
Technically he had an excellent bounce a week ago from its strong 52-week support at $20, and today it's breaking the downtrend line to attack the DMA200 at $25. So, due to its fundamentals, I have here a target of $40 (recently reach this price in April) for mid-2023, so, a long-term LEAP option seems an interesting play here.
3. Global X Cybersecurity ETF $BUG, close $24.84
If there is a sector with enormous potential for the future, it is cybersecurity, even more so because of the role it has been playing now in the Ukraine war. As most of the stocks in the sector are volatile, an ETF is likely a good alternative for cautious traders, as for me, who aren't schooled in its complex technology. And $BUG appears to be the best-in-class choice because it has significantly outperformed its peer group over the past year.
Technically it is touching its 2-year support and, at the same time, that of the bearish channel. Check in the daily chart that in all these months this ETF has worked very well doing trend trading, buying on the breakout of the small (purple) flags. In December it broke the structure and go on to form its current (purple) bearish downtrend channel. The crossing of both lines today makes it an unbeatable key level. As I believe the bearish structure of the market will continue, it is likely that $BUG will accompany it, although these levels are so attractive for investors that they are to be watched carefully. I'm keeping an eye here.
4. Sprott Uranium Miners $URNM, close $63.74
$URNM, is a light-volatile ETF that follows uranium miners, and I mainly find it attractive for swing trading, given its violent ups and downs, and for forming recognizable price patterns to which it responds. It gained popularity (and maintains it) among traders, since September 2021 when wallstreetbets speculators "launched it to fame" and took its price to $100 in a parabolic rise. From there, its transaction volume is generally increasing.
Uranium will always be attractive due to its desired nuclear potential and, on the other hand, its demand will always be high because it is a small and illiquid market, so in the long term seems an attractive investment. While now, investors are trying to find its fair value.
Technically, it is at year lows, a level that coincides with the Fibonacci 50% of all its rise since the aforementioned 2021. It is making a retest of the $61.50 level today: if it exceeds it can generate a nice swing, first up to $70, with $77 being the greater resistance because there it forms its structure, in addition to find at that level the key DMA200 and DMA50. If it breaks the support $61.50 it would fall directly to $50 in an attractive short. I believe more in this last possibility.
Good trading,
@BravoTrader
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