To The Moon

Close to 37% gain taking QQQ from the dip buy on Tuesday as posted. Expecting some profit taking at open on Wednesday for another discounted purchase opportunity. Sell off likely to follow after mid day spike before with another buy low to swing into next trading day to sell high. Not financial advice.

A surge in insider buying is a big bet the November stock rally has legs. In a month when $5 trillion has been added to share values, Goldman’s corporate clients showed a “big tick up” in repurchase activity. Same thing at the buyback desk at BofA, which just had the busiest week of execution orders in the firm’s data history. 

The people in charge are in buying mode, too: Corporate executives and officers snapped up shares of their own firms in November, with the ratio of buyers to sellers set to touch a six-month high.

Buy the dip, not the peak! 😉

Tip 1: The SPY (NYSE:SPY) is currently trading around 454.56. Bulls are hoping for an initial increase to 455.14. If the market remains strong above this level, the next goal is to boost the price to our support level at 455.90. Should 455.90 maintain during regular trading hours, an advance to 456.88 is anticipated, with top bullish target for the day at 457.86.

Tip 2: The Q's (NASDAQ:QQQ) are presently around 389.46. For bullish trends, holding above 390.09 is crucial, with a target to establish 391.39 as a strong support. Should buying continue, we aim for 392.77, with highest bullish target for the day at 393.96.

Buy the retest, not the break! 🤑

During regular trading on Tuesday, the major averages notched modest gains. The S&P 500 advanced 0.1%, while the Nasdaq Composite added about 0.3%. The Dow inched higher by 0.2%.

Federal Reserve Governor Christopher Waller said on Tuesday that current monetary policy appears to be sufficiently restrictive to cool inflation back down to the central bank’s 2% target. The comments helped fuel investor optimism and buoyed stocks.

Much of the year’s rally is due to the buoyancy seen among some of the biggest of the mega-cap stocks that are collectively called the “Magnificent seven.” SPAC King Chamath Palihapitiya weighed in on the trend and its associated risks.

Captioning his post as “Magnificent Seven (M7) or Bust,” Palihapitiya noted that these seven stocks have been trouncing all the other stocks this year. Magnificent Seven is the collective name given to mega-cap tech names, namely Nvidia Corp. (NASDAQ:NVDA), Microsoft Corp. (NASDAQ:MSFT), Meta Platforms, Inc. (NASDAQ:META), Tesla, Inc. (NASDAQ:TSLA), Amazon, Inc. (NASDAQ:AMZN), Apple, Inc. (NASDAQ:AAPL), and Alphabet, Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG).

Palihapitiya recommended investing in the Nasdaq100 Equal-Weighted index rather than a traditional market-cap weighted index for relatively less risky exposure to the Magnificent Seven. He said that the Magnificent Seven stocks account for almost 30% of a market-cap-weighted index, creating a very undiversified index.

In an equal-weighted index, each stock counts equally vis-a-vis a percentage based on its market cap, Palihapitiya said, adding that the Nasdaq 100 Equal Weight did better than the S&P 500 Index. He noted that the former gives you exposure to the Magnificent Seven without it having to be almost 30% of the index.

“So it mimics the return without the concentration,” the SPAC King said.

New trading platform for faster entry & exit

On the flip side, the Nasdaq 100 Equal-Weighted index has many companies that were loss-making and a few others that need to refinance debt soon, which would be expensive when the fed funds rate is more than 5%, Palihapitiya said.

“Nothing is perfect which explains why so much money continues to pile up on the sidelines. Onwards!” he added.

Please click Like 👍, Comment 💬 & Repost 🔄 this article found at the bottom of your screen. Follow me for the latest news, trading ideas & strategies to ride the market daily with profits!

@CaptainTiger @MillionaireTiger @TigerStars @Daily_Discussion @koolgal @KylerLee @Aqa @Andreana