The market will go crazy this week

The market will go crazy this week

Jun 15, 2020

We've got a lot of things going on in the market this week, and currently the futures are pretty red. It's going to be interesting to see what happens, and these are the things that I will be looking for tomorrow morning.

SPY has two levels of support for tomorrow's open: 300 and 297. Depending on where SPY opens up tomorrow morning, it will indicate the direction the market will be going tomorrow. If we open below 297, it will be a bearish day until it recovers that 297 and 300 price points. If it opens above 300 and dips below, it will likely rebound and finish green on the day. Bottom line, watch these two price levels, because they will be indicative of what will happen tomorrow.

The global markets were down today, and the US futures are down, likely because of news that COVID cases are spiking in China. That, along with rising cases in the US, there is fear that the economy could crumble again and this "second-wave" is here. However, there is still investor optimism that companies and the market can survive this.

We also have Powell and retail sales report on Tuesday, and jobless claims on Thursday. With all of this news coming in this week, it will definitely be a hectic and volatile week. Might not be a bad week to own the VIX with the volatility that's coming in.

WATCHLIST

I'm still pretty short on the airlines and cruise lines. They had a nice run, but you've got to think of it this way. The airlines were already a pretty thin margin business, and now they are not operating at nearly the capacity that they were before. Now, I'm not saying that the airlines and the cruise lines will all go bankrupt and never come back, that obviously won't happen, but I think there are better places to put your money right now.

I'm putting my money in COVID-proof and recession-proof stocks.

$BETZ - I'm looking at entering into this ETF this week. This is a growth ETF with its focus being on online sports betting and gambling, with its hand it several of the best stocks for that industry. With easing restrictions and states needing more money to pay for unemployment and less taxes, this is low hanging fruit for the states to legalize online gambling.

$NERD - This is another ETF from the same company that created BETZ and this ETF is focused on the e-sports industry, with stakes in several game companies, hardware companies, and platform companies. My biggest holding right now is Tencent, and they have a stake in them. Additionally, their stake in Sea Limited is ideal. This was the other company I was deciding between when choosing SE and TCEHY, but decided with TCEHY because they were also investing in all of the other gaming companies.

LONG TERM

One sector I'm also focusing on as a long term investment is the aging population, specifically senior care. Baby boomers are just now turning 65, and the 65+ population in the US is expected to double by 2035. This creates a great opportunity for growth in skilled nursing, healthcare, and real estate. $OLD is the most diverse ETF for this industry, but more specifically I like the REIT side, and the four that I'm looking at are $WELL, $VTR, $PEAK, and $OHI. Each one of these focuses their portfolio on a different sector of senior care: skilled nursing, retirement homes, and advanced medicine. I'm not sure which is the move right now, but these are the ones I'm looking at. I will likely have a stake in each of them, but I'm deciding the weighting that I'm going to put towards each one.

Other long term stocks I'm getting into/am in: $AIMT, $CHWY, and $PGNY

FINAL THOUGHTS

It is never a bad time to buy. You will never be able to time the market. You could time the market, but you may be wrong. It's all about time in the market. If you believe in the company, the fundamentals, and the projected growth, your investment will be right. Sure you could've gotten it at a better price, but what I've is the best strategy is to open your initial position, and whenever the price drops, you can keep buying more and average down your position. It makes it so easy to grow that position when the price keeps dropping, and if you think the company is solid, you'll be happy you kept buying.

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