These Stocks Are Falling Knives

It is good to see a Head and Shoulders pattern in the making and to see it in the final stage is great luck. Fortunately, I spotted one such pattern in the chart of the Tesla (NASDAQ:TSLA)TSLA Weekly Chart

Source: TradingView

The stock price of Tesla has been trading in a big range between $180 and $414 after it managed to break above the Y2020 top of $167. Peak points were distributed unevenly as we can see the lower tops on both sides of the all-time high. This has shaped a notorious Head and Shoulders pattern on the weekly chart.

We saw this model in the Ethereum and AMD charts this year.

The model is clear; it has slightly up-sloping angle as the Right Shoulder is located higher than the Left Shoulder. A Neckline has been built through the valleys of the Head. The stock price has been hovering here for some time.

Last week, the market closed below the Neckline triggering the bearish signal.

The target of this pattern is located in the negative numbers area so I skipped it. Instead, I highlighted three potential supports that could stop the upcoming collapse.

The first support is located at the peak of August 2020 at $120. It was broken to the upside and then it was retested by a huge consolidation.

The next support comes from the top of February 2020 at $65. The price has been struggling to overcome it for a long time. The book value level of $13 is the ultimate support based on fundamental data. Continue reading "These Stocks Are Falling Knives"

Apple Just Entered the Space Race

Over the past few years, many big technology companies have entered the space race, whether it was Amazon's (AMZN) Jeff Bezos with Blue Horizon, Tesla's (TSLA) Elon Musk with Space X, or Alphabet's (GOOG) satellite internet service, which will be competing with Space X Starlink internet service.

Now the newest technology company to enter space is Apple (AAPL), but in a slightly different way than the others.

On September 7th, Apple released its newest iPhone, the iPhone 14. One of the key features of this new device is the Emergency SOS via satellite feature. This feature allows iPhone 14 owners to contact emergency services via satellites in an emergency when the individual does not have traditional cellular telephone service.

This feature could be a game changer during natural disasters and cell towers are knocked out. Those in need of help will be able to contact first responders with their location, health status, and other pertinent information to help save lives.

Apple is subcontracting the satellite service with a company called Globalstar (GSAT) which already has a network of satellites in outer space for which Apple iPhone 14 and newer phones will be able to access.

The Emergency SOS satellite service will be free for the first two years of owning the iPhone 14; after that time, there will be a price associated with the service, but those details are unknown now.

With more and more of the major technology companies entering space in some form or fashion, it is not hard to see that aerospace technology and the companies currently operating in that industry will benefit from the shift.

That is why I believe you should consider investing a small portion of your portfolio in the aerospace industry. And one of the best ways to gain broad access to any sector is using exchange-traded funds. So, let us look at a few ETFs you can own today, which will give you access to the aerospace industry. Continue reading "Apple Just Entered the Space Race"

Tech Earnings On Tap - Priced For Perfection?

Tech stocks continue to appreciate regardless of any ebb and flow in the COVID-19 backdrop or the prospect of rising interest rates. Albeit there was a minor sell-off in late February as a function of rising interest rates that has been quickly erased. Tech underpins the stay-at-home economy and the so-called back-to-normal economy. And now more than ever, technology serves as an integral part of every slice of the economy. These stocks have remained strong despite the massive rotation into value stocks throughout 2021. Considering many of these names have appreciated since their February lows and breaking through their 52-week highs, these large-cap tech companies are priced for perfection heading into earnings. Stocks such as Apple (AAPL), Amazon (AMZN), Microsoft (MSFT), and the broader index Powershares (QQQ) have appreciated double digits over a two-week period as we head into earnings.

The Value Rotation and Roaring Tech

The market has witnessed a massive sea change as the large-scale vaccination efforts in the US is coming to fruition. The Dow Jones, S&P 500, and Nasdaq have rallied to all-time highs while recovery and value names have recaptured more of their lost market capitalization due to COVID-19. Meanwhile, many technology stocks that powered the market higher in the initial stages of this post-COVID-19 rally have stalled out early in 2021 to now rip higher as well. Once the value rotation began, many high-quality technology names fell from their highs and have traded sideways since their highs back in September. Now tech participation has been a major driver to propel the markets even higher and to even more lofty levels. Continue reading "Tech Earnings On Tap - Priced For Perfection?"

Apple – The Cheapest Growth Stock in the Market

Apple (NASDAQ:AAPL) is no longer the high flying growth giant the markets once loved. In the ten-year period starting in 2003 the stock saw gains of as high as 5,000%. The run up was nothing short of Wall Street magic.

Those days are over…but a new opportunity has emerged.

You see there are two classes of stocks. The first is comprised of optimistic growth stocks – Google, Tesla, Amazon and the like. These stocks trade at incredibly high earnings multiples because investors are factoring in expected growth. Simply put, they are anticipating the company to grow its earnings at a much faster rate than the overall market and therefore are paying much more for the cash these companies are generating today. Continue reading "Apple – The Cheapest Growth Stock in the Market"