Market Update: Prepare for August
Technical market indicators are weakening as August approaches. Post Election Year weakness is likely to arise in the next two months.
August Seasonality
August is usually a weak month for investors. Post-election year Augusts are no different.
Seasonal Selling Arrives
The NASDAQ’s “Best Eight Months” and Mid-Year Rally have come to an end.
July Trading
July is the best of the worst months, but in post-election years it unexpectedly better than usual.
Stock Trade: Month End Catalyst
With this stock out of favor yet showing some stable base building, investors are ignoring major catalyst occurring before month end.
Stock Idea: FDA Softens
Biogen’s new Alzheimer’s, drug approval has investors pondering whether this is enough of a change in mindset to reshape opinions about gene editing companies. Bets are being placed in the options market.
NASDAQ’s Best Eight Months: A Stalling Market
Waiting for the Seasonal sell signal in the NASDAQ, other sector trades come to and end in June. Gearing up for a sideways market is the plan now, until the strong months again come later this year.
Stock Idea: Latin American Payments
We see option activity picking up in our favorite Latin American payment service company. Morgan Stanley analysts expect stronger than expected growth. The chart looks interesting for the stock to run again.
Stock Idea: A Tesla Rival
Tesla, the best innovator with first mover advantage in EV space, gets all the attention. It has a lofty multiple while other auto makers were shunned. Recently, new products signal a change.
Stock Idea: Urban Air Travel
JPMorgan makes the case for an early stage growth opportunity within an established company: Urban Air Travel.