Current Trading Positions: July 20
Weekly Trading Ideas Cheat Sheet (Included Below)
For the past month or so, I have consistently held around 70% to 75% cash, given the lack of quality set-ups and worsening market conditions. There is no need to force trades in a bad environment, and personally, I would rather wait for the broader charts to improve for now.
When it comes to trading, many leading names are far from being actionable right now and their charts need significant work, especially semis, space, AI supply chain and robotics. With these stocks, it is probably better to wait for key MAs or horizontal levels to be recaptured, or for MA crossovers to occur, before getting long. In other words, you have plenty of time.
Just to reinforce the point, below are the leading megacaps by technical strength as per StockCharts. Yet many of these are now 30% to 35% off their highs, and only a handful are above their 50-day moving average right now!
That said, select software and healthcare names look much more promising and are currently more actionable. If you are still keen to trade in this poor environment, focusing on those stronger sectors while using super tight stops and selling into moving averages is the way forward.
I will be looking to get aggressive again if and when conditions improve. As always, I will flag any new trades in the Discord and update the tables for the weekly posts.
My open trading positions with stop-loss commentary, alongside the Weekly Trading Ideas Cheat Sheet, are included below. (Note: My investment portfolio positions are included in the weekly preview of the Week Ahead post, linked below.)
