I’ve received several emails about my comment that the second half of June tends to see weakness. Please keep in mind that I’m always taking in terms of probabilities and trying to anticipate seasonal trends. Last year, the seasonality worked almost perfectly. This year, it hasn’t been as consistent. My comments are never meant to scare members. I’m simply trying to remind you that June is one of the weaker months and the seasonal rebalancing, end of the quarter adjustments, etc. tends to lead to higher volatility towards the end of June. Does this mean it HAS TO HAPPEN? Of course not! I’m just saying we’re likely to see some volatility. If a simple comment scares you, that tells me you are over-leveraged and/or still struggling with confidence. That’s not meant to be insulting, it’s meant as a reminder that calm and confident trading is our ultimate goal and continue to work on building that strength. As always, I will take this day-by-day and address the second half of June as we get closer to it.
In going through my screens tonight, here are a few observations:
1) Big Cap Pharma continues to be strong: LLY, NVO, VRTX, REGN, AZN
2) ARM is tightening up above its 50-day and near a buyable range. It continues to see great bullish options flow going out over the next 6-18 months.
3) PRCT showed great relative strength during the market’s recent pullback, and I added to my position today. It had unusual Oct $85 call buying today, which makes me think this has continued upside into year-end.
4) Other stocks near buy points and/or pulling back near their 21-day: ISRG, NTRA, MU, NFLX, TTD
Good luck this week and see you tomorrow for the MidWeek Video.