Bull Bear Investor Newsletter 3-6-2023

Thank you for being subscribed to the Bull Bear Newsletter. This is where I put together an analysis on the S&P 500 and the NASDAQ. I will give you SPY and QQQ suggestions along with three stocks. Every now and then I'll share a crypto project that I'm investing in and some stocks with good fundamentals. For this edition I'll just analyze SPY, QQQ, and give three Bull Bear Momentum System Trades.

S&P 500 - SPY is showing bullish sentiment with the 50 day simple moving average (SMA) above the 200 day. Some institutions would consider this bullish, but we are in a inflation cycle with any bad news the market could change. This is not a confirmation of a bull market so don't take long trades thinking you will get big returns because inflation is having a big effect on the outcomes. At the end of Friday's close saw a big rally. With the Federal Reserve hiking rates the market can be unpredictable knocking the probabilities out of favor. I'm expecting the next CPI we come in hotter than expected and we get a significant drop for the day on March 14. However I believe the trend continues up with price staying above the 200 SMA for now. If price can get back above the 20 SMA then we will continue up.

Putting the Bull Bear Momentum System parameters over the SPY we get a cross of the 5 SMA below he 20 SMA about nine days ago. However our 20 SMA is above the 200 SMA so for now I'm going to skip this signal. With in the coming days if price gets back above the 20 SMA and we get a 5 SMA cross I'll be looking for a pull back with the 5 period RSI below 50 to consider buying call options. If the market open negative and closes below yesterday's open I'd consider put options. As of now just wait and see what it does.

Looking at the NASDAQ 100 - QQQ is bullish with its 50 day simple moving average above its 200 day simple moving average. However price is above both. Same with the SPY we saw the QQQ give us an uptrend with the 20 SMA crossing above the 200 SMA. Just like the SPY I'm considering call options if the 5 SMA crossed back above. If the market opens negative I'll consider puts depending where it closes.

Bull Bear Momentum System (BBMS) Trades

When markets are in uptrend we look for stocks in a uptrend and we adjust our charts with the BBMS parameters. Sometimes a short term uptrend can occur so we wait until we get a bearish cross of the 5 SMA below the 20 SMA. My top three are below: ADBE, NVDA, and CRM

ADBE - (Bearish) Note: the overall market is slightly bullish so taking this trade goes against the market. RSI is above 50 as of Friday's close. It's possible RSI could get back to 70. Look for a put option when RSI gets back there. Make sure you have 80% intrinsic value with 7-14 days in time.

NVDA - (Bullish) has a lot of momentum. The 5 SMA has crossed and stayed below the 20 SMA for several weeks now. Wait for another pullback with the RSI getting below 50. Pick the option with 80% intrinsic value with 7-14 days out in time.

CRM - (Bullish) wait until RSI comes back below 50. The 5 SMA has crossed above 20 SMA after the good earning report. Pick the call option with 80% intrinsic value with 7-14 days in time.

If you haven't read the book The Bull Bear Momentum System please take the time to do so and watch the videos for better understanding. The link is below.

Thank you for reading

Brian - The Bull Bear Investor