Bull Bear Investor Newsletter 4-3-2023

Thank you for being subscribed to the Bull Bear Investor Newsletter. This is where I put together an analysis on the S&P 500 and the NASDAQ. This week I'll be giving you SPY and QQQ suggestions along with three stocks. Also this week I'll give a Bitcoin Analysis for the fourth week in a row along with an altcoin I haven't discussed in this newsletter. Finally I'll discuss PayPal as the stock I'm dollar cost averaging into based on it fundamentals for the fourth time as well.

S&P 500 - SPY is showing bullish sentiment with the 50 day simple moving average (SMA) still being above the 200 day. However, we still this regional banking crisis playing out in the background along with rumors that the commercial real estate industry could be next with trouble. The market still moved higher as institutions added S&P 500 stocks. I'm still taking my trades with caution because I don't believe this banking crisis is over. We do have possible market moving economic reports coming this week with the ADP Unemployment report coming out on Wednesday and the Department of Labor Unemployment report coming out this Friday. With these reports coming out this week followed by CPI scheduled for next week. Proceed with caution on trades with companies that will be effected by these reports.

Putting the Bull Bear Momentum System parameters over the SPY we get a cross of the 5 SMA above the 20 SMA about 5 trading days ago. As stated in the rules 5 SMA crossing the 20 SMA is our first warning sign. Notice how the 5 SMA, 20 SMA, and price are above the 200 SMA. Probabilities say that price will continue in a uptrend. Now we are going to see if we get a pullback of the 5 period RSI below 50. We will take precautions to make sure we are not trading before the unemployment economic reports come out. What I'll be looking for on the first pullback with the 5 period RSI dropping at or below 50 to buy call options.

Looking at the NASDAQ 100 - QQQ had the 5 SMA cross above the 20 SMA about 12 days ago. Just like the SPY I'll be looking for a pullback with the 5 period RSI to drop below 50 to look for call options.

Bull Bear Momentum System (BBMS) Trades

When markets are in bullish or bearish trend we look for stocks following either trend and we adjust our charts with the BBMS parameters. Same as last week my top three are below: AMD, AAPL, and GOOG.

AMD - (Bullish) This was a trade from last week that turned out to be positive for me. I bought on the red candle when RSI dropped below 50. I held for two days and took profits. There are multiple strategies you can use here beside the Bull Bear Momentum System. As you can see a bull pennant is forming. You can buy a call that is 30-60 days out or you can buy a shorter term 7-14 days out and stay with the BBMS parameters. If it opens positive Monday and is still that way at the close I'd be looking to buy a call option going with the momentum.

AAPL - (Bullish) has a lot of momentum to the upside still. The 5 SMA has crossed and stayed above the 20 SMA for 17 days now. Last week we got a pullback but RSI didn't drop below 50. Wait for the next pullback with the RSI getting back to 50 or below. Pick the call option with 80% intrinsic value with 7-14 days out in time.

GOOG - (Bullish) still has momentum to the upside. You can enter this trade on Monday if it opens and closes positive. Just limit your hold to no more than two days since the RSI is going back up. . 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 at the bottom of the email.

Bitcoin

Bitcoin still seems to have price support around $27k. The 20 SMA is looking like it will be support for the next pullback. As I stated previously I'm looking to buy the pullbacks to the 20 SMA and the 50 SMA. The block halving for Bitcoin in next year in 2024. Keep in mind when I stated that $15,500 was the bottom and I'm still estimating a 10x off that until I take profits.

Altcoin with 100x Potential - AIOZ Network

Occasionally, I'll write about an altcoin that I believe has some potential. When Bitcoin comes out of a bear market a number of altcoins follow. Usually every bull market has a theme or a story that goes along with it. I believe the next run will be centered around Web3

The coin I'm talking about is AIOZ Network (AIOZ). Right now the price for this coin is roughly $0.03. This project is a decentralized Content Delivery Network (dCDN). Web3 I believe will change how we use the internet. AIOZ Network delivers content while removing Web2 barriers between creators and their supporters. This coin has an all time price high of $2.66. So my 100x sound pretty conservative. I plan on writing an article on my upcoming blog that will provide more detail but for now I just wanted to provide a coin for you to do your own research.

Fundamental Analysis Stock Pick

This week $PYPL came back into my margin of safety price of $72.44. It closed at $75.94 which is above our margin of safety. It is safe to still buy because you are still in the ball park of the MOS price. You are also well below the intrinsic value of $145 roughly. Nothing has changed for me here as I'm still buying in by dollar cost averaging. I'm drafting my article on how I get these numbers for my upcoming blog. As I stated last week you can read the book Rule #1 by Phil Town to get a understanding of these numbers.

Thank you for reading

Brian - The Bull Bear Investor