Bull Bear Investor Newsletter 6-5-2023

Thank you for being a reader of 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 a twelfth straight week. Finally I'll discuss PayPal as the stock I'm dollar cost averaging into based on it fundamentals for the twelfth time as well.

S&P 500 - SPY is still showing bullish sentiment based on the simple moving averages (SMA) and technical analysis. The regional banking crisis that I've been talking about for the past few months is still playing out in the background and we don't know what to expect next. We saw the market very bullish this week after agreement on the debt ceiling and the unemployment report that the Fed was ok with for now. I'm still taking my trades with caution because I don't believe this banking crisis is over. Which it has been very quiet but I do believe we will see more banks having trouble later this year. We do have major economic reports coming this week that I believe will not have a major impact on the market. On Wednesday we have the US Trade Deficit and Consumer Credit and on Thursday we have the Wholesale Inventories report. Finally on Friday we don’t get any reports at all.

Putting the Bull Bear Momentum System parameters over the SPY we get a cross of the 5 SMA above the 20 SMA about sixteen 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. The cross we got along with the price action is very bullish. If the RSI drops below to 50 or below I'll be looking to buy call options.

Looking at the NASDAQ 100 - QQQ had the 5 SMA cross above the 20 SMA about nineteen trading days ago. QQQ could pullback this week from all the bullish sentiment from the previous week. If the RSI can drop back to 50 or below I'll be buying 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. See my top three below: AMZN, TSLA, and ADBE.

Note: In the future I’ll be posting setups with a high probability for profit with price patterns. I’ll add a ebook and video to show I analyze these trades. For now I’ll keep giving the BBMS picks until it is complete.

AMZN - (Bullish) Amazon had the 5 SMA cross above the 20 SMA about eighteen trading days ago. RSI is currently above 70. I'll be waiting for the RSI to drop back to 50 or below to consider call options.

TSLA (Bullish) Tesla has strong momentum to the upside. The 5 SMA crossed the 20 SMA about sixteen trading days ago. I will be watching and waiting on a drop to 50 or below before I enter call options.

ADBE (Bullish) Adobe is showing bullish sentiment with the 5 SMA crossing the 20 SMA nine trading days ago. Last week we did not get a pullback but If we get one this week and the RSI drops to 50 or below I'll consider buying call options.

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 showing price support at $27k and the 100 SMA looks like it is holding. This past week we have seen Bitcoin trading in a tight range and it seems like price is fighting to get back above the 50 SMA. As I stated previously I'm looking to buy the pullbacks to the 20 SMA and the 50 SMA but getting a pullback to the 100 SMA is a solid place to buy. If we can get Bitcoin to close back above the 50 SMA I believe we are headed back up. The block halving for Bitcoin is one year away and adding to a position now you will be early in the trend. As I have stated in the previous weeks less supply will be on mined in the markets once the halving occurs. Combined with inflation we could see a Bitcoin price that could 20x off of its bottom price of $15,500. It seems impossible but we are talking $310k Bitcoin price. Here in the not so distant future I’ll show you how I leverage trade Bitcoin but for now jus t keep dollar cost averaging.

Fundamental Analysis Stock Pick

This week PayPal (PYPL) continued to trade further below our (MOS) price of $72.44 this week. It closed at $63.36 which is well below our MOS on Friday. Price has seem to come back up but I do believe it still could get back to the level where it bottomed around $60. I added around that price range and will do so again if comes back. Retail investors have been scared out of this stock and institutions seem to be most of the buying. As I mentioned last week that Bridgewater Capital, Ray Dalio's firm added more shares of PYPL during this sell off. I'm still drafting my article on how I get these numbers for my upcoming blog which I will have done soon. As I stated in the previous weeks 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

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