investments

In light of the recent market surge following President Trump's re-election, both SPY and QQQ have experienced significant gains. SPY has appreciated approximately 7% from our entry point, while QQQ has risen around 11%. As these indices approach overbought conditions on the daily charts, it may be prudent to consider profit-taking strategies.

Recommended Actions:

• Risk-Averse Investors: Consider booking partial profits at current levels to lock in gains. Additionally, raising stop-loss orders can help protect against potential downturns.
• Long-Term Investors: If you have a higher risk tolerance and a longer investment horizon, you might opt to maintain your positions, monitoring market developments closely.

Outlook:

While the current momentum is strong, market corrections are a natural occurrence. By strategically managing your positions, you can capitalize on gains while mitigating potential risks.

 QQQ offers an objective add-on opportunity for long-term investors around 448, as it sits just below its 100-day moving average. This level also coincides with key support, while the NQ futures are hovering near the 200-day moving average. It's a strategic entry point for those looking to strengthen their positions during this potential market stabilization. SPY also offers an objective add on for long term investors around the 100 day moving average at 540. 

 The US 500, represented by the SPY, recently experienced a significant retracement, coming close to its 200-day moving average before bouncing strongly back above both the 100 and 200-day M.A.s. This recovery is a clear signal of renewed strength in the market. The RSI (Relative Strength Index) still shows room to move higher before reaching overbought territory, indicating that there’s potential for further gains. Additionally, the PPO (Percentage Price Oscillator) has formed a bullish crossover, further confirming that the SPY is in a bullish trend. Given these technical indicators, now is an opportune time to be invested in SPY as the market momentum points towards continued growth. 

 Recently, the NASDAQ tested its 200-day moving average, presenting a prime opportunity to add positions to the QQQ for a long-term hold. This technical indicator often acts as a key support level, and with the NASDAQ now trading above both the 100 and 200-day moving averages, the market shows strong potential for continued upward momentum. The RSI (Relative Strength Index) also indicates plenty of room for growth, suggesting that prices could reach all-time highs and possibly surpass them. While the current economic sentiment remains bullish, we are mindful of inflationary pressures that could influence market conditions. However, for now, the market's direction remains positive, and we will adjust our strategy as necessary when the economic landscape shifts. 

 PFE recently announced a $1 billion investment plan in China over the next five years, aimed at expanding its research and development efforts in line with China’s "Healthy China 2030" initiative. The strategic focus includes enhancing diagnostics, supporting local biotech, and introducing innovative treatments to the Chinese market. However, uncertainty looms in the U.S. market as President-elect Donald Trump considers appointing Robert F. Kennedy Jr. to oversee health policy, raising investor concerns about potential impacts on vaccine manufacturers like Pfizer.

Technical Chart Analysis:

Pfizer is currently oversold on the daily chart, with a bearish PPO separation and recent breaks below support at $27 and the 100- and 200-day moving averages. The stock now approaches further support around $25-$26, which could serve as a key buying opportunity. Despite recent bearish signals, PFE’s position as a healthcare leader suggests a likely rebound, especially as the sector could see renewed interest in future rotations.

Investment Strategy:

Given the current oversold conditions and Pfizer’s long-term stability, this is a prime opportunity to add to positions at a discount. For long-term investors, the stock’s pullback presents a favorable entry point, aligning with potential growth from its international expansions and future sector rotations into pharmaceuticals.

 Pfizer (PFE) offers a strong entry point for long-term investors. The stock is down 50% from its highs but is now trading above its 100-day and 200-day moving averages for the first time since early 2023. Pullbacks to $25 are likely and present buying opportunities for those with a longer investment horizon. With its large market cap, steady revenue, and profitability, Pfizer is a stable choice for long-term investors. The stock also provides a solid quarterly dividend yield of approximately 5% annually.

For swing traders, consider taking profits around $30-$40. Long-term investors may target $40 or even a return to previous highs near $60.

 Intel (INTC) has garnered significant attention from institutional investors, with Catalyst Capital Advisors LLC increasing its holdings by over 1,100% in Q3 2024. Several other hedge funds also initiated or expanded positions in Intel, signaling renewed interest in the semiconductor giant. The recent election results have further driven chip stocks higher, as market sentiment has turned optimistic about potential industry support from the new administration.

Intel recently crossed above the 100-day moving average, breaking resistance around $24.60. RSI is approaching overbought levels, while wide bullish PPO separation suggests continued momentum. Intel faces minor resistance at $26.92 and more substantial resistance around $29-$30, aligning with a gap fill and the 200-day moving average.

For short-term investors, consider booking partial profits around $27 and raising stops to secure gains. Longer-term investors may hold positions through the gap fill, targeting further gains if Intel sustains momentum in the broader semiconductor rally. Stops should be set below recent support levels for risk management.

 Intel (INTC) presents a long-term investment opportunity at current levels. As a laggard in the semiconductor sector, INTC is investing heavily in next-generation chip technology, which has impacted its revenues and offers the stock at a discount. Recent issues with their microchips have contributed to the devaluation.

Currently trading well below its 100-day and 200-day moving averages, INTC may see further pullbacks, so investors should be prepared. With the stock in deep oversold territory and a recent gap down, there's potential for a recovery to $30 in the coming months.

While not on par with NVDA, INTC remains a solid long-term play, especially with the U.S. investing in semiconductor businesses. Its commitment to future growth and innovation makes it a viable investment for those with a long-term horizon.