Good Friday All. It's been about a week since my last Elite Opportunity update, and for those of you who are serious about making money in the markets, today's update could be extremely important.
Although we've had a number of tremendous winners in recent weeks, including Fortinet (FTNT) just prior to their earnings, a bullish trade on UGLD, the primary bullish leveraged ETF tracking gold, we are convinced now may be the time to fade against these markets. Meaning, if you play options or you're interested in trading some bearish leveraged index ETF's, such as SQQQ, TZA or SPXU, we are convinced we could start seeing a selloff as soon as early next week. If that ends up being the case, you heard it here first.
Before I get into that today though, even iRobot (IRBT), one of our more promising long-term ideas, reported a tremendous blowout quarter Wednesday after the close, beating top and bottom line estimates per usual, and the stock got crushed yesterday. The results by day's end wiped out about 11% of the gains we'd amassed in the idea ever since adding it again to our long-term list back in September of last year.
Why? Forward guidance was a little soft. However, this is classic iRobot Management, under promise and over deliver. More importantly, the Company is still expected to grow their top and bottom line by as much as 50% from this year to next. If that's not good growth, then we don't know what is.
Basically, shares of IRBT became victim to a classic Wall Street move. Beat it up around long-term highs, take it down, and pick it up on the cheap. Nevertheless, we're still up over 30% on the idea in just a few short months. And, in an effort to earn your subscription business, I'm going to suggest investors take a position in the stock once it finally settles, as it's probably another excellent buying opportunity for the long haul.
Markets Teetering On Shaky Ground
As for the broader markets right now, we've finally achieved an upper trend line we've referenced for so long on the NASDAQ Composite, which was a target we set several weeks ago. Now, it's a matter of intestinal fortitude, as to whether or not we want to fade against these markets, when in fact there's been no true sell signal surface, other than assuming they'll fail now that the NASDAQ has achieved levels we've continued to eye as suspect for quite some time.
Sure, volumes remain somewhat low, the VIX is back down around those historically low levels again, and valuations do continue to be a little out to lunch, but until these markets prove it, they "could" still go higher. We suppose, but something continues to tell us these markets are trading on shaky ground.
Provided below is the same daily chart of the NASDAQ we've been referencing for our Elite Opportunity members for weeks now, along with another long-term trend line. As you can see, if these markets are going to pull back, they should start doing it as soon as early next week. While both the DOW and the S&P 500 have made new all-time highs this week, we've seen these markets stage sharp pullbacks on new highs over the last several years many times. Will this time around be any different? We're about to find out.
Not only do we have a key monthly options expiration period set to expire next Friday, TLT, the primary ETF tracking long-term bonds, is actually struggling to close above the all-important $121 level we also continue to reference. However, if that's confirmed today, it adds even more context for a potential reversal in stocks as soon as next week.
We also find it interesting relative strength with some of the bearish leveraged index ETF's continues to pick up a little, even though those vehicles have made new lows over the last few days. That's also a bit concerning for the bullish landscape right now. And, our members have heard us say many times before, those bearish leveraged ETF's have a habit of taking out new lows in recent years before they do finally end up providing a tradable opportunity back to the upside.
The bottom line is we've got a strong feeling volatility could start picking up in a big way as soon as early next week, so if you're looking to really take advantage of the equity markets over the next several months and beyond, now's the time to become a valued Elite Opportunity subscriber.
We'll even give you a free no risk two-week trial run. In other words, if you're not happy with what you're getting for any reasons, you can cancel within the two-week period and pay nothing, so what have you got to lose?
Sign-Up Today to Receive Your Free Trump Report and a Free Two Week Trial
Many of our members have been with us since our very first edition in January of 2013, and that's something we're very proud to tout. Obviously, there's an awful lot of money managers, fund managers and high net worth investors that continue to find tremendous value in what we provide them with day in and day out.
Have an excellent weekend!