S&P Overview
There is not a lot of new developments on the S&P chart this week. The index did formally hit 10% correction levels, which was talked about widely on the news outlets. The market declined through Thursday with a strong pop on Friday. It was too exciting technically, besides a downward wedge developing. This could be a strong indicator of when the next move starts. I continue to think that we are near the bottom and may have gotten it this week. Many growth stocks are setting up and continue to push upward, which furthers my belief that we are almost out of the woods.
Key Stocks on my watchlist this week:
Virgin Galatic (SPCE)
A different crop of stocks for this week. Starting off is Virgin Galatic. This company is trying to realize a vision of Richard Branson to start space tourism for low-orbit flights. By 2030, many expert the space tourism industry to be a $38 billion industry. Virgin is scheduled to have their first test launch on Oct 22, which could be a huge catalyst for the company. The stock has been very volatile. The chart has been in an extended down trend since earlier this year. It has not yet broken the 10 day moving average, which is a short term indication the stock is ready to move higher. It did find support this week around $15 for a good buying opportunity.
Unity Software (U)
A recent IPO, Unity Software's main business is providing a gaming engine for over 50% of video games today. Think of them as a smaller version of Adobe for gamers. The company has business in a number of services for companies and gamers. There is a lot of hype around this stock. There is not much of a chart with this stock so far, so I am waiting for now.
Bitcoin (BTC/USD)
Bitcoin is the cryptocurrency. Over the last 10 years, Bitcoin has gone through wild swings of valuation. These swings have followed a consistent pattern though and Bitcoin started its bull cycle a few months ago and has been higher month-to-month over the prior 3 months. When Bitcoin starts these cycles, there has been returns of 5000%. This type of return has not gone unnoticed and expert traders and large hedge funds are looking to cash in. In the chart, Bitcoin has fallen off recently. There has been some good signs of new support. I am looking for Bitcoin to start another move higher, over 11,040. For those that do not trade Forex, the symbol GBTC is the closest you can get to trading Bitcoin.
Fun reads from the week:
The week started off with a bang of news. Nikola, one of the first popular SPAC stocks, was found to have been providing false information about their hydrogen power semi-trucks and is now being investigated by the SEC. The CEO was forced to step down, sending shares tumbling throughout the week.
In another weird advertisement, Echelon came out with a Peleton bike competitor. The company called the bike a 'Prime Bike', in reference the the hardware line from Amazon. Peleton stock was sent falling as it appeared Amazon was entering their space, on the heels of Apple's Fitness+. The drop in stock price did not last long, though, as Amazon came out the next day stating the bike was not associated with Prime brand.
Video to Watch:
Dividend investing has grown a lot in popularity with the FIRE movement. Andrei Jikh has a popular channel and recent video about why you SHOULDN'T consider dividend investing for income.
