Looks like the Daily cycle low is not in. Very bear market like behavior. #Stocks
And 3 days left on the monthly, clearly showing the 4 yr Cycle top in development.
Stocks are approaching the 2nd Daily Cycle Low, timing is mid next week.
But the damage is done. The next Daily Cycle (last of the weekly) is where the pain would come from. Weakness into mid may.
$MELI stock has done literally nothing in the last 5 years..
Meanwhile:
- Revenues have grown by 3x
- Net income has grown by 24x
- Net margin expanded from 1% to 7%
Itโs currently trading at its lowest valuation ever.
This is the moment you should be aggressive.
Stocks showed us a Failed Daily Cycle this friday on closing basis. In last 4 years, only 2nd such case (March 25 other) of a Failed cycle when it wasn't expected or due.
Doesn't guarantee anything, but does very often signal an intermediate timeframe downturn is underway.
Looks like the sell-off has stopped for now.
If it continues, here are 10 stocks and prices below which Iโll be a buyer:
- $PGY, $16
- $SOFI, $18
- $CHYM, $16
- $AMD, $160
- $NBIS, $70
- $OSCR, $11
- $HOOD, $50
- $META, $600
- $AMZN, $180
- $MELI, $2,000
What else are you watching?
Aswath Damodaran: "Market excluding the Mag-7 is pretty expensive."
I agree that Mag-7 valuations are less concerning, as they are justified by consistent growth and margin expansion.
What's concerning is the rest of the market trading at 22x forward earnings.