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Continuing To Build A Watchlist

Writer's picture: TLivingstonBlogTLivingstonBlog

Updated: Apr 1, 2021

While I am still very cautious on this market and remain in cash, I'm continuing to build a watchlist of stocks that have a potential for strong moves should the market begin to rally. It is a big mistake to completely tune out the market as conditions can change extremely quickly. Being disciplined enough to do your homework each weekend is a prerequisite for trading success.


Semiconductors

The semiconductor space contains many stocks that may offer potential in 2021. Globally, we are currently in the midst of a shortage of semiconductor chips due to a variety of factors, including the pandemic, fires, drought, and snowstorms. AMAT broke out strongly this week, but I decided not to take the trade as I'm still cautious on the market. However, there are other stocks that offer potential in this space. Some of these include MKSI, COHR, QRVO, NVDA, and AMD. Technically, MKSI and COHR are shaping up the best in my opinion.






Housing-Related Stocks

Housing related stocks are also shaping up well. LGIH has a beautiful looking chart with lots of accumulation. Like AMAT, I let this one go without me as I'm still very uncertain where the market is going. RH broke out convincingly this week as well, and Lennar is also looking fantastic. HOME, LOVE, and Wayfair are also worth watching.








Crypto-Related Stocks.

The crypto market is also a space that I'm watching closely. RIOT, MARA, and SI are most likely to benefit for a strong uptrend in Bitcoin, with MARA setting up best technically in my opinion.


Travel

I also believe travel may become an important theme in 2021 as the world starts to open up once again. Airbnb continues to be very high on my watchlist for an entry. Although I was stopped out of my initial buy, I will not let that deter me from entering once again should another opportunity arise.




Overall, I'm still content to sit in cash and wait for the market to give a clear sense of direction. While stocks like AMAT, LEN, LGIH, and RH may turn into monster winners, I've made peace with the fact that I will never be able to own every stock. However, the good news is there will always be other opportunities as long as I'm prepared for the market's next uptrend.


Disclaimer: This information is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. None of the information contained in this post constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. From time to time, the content creator or its affiliates may hold positions or other interests in securities mentioned in this blog or the associated Twitter and Instagram feeds. The stock or stocks presented are not to be considered a recommendation to buy any stock or stocks. This material does not take into account your particular investment objectives. Investors should consult their own financial or investment adviser before trading or acting upon any information provided. Past performance is not indicative of future results.

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Hypothetical Performance Disclosure: Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.

Risk Disclosure: Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.

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