Tuesday Update: Focus On Special Situations

Market Commentary

A couple days of market strength has retraced about half of the market decline from the August 8th Dow high (see chart attached). This is normal behavior, so it is too early to write off the past two weeks weakness as a completed "dip." The next few days will tell.

Special Situations Portfolio

We currently have two stocks in the Special Situations portfolio, AVXL and GBTC. These are two of the most diverse stocks on the board. AVXL is a biotechnology company developing treatments for several varied forms of dementia, most of which have no effective treatments or cures. GBTC is an ETF holder of Bitcoin. 

When the ongoing transformation of the website and Alert/Update delivery system is accomplished into a more resourceful and efficient service (we are only the last custom design coding away)  I intend to expand this portfolio to include more stocks like AVXL and GBTC, as well as some of the better looking Wave 5 Buy/Sell signals that appear on my scans. In other words, same concepts, just more of them. 


A Buy Signal is triggered today on a close above $4.42. The July Sell had us sidestep about a 25% decline to the lows at $3.33 earlier this month. If triggered, the Buy will get us in a lower price then we got out. 


GBTC is about $100 off its peak at $777 on August 17th. Is $100 a deep enough retracement to add to, or initiate a position? The stop/reversal is still $200 lower, so I say no, not until price gets closer to the stop so as to reduce risk. Nonetheless. if you are not yet in GBTC, picking up some at this level is better than at the highs last week. Your choice.  

Charts & Trading Tables

In the email version of these Updates I am going to sent the charts and tables as attachments, since some subscribers are some temporary issues with sizing of the tables. The website versions will have the tables charts embedded as before.