Portfolio Trade Alert – January 21, 2022

By Lance Roberts | January 21, 2022

Trade Alert For Equity & ETF Model Only

As shown below, after a rash of selling over the last two weeks, the Nasdaq is extremely oversold and 3-standard deviations below its 50-dma. Such extreme oversold conditions can’t, and don’t, last for long. With AAII sentiment now extremely bearish, investor positioning negative, and technicals stretched, we think there is a decent setup for a tradeable bounce into next week.

Portfolio Trade Alert January 21 2022, Portfolio Trade Alert – January 21, 2022

This morning we are adding a 5% position in QQQ for a bounce to the previous trend line. We are carrying a 2% loss as our stop level.

Also, we have been stopped out of three other positions in our portfolio: ASAN, NFLX, and ADBE. However, given the extreme oversold condition on those positions we are looking for a rally to sell those positions into. Also, on that rally, we will reduce GOOG and AMZN as well.

Overall we are looking to reduce portfolio exposure to 50% of the portfolio during the next rally.

  • Buy 5% of the Portfolio in QQQ

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Lance Roberts is a Chief Portfolio Strategist/Economist for RIA Advisors. He is also the host of “The Lance Roberts Podcast” and Chief Editor of the “Real Investment Advice” website and author of “Real Investment Daily” blog and “Real Investment Report“. Follow Lance on Facebook, Twitter, Linked-In and YouTube
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