Recent Top Call by Mike Paulenoff

In his Trading Room this week, Mike Paulenoff highlighted Sonos, Inc. (SONO) on Monday when it was trading at $12.99. Mike liked the stock's powerfully developing 18-month base formation that was propelling it from its March low at $6.50 towards a confrontation with multi-month resistance at $16.00-17.00. As fate would have it, a bullish report was issued by a well known independent research firm, which placed a $30 target on SONO.

In his Trading Room early this week, Mike Paulenoff wrote that Slack Technologies (WORK) looked poised to hold key near-term technical support at 29.50 off of its June 3 high at 40.78, and to turn up to challenge and take out key near-term resistance at 32.75-33.60. Mike's analysis was informed by a combination of the chart and the potential impact of growing Coronavirus cases on demand for work-at-home technology platforms. WORK was trading at 30.

We've been following Telsa (TSLA) closely in our MPTrader Trading Room, particularly in this past topsy-turvy week.

With Zoom (ZM) at a price of 202 and heading into its earnings announcement Tuesday June 2, Mike Paulenoff noted in his Live Trading Room: "Unless ZM breaks and sustains below 190.00, it still has unfinished business on the upside into the 228-232 target zone, which is the next zone from where the bullish intermediate-term pattern should stall, and roll over into a potentially significant correction.

On May 7, as the iShares Silver Trust (SLV) broke out of a moving average cluster just above 14.00, Mike Paulenoff noted that "a big directional move [was] approaching" which would initially challenge the 14.80 prior rally high and beyond that 15.65/85.

This week in Mike Paulenoff's Trading Room, Mike's warning about a breakdown in Bank of America (BAC) came true. First alerting members on May 4 that BAC was challenging its March-May support line, Mike posted again this past Monday May 11 that the stock "is about to initiate a new down-leg after completing a March-May counter-trend rally." BAC went on to drop from $22.75 at the time to a low of $20.10 on May 14, or 11.6%, before closing the week at $21.44.

If your answer was no, you were not alone.   But members of MPTrader were prepared!   Mike Paulenoff, host of MPTrader.

A week ago, we noted to our members to keep a close eye on Freeport-McMoRan Inc. (FCX).   The chart pattern argued for the price to thrust into a new upleg after completing a 3-week correction.   The correction, from 15.27 on July 26 to 13.81 on Aug 11, held key multi-month support, and positioned the chart into a bullish cup-and-handle formation.

  Last week we noted our 5.6% trade in the SPDR S&P Biotech ETF (XBI).  We continued to be bullish on the XBI, and had a target of 79-80.   This week the XBI met our target and then some, reaching 80.89 before closing the week at 77.18.

On June 14, Mike noted to members that the SPDR S&P Biotech ETF (XBI) was exhibiting a "spectacular technical set-up intermediate term."  The set-up was cup & handle, with XBI finishing and emerging from the handle potentially into a vertical assault to targets of 76 and 78.   He was looking for a kneejerk, head-fake pullback in the 71 area in reaction to the Fed announcement that day, which he got, and added the trade to his model portfolio at 71.

Four trades closed out in recent weeks, yielding a total return of 12%, demonstrate the way in which Mike opportunistically identifies trending sectors through a combination of technical and macro analysis, nabbing returns from their leading component stocks and ETFs.   In banking, he added the SPDR S&P Regional Banking ETF (KRE) on June 5 at $52.73, noting:  "Increasingly, my work argues that KRE completed a major correction from its March 2 high at $59.68 to its May 31 low at $51.08, which ...

The last several weeks have featured several outstanding trades of 28.7% (CLF) and 30.5% (NUGT), with a third trade of 7.8% (CSCO).  On the downside were trades of just -4.1% (VXX) and -2.1% (UNG).   The result was a total of return of more than 60% from just 5 trades.   Below is a chart of how Mike saw CSCO setting up when he entered on February 2, and a table of these recent trades.

Mike Paulenoff and MPTrader were precisely in the right spot into and after the Presidential Election: Long Inverse SDS sold into Wednesday Morning's weakness Long FCX Long TBT Calls! These trades registered profits of 3.2%, 115%, 34%, and 8.4%, as MPTrader subscribers were strategically positioned for Trump's historic upset!   Below is the screen shot of the above-mentioned trades along with chart work on the FCX.

Mike Paulenoff closed out another 8 equity trades this week, 5 of them profitable, giving him a total of 21 winners of his last 28 trades.   This week's profitable trades were the SLW Calls +77%, USO Calls +69%, SLW Calls +46%, RH Calls +69% and JWN +3.1%.   The losers were VXX (-7.5%), DRV (-10%), and VXX (-6.5%).   Below are charts of the SLW from both June 22, when Mike entered the SLW July 1st 21 Calls @ $0.57 (exiting on June 27 @ $1.

Mike Paulenoff closed out another 9 equity trades this week, 7 of them profitable, giving him a total of 16 winners of his last 20 trades.   This week's profitable trades were in GRUB, WLL, LNG, TBT, VXX, SLW, and VXX for a cumulative gain of +118.6%.  Small losses were incurred in DRV and POT for a total loss of -11.8%.   Below are charts of the VXX from both June 20, when Mike entered the trade at 14.34, and from June 24 when he exited at 16.

Mike closed out equity trades this week, all profitable, giving him 9 winners of his last 10 trades, most of them taking advantage of opportunities in energy and in S&P 500 volatility. This week's closed trades were:   VXX entered long 6/07 at 12.88... exited 6/14 at 16.63 for a gain of 29%. FCX entered 6/15 at 10.63... exited 6/15 at 11.03 for a gain of 3.8%. VXX entered 6/15 at 15.87... exited 6/16 at 16.70 for a gain of 5.2%.

On May 31, Mike pointed out that the U.S. Natural Gas Fund ETF (UNG) had broken out of its Jan-May down trendline in the vicinity of 6.75.  He  noted there was still heavy resistance to surpass in the 7.05 to 7.45 region, a move through which would confirm a near/medium-term bottom.   Mike added UNG that day as a trade set-up at 6.86 with a target of 8.  The next day the stock gapped up to 7.13 and reached as high as 7.

Mike added TASR as a trade set-up on Mon May 9, after the company reported positive earnings and revenues the previous Thursday and then received positive news about large orders from the Chicago Police Department.

Mike's call of the week was in the USO, where he posted strong returns from two options positions.   The first was from his April 29 entry in the USO May 13, $11 Put at $0.29. He exited that on May 4 at $0.41 for a gain of 41%.   The second was his May 4 entry of the USO May 6, $11 Call at $0.08.  Mike exited on May 5 at $0.23 for a gain of 188%.

In his chart analysis of Potash (POT) on April 13, Mike noted that POT appears to be in the early stages of a rally that will challenge the March 7 high at 19.38 into key trendline and EMA resistance at 20.20/90 in the upcoming days.     On top of the strong techincal trend off the January 26 low of 14.64, he saw that POT could benefit from stronger energy, a softer USD, and recovering commodity prices in general.