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Our Best Market Calls – 2022

June 29, 2022
10:54 am

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Updated top technical alerts, for our Subscribers.

7/5/22

– 6/12/22 to 6/19/22, SPX 3650 TARGET CALL:
On Sunday, June 12, we made the S&P 500 (SPX) our Chart of the Week, at 3900. I told Members that 3650 was a key downside target/support level.

SPX put in the near-term low 5 days later at 3636 & closed at 3674.

-6/17/22, ENERGY:
Energy was a triple digit win for us over the last 18 months. I booked final gains last week (posted below).

-5/29/22, SPX SHORT TERM RALLY ALERT:
Alerting to a potential 10-day rally.
The S&P 500 rally lasted for exactly 10 days, before it broke down from the range.

– 6/8/22, SPX VOLATILITY ALERT

Follow through chart – range breakdown, the next day, as expected, into CPI.

– 5/25/22, 75-BASIS POINT FED FUNDS RATE HIKE CALL
On May 25, I alerted that the correct move for the FOMC was to hike by 75-basis points.

At the time, there was a 93% probability of only a 50-bp hike.

On June 15, the FOMC did hike by 75-basis points. Only a 6.7% chance at the time of my post.

– 6/2022, EXXON MOBIL (XOM) +32% MEMBERS TECHNICAL ALERT
Exxon Mobil (XOM) New all-time highs today. +32% since our Chart of the Day alert for Members on 2/16/22.

6/2022
VALERO ENERGY FOLLOW UP TO ALERT
Valero Energy (VLO) new all-time highs today > 142. +55% since our Members Chart of the Week on 3/13/22 at 91.67. Also, a regular name on the weekly top 25 list since then.

ORIGINAL BLOG AND VIDEO – 2022 MAJOR MARKET CALLS

In this blog and video, we review our top 6 markets calls for subscribers in 2022.

Full video: Blue Chip Daily Best Market Calls for 2022 (vimeo.com)

1. We sold out of high valuation growth stocks in Q4, 2021, before 50-90% declines.
High Beta Sells – Q4 2021 – Blue Chip Daily Trend Report

We closed over 12 high growth stock positions in Q4 2021 and alerted our Members in real-time, by email, on our premium Twitter page and in our daily markets videos.
We informed Members that we were not adding to any of these stocks on the way down and that they will likely underperform in the FOMC tightening cycle.
We sold Netflix (NFLX) on 12/15/21 and avoided a 72% decline.
We sold Sea Limited (SE) on 12/1/21 and avoided an 80% decline.
We sold Roblox (RBLX) on 12/15/21 and avoided a 77% decline.
We sold Facebook (FB) on 12/1/21 and avoided a 46% decline.
We sold Amazon (AMZN) on 10/29/21 and avoided a 36% decline.
We sold Affirm Holdings (AFRM) on 11/22/21 and avoided a 90% decline.
We have avoided trying to buy any of these stocks in 2022 and especially the higher valuation stocks with no earnings.

2. Move into lower valuation, lower volatility, high dividend stocks and energy. (12/5/21)

On 12/5/21, we published a special Members only blog and video, and discussed past FOMC tightening cycles and what we expected for this one.
Three key takeaways:
High valuation stocks with no earnings should underperform and be avoided.
Lower valuation, lower volatility, higher quality stocks with dividends should outperform.
Energy should outperform.
OUTCOME:
Growth stocks have had a record unwind in 2022.
Lower valuation, lower volatility, higher quality stocks with dividends have outperformed.
Energy is the top S&P sector YTD, at +47%. SPY is -17%.

3. Overweight the Energy Sector in 2022. (12/6/2021)
The Energy sector ETF (XLE) is +47% in 2022.

Our open Devon Energy (DVN) long position is currently +145%. We have scaled some gains along the way and moved up the stop.

Our open Chevron (CVX) long position is currently +41%. We have scaled some gains along the way and moved up the stop.

We opened a long position in Energy ETF (XOP) in Q4 2020 and booked 41% – 85% position gains.

4. Over 50% cash, as of February 2022. (2/27/22 – present)

This has been an exceptional value add, greatly reducing drawdown and volatility.

WEEKLY RECAP 2/27/22, CASH AT 55%

WEEKLY RECAP 3/27/22, CASH AT 46%

WEEKLY RECAP, 5/1/22, CASH AT 62%

WEEKLY RECAP 5/22/22, CASH AT 61%