VIDEO: Big Rebound This Week But Vigilance Is Key
We're balancing near-term market technicals against long-term opportunities.
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In today’s Daily Rundown video, Chris Versace discusses the moves and price target increases made by the Pro Portfolio this week.
Those and other moves in April led the Portfolio to continue to rebound this week, but as Chris shares, now is not the time to take our eye off the ball.
He explains the Portfolio will be balancing market dynamics, fresh developments and long-term opportunities if the need to make a prudent decision on the Portfolio is at hand.
Transcript
CHRIS VERSACE: Hey, everyone, Chris Versace here. It is Friday, May 16. Halfway through the current quarter, but it's also been a very nice week for the market and an extremely nice week for the portfolio, albeit a very busy one. What do I mean?
Well, think of it this way. On Monday, we kicked off the week by buying some additional shares of Apple, Elastic, Marvell, Meta, Universal Display, and Qualcomm. And throughout the week, we also made a number of price target adjustments higher in the case of NVIDIA, Axon, and I hope you saw our alert earlier today where we raised our price targets for Morgan Stanley and Bank of America. All good things.
But while we've reaped the benefits of these actions and others that we've taken in the last few weeks, including a well-timed exit of the portfolio's inverse ETF positions, the message I want to share with you is, yes, we can enjoy the bounce back in the market. We can enjoy how the portfolio has moved ahead of the S&P 500 on a year to date basis, but-- you knew there was a but-- let's not get caught patting ourselves too hard on the back. Let's not rest on our laurels, or as some would say, take our eye off the ball.
Again, we've got a long way to go in 2025. We will need to remain vigilant. Even though the uncertainty has been dialed back from what we can call maximum uncertainty, there is still some that remains. As a result, we are going to continue to do what we do. Follow the data, update our thinking as fresh information becomes available, communicating our thoughts to you.
As we do that, especially in the near term, we are going to continue to follow some of the key technical indicators for the market. We've talked about how the relative strength index for both the S&P 500 and the NASDAQ composite are flirting with being overbought. We will continue to keep a close watch on other key indicators as well.
And if the time comes that we've got to make some prudent moves with the portfolio, we will. Not only are we going to be watching some of the RSI levels for our positions, but we're also going to be mindful that some of those positions, whether it's Morgan Stanley, Axon, ServiceNow, Palantir, they've all made significant moves since the market bottomed earlier in April.
Now, what we'll want to do is make room for potentially prudent decisions about the portfolio, but we also don't want to necessarily jump the gun. Remember, we are long term investors. If it becomes prudent to take some chips off the table because the market looks like perhaps it's getting a little wobbly, might give back some of those gains, that's what we'll be contemplating.
But remember, we do want to keep our positions relatively intact for the longer term where it makes sense. So we will continue to revisit the portfolio's stakes in the various positions, being mindful of the technicals, heeding the fundamentals, but making the prudent decision as needed on a case by case basis. That's what our plan is.
On the housekeeping front, I just wanted to share that I will be back in New York starting off next week. And that means I'm going to be making some of the rounds. Monday, I'll be on with Fintech TV, the Schwab Network in the morning, and in the early afternoon, Fox Business with Charles Payne. Tuesday I'll be on with Yahoo Finance in the morning and Wednesday morning back with NYSE TV. I'll also share that we will see Jay Woods return to the podcast next week. We will be taping that from the floor of the New York Stock Exchange.
Given all of those things, your question might be, Chris, are we going to have office hours next week? My answer is yes, we will. We will be having office hours on Monday, May 19 between 4:00 PM and 5:00 PM in the forum. However, before we get to any of those appearances or even office hours, we still have more stuff coming your way later today. And as you ease into the weekend, we will have the weekly roundup for you to peruse.
So my friends, we had a good week. Let's remain vigilant. Make any prudent moves that we need to in the coming days based on what we learned. But before then, enjoy the weekend. And on Monday morning, I will be back with you from this very location, most likely, as we break down our roadmap for next week. Have a great weekend, everybody.
