28 APR 2024 Ludicrous Returns Stock Model Update

Stocks recently sold: CHKP, INFA, META, MSFT, RZLT, VMC, ZWS

Biotechnology stock RZLT hit the target stop sell price of $ 2.50 on 4/25.

Social media platform META sold at market open on Thursday 4/25 at market open 421.40, below the stop sell trigger price of 464.48. It was reported that the downward gap at opening was due to the market reaction when CEO Mark Zuckerberg announced that META was going to invest billions in AI as part of it’s future long-term business model. While shares recovered on Friday, the Ludicrous Stock model is advising to not get back into the stock yet.

The stock model sold MSFT due to the horizontal pattern and other bad pattern attributes. The model recommends buying at a future time when the pattern changes to one with high correlation of good 3- to 6-month performance.

Sell Now Triggers (4/26): There are currently no sell no triggers on any current holdings

Stock Model Recent Buy Triggers:

There were no new model buy triggers this past week.

New Buy Now Triggers (4/26): CAVA, TNDM, TSN, ZIM, CECO, BOOT, MAMA

CAVA is a new stock, specializing in fresh food serving Mediterranean food, which is a very popular food, and where the current market has fragmented restaurants. With as crowded as CAVA restaurants are, I predict very explosive growth ahead. This stock could be the beginning of a young Chipotle stock.

TNDM provides medical devices to monitor diabetes. Trends in diabetes include a growing population of folks with diabetes.
Dry bulk marine shipping company ZIM is flashing a new buy point. If this stock returned to a May 2022 stock price of $ 70/share, that would be a growth of 5.3x the 4/26 closing price of 13.22.

  • Current model owned stocks as of 4/26 (stop sell price):
    AZZ (70.67), BSX (63.70), CAT (328.29), CENX (14.76), DASH (123.22), DOV (161.17), DVN (50.83), EME (307.22), ETN (286), HUBB (371.08), IR (86.07), MG (8.41), NMR (5.67), PWR (231.15), QTWO (46.54), SCCO (95.90), SPXC (110.27), TDG (1129.47), TT (274.36), VST (62.40)
    Quantity of current Holdings: 28
    Less: New Sells 0
    Plus: New Buys 7
    New Stock Quantity 35

Ludicrous Stock Model Portfolio: 30% invested in stocks, and 70% in cash (prior to new buys)

Market Status Update Ludicrous Market timing model status is Dark Blue. Dark Blue is a state of extreme caution according to the Ludicrous market timing model, any portfolio that only invests in equity index funds should be in cash. Something happened in the market this past week that hasn’t happened since January 1973. What happened? Market status was red starting 4/19, lasting through Tuesday 4/23. Then the market timing model turned green on Wednesday, 4/24. On 4/24, the market turned into a red zone status again. Having two red zones in one week also occurred on 1/24/73, then the market turned green 1/31/73, then red again on 2/1, one day after being green for a day. The green for one day in between two red zones is indeed a rare and unique pattern. For market to turn green again and provide all clear for portfolios investing in equity index to move back from cash to equity, the 10D simple moving closing average needs to increase 0.1%, then the S&P500 closing market price needs to exceed the 10D moving average by 2.0% (in this particular pattern scenario). It is OK to purchase some select stocks that meet buy requirements during the dark blue stage, with caution.

Happy Investing,
Ludicrous Returns