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Broad Market Outlook
We are seeing each pull back get tighter and tighter as we continue to drift higher and higher. The reason for this is due to basic human psychology. The crowd following the crowd, as the market gets "safer" , the story of getting back in and the fear of missing out becomes an easier conversation to rationalize.
Over the last week, I've had a handful of conversations with people who's safe money (cash) is burning a hole in there pocket and they want to put it into the market to squeeze a few pennies out of it while they can. Months back however the conversation were the opposite. As in how could they get there cash out of the market so it wouldn't move.
For us this can be very helpful as we can continue to tighten up our stops as this crowd is ready to buy on any dip, even if the dip is only a few hours long.
We are seeing a disconnect in individual names where the big players (AAPL, AMZN, TSLA) are really carrying the tech sector higher as well as the overall market. The Bio's and Healthcare are looking to have lost some momentum after the run's they have been on the last few months while Telecom, Financials and REIT's are setting up to breakout.
With the start of a new month, take a moment or two to write down your goals for the month. Studies have shown that written them down on pen and paper have the best effect and an even better effect if others know what goals you are aiming for (psychological you don't want to let those people down). Can post your goals in the group, send to a family member, spouse. There are no right or wrong ways to set and exceed your goals.
It is truly amazing to see traders like Cris going from setting $100 day goals two years ago, to making over $24,000 this month and shooting for a $40,000 month in August. He has been religious about goal setting and the results are there. The mechanics of trading tend to stay the same while goal setting is the difference maker.
I know traders who have been stuck with a $10k account for years who do the fun stuff without doing any of the important stuff. While traders like Cris and many others in Alpha are making that amount in profits monthly because they know what they are aiming for. Few simple questions to get you started:
What is my profit goal for the month?
What is my saving goal for the month?
What is my account total goal for the month? (current account value + contributions added + profit goal)
How many books am I looking to complete this month?
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Macro Rotation Outlook
SPY
Dow Jones
Nasdaq
MDY Mid Caps
IWM Small Caps
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Etsy Discount Code Alpha20
Message on GroupMe if you earned your 1st Comma Day!
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Sector Rotation
Sensitive - sectors that have moderate correlations to overall market conditions.
VGT Tech
VDE Energy
VIS Industrial
VOX Telecom
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Cyclical - sectors that are more sensitive overall market conditions.
VAW Materials
VCR Consumer Discretionary
VFH Financials
VNQ REIT
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Defensive- sectors that tend to outperforming during sub par market conditions.
VDC Consumer Staples
VHT Healthcare
IBB Bio Tech
VPU Utilities
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Big Picture Set Ups
WSM
Got ticked into WSM on Friday as mentioned for now giving it the proper room vs $80 and will look to add up through $88 if it decides to breakout this week.
DCA $88
Stop $80
V
We have been stalking this $200 flag in V for some time now and its starting to come back into the support area, I will be waiting for a shakeout of $185 then will look to buy up the follow day vs that shakeout low.
DCA - after $185 shakeout, buy through HOD following day
Stop - shakeout LOD
UHT
This is a textbook bear flag pattern, yet we can see the buyers have been taking control the last week or so into the close.
DCA $70
Stop $65
DRI
DRI might not be ready this week and may even need to pull back into the support area around $70, if so we could find a support buy set up vs trying to buy $80. On the radar for now.
CNC
CNC has been flagging under this $68 for a bit and not a hard level but a clean level nonetheless, will be looking to get involved up through $68 when it wants to go.
DCA $68
Stop $64
