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Broad Market Outlook
At the end of each trading day there is the customary Money Shower in the chat of all the amazing PnL's you put up every day. Over the last 2+ years, I have made it a daily habit to post and keep track of the PnL posts via our IG Highlights as a way to keep track of our yearly goal (this year the goal is $5 million in profits (currently at $2,500,000+).
This was the first month where I reached the max amount of posts on the monthly highlight (100), where I had to actually go through and drop some of the smallest PnL posts to make room.
For the Alpha chat that is an amazing feat and accomplishment, sure we are almost half way towards our goal with only a quarter of the year left but we still made some amazing progress this year.
We do want to keep in the back of our minds that eventually this easy market will change, we have seen this time and time again, the market gets easy, traders get lazy and the market pulls the rug. Be proud of the gains you have made but remember those aren't earnings until they are locked in.
Take the next few minutes to add up where you are at for the year profit wise, and write down on paper (old school) your end of year profit target. Once you have done that figure out how much you need to make each month to reach that goal, and each week. If you want to be held accountable for this post it in the group or send to someone you trust (best if they too are traders so they understand).
There are few reasons why we cant continue to drift higher however when the music stops, it sucks getting caught without a chair to sit on. Keep upping those stops and ride this market higher.
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Macro Rotation Outlook
SPY
Dow Jones
Nasdaq
MDY Mid Caps
IWM Small Caps
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Discount Code Alpha20
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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 Up
IQV
IQV is flagging as tight as it's ever been under this $165 for a 5th attempt at that level. Now we missed the support buy back last week in this but still on the radar for that bigger breakout.
Target $200
Entry $165
Stop $155
CAT
We caught a nice move in CAT this week as it continues to try and break $146, for now my stop is break even in the trade.
Stop $140 (break even)
IIVI
I bought up through $44 last week in IIVI and after a rocky day or two, we can see that for now $42 seems to be the out. Still in a wide range and will continue to keep that stop until it can make its way into the higher $40s.
Stop $42 ($2 risk)
MMM
A few weeks back I sold 3/4 of my MMM position as we traded the recent range almost perfectly, buying up off support and selling into resistance. A textbook range bound trade, the remaining 1/4 I was willing to give back to break even, and with time we can see how $160 is holding as it try's to works its way up through $168. I have moved the remaining of my stop vs $160.
Stop $160 (+$8 if wrong)
V
Congrats to those who are still holding their full position in this swing, so far this has been a very easy swing to simply trail by the LOD and let the stock work.
We set our sights first on the retest of the all time highs, where it spent 1 day holding it as a few sellers high fived and we saw great follow through on Friday.
Now my stop is below the retest capping my downside instead of trying to sell into the retest (capping my upside)
$210 Stop (+$10 if wrong)
