________________________________
Broad Market Outlook
When the markets are slow as we sit on our hands it can feel painfully boring then in a snap we get weeks like this past one. Where the set ups present themselves and we exploit them for profit.
We would love for a raging market 260 days of the year, in reality, if we get even 60 of those days it can be a amazing year. Most want to know when these great days will be so they can put risk on and take off during the boring times.
Yet you or I only know of these times because we are always keeping an eye on the market for opportunities. We are shadow boxing 5 days a week, prepping for the fight. With this sharp eye hunting for opportunities we sometimes forget about how long our trading career can last.
For instance, did you know if you are saving $115 a week into your Roth IRA and achieve even average market returns of 8% you could easily retire with over $4,000,000 if you start this at age 25?
That amount in just VZ stock would pay you $200,000 a year in dividends, tax free might I add.
When the markets slow up and you get bored, let me know and we can review your current financial plan to make sure you are on the path towards retiring with millions down the road.
______________________________
______________________________
Macro Rotation Outlook
SPY
Dow Jones
Nasdaq
MDY Mid Caps
IWM Small Caps
________________________________
______________________________
Sector Rotation
Sensitive - sectors that have moderate correlations to overall market conditions.
VGT Tech
VDE Energy
VIS Industrial
VOX Telecom
________________________________
________________________________
Cyclical - sectors that are more sensitive overall market conditions.
VAW Materials
VCR Consumer Discretionary
VFH Financials
VNQ REIT
_________________________________
Defensive- sectors that tend to outperforming during sub par market conditions.
VDC Consumer Staples
VHT Healthcare
IBB Bio Tech
VPU Utilities
______________________________
Friends and Family Challenge
If you have a friend or family member that would like to give trading a shot, forward them this email and have them click here to start!
If they do, let me know there email address, I will set it up so if they decide to continue they will get the same rate as you, and you will also get a free month as a thank you from us!
Any questions let Heaven or myself know.
______________________________
Big Picture Set Up
ABT
ABT is showing us that there is still a seller at $114, whenever that person is done selling, we should be ready to hope on board above $114.
DPZ
DPZ like NFLX we were able to sneak in off a micro support level. Low risk shot that could give us great stock or a small loss. For now my stop is vs $382 while I keep an eye on the next few battle ground areas, first up is the $400 level (like $500 in NFLX). If we can clear $400 we are in good shape, we not, will take the small loss.
KMX
Tried this KMX back in October and cheated the $96 area costing me a 5% loss as KMX was simply not ready. After holding support it has shown us its still flagging under this $100 area.
This time around we have a better probability of success then when I was trying to get in last month.
For now will look to add up through $96 vs $92 with the plan to add up through $100.
NFLX
Got ticked in on a tight risk buy in NFLX on Friday, we really want to see a move up through $500 which has been the key area that it has pushed up off resistance towards the recent highs.
For now the proper out is vs $460, if we cannot get a push through $500 by early next week, we may be too early to this buy back and tighten up the risk might be the move.
PLAN
We did not get the ORB in PLAN however with earnings behind it now, if it can pull back into the recent range we could grab it on a turn. For now I will be keeping an eye out for a sneaky buy back up through $64.
SHOP
We got a nice support buy back in SHOP this week with a solid 3 day move into the shorter term resistance area. If SHOP can push through this downtrend/$1000 area we could be in good shape to push back up towards the $1120 resistance area.
If you are treating this as a tighter swing, LOD stop would be the move.
If you are trying to hold until the retest $870 would be the proper out.
SNAP
SNAP has continued to flag nicely, was expecting some more pain, which could still happen however for now the buyers seem to be present in this SNAP. My longer term target is still around the $100 area to really make this long term hold worth the time I've been in. If your cost basis is sub $30, let your winner work.
If you are buying post earnings and can trade this wide range, keep ringing the register!
TWTR
We got a nice breakout through $44 on Friday as TWTR ran into the resistance area at the start of the Gap Fill area. If TWTR can push through $45 and start to fill the gap towards $48 this could be an easy swing with the goal of holding till the retest.
For now the proper stop would be vs $42.