________________________________
Broad Market Outlook
Ok, maybe the great retest is a bit dramatic but a solid reminder of what we need to do when the stocks we own start to retest those prior all time highs.
As we have seen numerous times in the past, those retests are so obvious after the fact in stocks that we were not in. Yet when we are in them, we blindly overlook and discount them, resulting in giving our names too much room as the stock could not look any better chart wise.
In one of my own trades this week, I discounted the retest, I saw a nice flag forming on tight risk and took it, only to obviously see the retest a mere dollar higher.
As we scan most names or even look at names that we are in, most are following a similar pattern.
Most names put in some type of high in the beginning of September, pulled back and are now working there way back to there respected high (broadly speaking in most names).
AFRM is another example of a much better trade then the FRT example, since Shakes call out in the $60s and this name trading more then 100% higher. Everything about the chart looks perfect, almost everything, the only downside is this is right at the retest.
We have seen names push through the retest area just a tad further as we see stops get run as names shakeout just a bit farther then most can handle.
When we have this huge cushions in names (up 50% to 100%+) it can be easy to take your eye of these winners and say, it needs time. Yet these are often times to ring the register.
How perfect did ROKU look as it climbed 80% back to retest its $480 prior highs?
Only for it to reverse the entire move back to support.
These are those reminders when we have those massive winners or my tiny winner in FRT, as perfect as those retests look, we need to use this times to ring the register.
When we retest that prior high in the SPY and the transitory positive news is plentiful look for spots to take profits.
Don't worry, if you, like myself and anyone else on the street have no clue about the made up terms wall street uses to sound smart, transitory means not permanent.
Just as our profits are not permanent until we ring the register.
From Ben G
________________________________
________________________________
Macro Rotation Outlook
SPY
Dow Jones
Nasdaq
MDY Mid Caps
IWM Small Caps
______________________________
Do You Have The Patience to Make It On the Leader Board?
Or the PnL?
Congrats to Gina for making it onto the leaderboard!
Email a screenshot of your YTD PnL to be added!
________________________________
Sector Rotation
Sensitive - sectors that have moderate correlations to overall market conditions.
VGT Tech
VDE Energy
VIS Industrial
VOX Telecom
________________________________
"Don’t tell me what you think, just tell me what’s in your portfolio"
If you are tired of entering in buy stops to mirror our entries you can follow the links below to open an M1 account that will do all this for you with ease!
PS before you open an account at TD, reply to this email with: Your full name and email to get a $50 bonus
.
________________________________
Cyclical - sectors that are more sensitive overall market conditions.
VAW Materials
VCR Consumer Discretionary
VFH Financials
VNQ REIT
_________________________________
New Lessons
_________________________________
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
Have a friend that would like to give trading a shot?
Send them this link so they can start for the next 90 days at no cost!
Code FAMILY
Make sure to let me know their name so I can add a free month to your membership!
______________________________
Big Picture Set Up
AFRM
As most of you that have been in and trading this AFRM have done an amazing job since Shake called it out more then 100% ago in the $60's. Just when stocks look perfect at the retest are often when we take our eye off the ball to give it room, only for the stock to pull back the amount of room we give it.
CBRE
So far CBRE has ticked a new ATH however still very close to the prior ATH which would peg it as a retest. Keeping the risk tight for now.
CERT
This CERT is setting up nicely after setting up a few times under this $40 level up through the IPO high, one that we do not want to miss but have to remember that the mindset of these IPO high set ups need plenty of time. Could be good to part at M1 if/when it wants to start breaking $40 again.
DIS
As frustrating as this base has been in DIS as we have wanted this $180 base to break to retest the prior all time high. It is great for DIS stock in general, seems like it won't be breaking this base until earnings.
ESS
REIT names have continued to flag with some breaking out, this ESS looked prime for a breakout but was just quite not ready just yet. One to keep on the radar for when it's ready.
FRT
Funny how prior to getting in we can discount the retest until after the fact, $123 looked great in FRT until I got it only to see it hold the retest to the tee. Reminder to take profits at the retest.
SNAP
As much as we want this snap to break this flag, with earnings in a few days, we should not expect much out of this name until it reports. With that being said, if you are saying in your head "Snap has to beat and gap up" take your profits because when everyone is thinking that, the opposite tends to happen.
VEEV
Support buy working nicely in this VEEV, took some profits so far after the 2 day move it had, keeping the stop vs the PLOD for now.
________________________________
Traveling Experts
We have a few exciting experiences planned for the year ahead. We hope you find a trip that sparks your interest to come enjoy and network with other like minded members!
Dates:
4th Annual Vermont Snowboarding Trip Jan 20th-23rd
2nd Annual Blue Ridge Rally May 13th-15th
2nd Annual Long Beach Island June 15th to 19th
4th Annual Vermont Trip
Video from the last snowboarding trip!
10 spots left, $100 deposit to hold your spot!
2nd Annual Blue Ridge Rally
4 spots left, $100 deposit to hold your spot!
2nd Annual Long Beach Island
Video from the last beach week vacation!
10 spots left, $100 deposit to hold your spot!
________________________________
________________________________
Terms and Conditions Trading Experts LLC (“Company”) is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or urgencies customers should buy or sell for themselves. The independent contractors and employees or affiliates of Company may hold positions in the stocks, or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company’s products (collectively, the “Information”) are provided for informational and educational purposes only and should not be construed as investment advice.