Broad Market Outlook
Scanning the market, the path of least resistance seems to be higher with virtually all sectors following the broader markets lead that should result in a green summer for us.
Now why does it seem like some are experiencing the treadmill effect.
Where one's account might be doing fine, yet someone else is higher, forcing unnecessary trades to try and play catch up, ending up worse off then one started.
We often are quick to forget that the only person we are battling against are ourselves. As we try to pass up the next guy, we fail to realize they could not give one thought to what we are doing, as they are only focused on there own race.
Recently I have been working quite closely with Natalia, each month, she recaps her trades and we hop on a call to review. Each month, she initially thinks all of her trades are horrible, yet as we work through each, we come to the realization that most were very good trades, even the one's that failed. Something only a real trader can comprehend.
Over the months of doing this, we can see how a lot of the random trades and forced add's slowly get removed until most of the trades all start to look quite similar (a good thing).
As each month has gone by, the conversations have slowly drifted away from the treadmill (worrying about what everyone else was doing) towards the open road as she focused on what seems to be the best path given her current experience level.
Even for myself, having to recap my trades during chart talk has helped me focus more on proper pivot lows in my winners. While doing my own personal recap at the end of the month religiously, keeps me on the road and away from the treadmill.
After 5 years of doing this monthly recap, it is not something I am required to do, it is something I need to do. To flush out the good ideas and know that the path I am on has some arrows pointing in the right direction. While also finding the mistakes and hidden lessons learned.
If you feel like you are running on an endless treadmill, we will help you get off but you have to meet us halfway.
To start finding your weaknesses and exploiting your strengths more consistently the answer is quite simple, let's get back to the monthly journaling and recap calls, reply "Im in" to learn more of what's required.
**Warning - if you email saying you are in, and do not hold up your end of the deal, there will be some downside, we all need honor our word and have some skin in the game**
From Ben G
Macro Rotation Outlook
MDY Mid Caps
IWM Small Caps
Do You Have The Patience to Make It On the Leader Board?
Sensitive - sectors that have moderate correlations to overall market conditions.
"Don’t tell me what you think, just tell me what’s in your portfolio"
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Cyclical - sectors that are more sensitive overall market conditions.
VCR Consumer Discretionary
Defensive- sectors that tend to outperforming during sub par market conditions.
VDC Consumer Staples
IBB Bio Tech
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Big Picture Set Up
As much as I try my best to avoid the cheaper stocks, can't knock the $26 base break setting up where we could risk $1 for a move back to $29 in time.
APH is getting tight here under the Blue Sky Breakout level of $69, if this $68 holds up, could be a tight risk entry in a textbook pattern.
Got trigged into CDNS, the proper stop is vs $124, given I will be away for most of next week, keeping new positions a bit tighter.
Got ticked in DIS this week vs $175 and will have no problem adding to DIS if it wants to go after $178 again this week.
Low beta tech name INTC is setting up nicely where one could really give it vs $57 however I will give it the $2 worth of room for now.
Lost money in it the first time, yet the name could barely pull back, will be looking to get back in vs $227.
This is more of an add if you are still swinging MMC, if I were flat in the name, this would not be that juicy of a set up, but since I am already in, I do not mind buying the new high on tight risk to add to my winner.
Talking to Mike as we are the only two still in to my knowledge, we made it another week with a $98 stop, lets continue to give it the room to drift higher.
SNAP finally did something different this week, for 1 after approaching $64, pull back a few bucks while in the past the pull backs were more "bear markets" then the few dollar pull back this week.
Secondly it pushed above $64 and closed looking strong where the last few attempts the buyers did not seem as present.
If SNAP can clear $66 this week, please, I beg of you, hold your winner. Nothing worse then watching a name for months only to give it away literally the day that it starts to break resistance.
SWKS setting up with a nice flag up off of support on tight risk.
We got a nice entry up through $80, for now have a stop vs $78 with the goal to hold back to the prior highs in this massive flag.
ZBRA looking amazing as it continues to hold above $500 as it works its way back to the Blue Sky Breakout level of $520.