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Broad Market Outlook
What a week, the S&P 500 hit a record new all time high this year for the 50th+ time.
The market also put in a doji at highs at the major retest, the obvious sign of indecision as (smart) investors do not want to be buying the top tick.
Now other then what we know about retests coupled with the obvious facts about doji's at highs. Our mind still tries to find excuses as to why this time is different, when in reality it rarely if ever is.
We saw some insane PnL numbers this week and even on Friday members putting up some of the fastest triple digit returns ever achieve in the Alpha Chat.
Gina deserves a round of applause for buying this wild name under $16 locking it for a 700%+ gain in less then 16 trading hours. Someone has to buy the low and sell the high.
As much as I would personally never touch this name (I would much rather holding SNAP and INTC into earnings and give back 20% and 10% respectfully..sarcastically speaking).
Hearing from those who were all in this wild name it was refreshing to hear most had a similar approach:
1. Knew it was a wild name
2. Limited there risk (buying small)
3. Took profits and got out quickly
They made there money and moved on, now this trade was a rule breaking trade from what we tend to avoid but ever once in a while a rule or two needs to be broken to achieve these wild returns.
But we want to remember that continuously breaking a given rule tends to lead to costly new habits.
If you find yourself trying to find reasons to buy SNAP after the gap down, or trying to sneak back into DWAC in the hope of another 1,000% run, or discounting retests and dojis at highs in your winners, the result is often giving back profits that often are much easier to just lock in instead of hoping for more.
As the old saying goes "a bird in the hand is worth two in the bush"
With this doji at highs in the market and everything looking rosy, this is the time to tighten up, play defense and avoid drinking too much of the this time is different retesting kool aid.
From Ben G
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Once you order, we will send the cost back to your card on file!
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Macro Rotation Outlook
SPY
Dow Jones
Nasdaq
MDY Mid Caps
IWM Small Caps
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Do You Have The Patience to Make It On the Leader Board?
Congrats to Gina for making the list!
Or the PnL?
Congrats to Erick for jumping into the 5th spot!
Email a screenshot of your YTD PnL or your best trade to be added!
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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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"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!
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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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New Video Lesson Playlists
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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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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!
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Big Picture Set Up
AFRM
When we are in winners, our judgement can get cloudy when everything looks rosy yet we want to remember what is often the wise thing to do at a major retest?
Further more, if your friend asked you what to do when said stock was at the retest, formed 5 doji's at highs out of 8 days, with one of those days being bearish engulfing. Your obvious reply would be "take profits!" Might be wise to listen to your own friendly advice.
AMD
With AMD up 22% in 2 weeks into the retest with a doji at highs, it seems to be the time to start looking to take some profits.
CERT
This CERT has been flagging out under this $40 all year and for a recent IPO we want to be ready for this blue sky breakout when its ready to break that level.
DRI
After months of flagging through this $150 area, they took it away on earnings but now that it has pulled back into the flag we might have a sneaky buy back on our hands.
ELF
This ELF has been setting up for nearly half a decade for a breakout up through the IPO highs of $32.
ETSY
As ETSY continues to inch towards the retest of all time highs, it will be time shortly to look to take some profits from our last rebalance area a few months ago.
MDB
MDB still showing us a nice earnings flag up through $520 in time, with all these dojis at highs would not expect much out of it in the short term but one to keep on the radar.
MMC
MMC continues to drift to new highs and for now we can see a clear pivot vs this $150 area for the last of this swing.
SNAP
With everyone expecting SNAP to continue gapping higher, they had to gap it down to screw and trap most. Which should not come to much of a surprise to us, as the collective opinions leading up to the report where only outcomes that were higher, this is a good reminder that just when we think someone has to do something. It often has to do the exact opposite.
With this being one of my largest individual holdings gave back quite a bit of open PnL yet not much has changed. From a short term trading standpoint SNAP could not be more off then radar, below the 200 day with a big gap to fill, it will need plenty of time before it will be ready again.
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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!
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