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New Financial Planning Story
This week there was a client of mine who mentioned he was saving up some cash for a down payment on a home. He didn't want to invest in the market, for obvious reasons, he needed liquidity in the short run (3-6 months). His goal was to save up $100k for the down payment and currently had around $57,000 saved.
I asked him, what was the cash doing for him? His reply was "nothing, its sitting in my checking account"
Now if you had a checking account pre 2009, you were paid interest, even when I was younger, I remember getting paid 4% interest a year to let me money sitting in my checking account. After the financial crisis, the banks pulled that away from the client however they continue to pocket the interest investing that money that sits.
So I followed up and asked him if he would rather make $1,400 a year or a little over $100 a month to let that money sit in a money market with me, his money is currently doing the same thing at his bank however the bank is keeping the $1,400 as 99.99% of people are not aware of this.
It was an obvious no brainier, if you are sitting on cash for a major purchase or know a friend of family member who is, let me know and there is a high probability that I can help them increase there income. It cost the client a whopping $6 for me to set that up for him.
Cost $0 to earn $0 at the bank or spent $6 to earn $1,400+ in a year, the latter I would take all day long!
(Each week I will mention a relevant story that might be able to help educate you or show you ways that you can take your own finances to the next level)
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Broad Market Outlook
There has been one indicator that we have kept a secret from you and it's not one you will find on any trading platform. It's one we have noticed from talking with traders. Given some of the crazy action in 2018 and 2019 both years where we put in major new highs and also some surprised corrections and even a Bear Market that lasted an entire hour. There was a surprising trend that continued to emerge.
What we noticed was that most traders who cannot hack the up's and down's of the market are perfect at one key trait. They quit right before the market is about to get feasty! We saw at the end of 2018, trader's who weren't in for the long haul, quitting in droves, which gave us the clue to start buy aggressively during Christmas. We also saw this again recently with traders throwing in the towel at its peak about 2 weeks ago.
And guess what? This last week, we saw some great trading, ORB working, buying up off support working, and a steady flow of green days and comma days popping back up in the chat!
I am telling you this now, because you weathered the storm, when others saw that it was raining outside and decided to stay in, you got ready for your run and didn't have any excuses.
Before you or I know it, it will be the head of 2019, set your sights on a major goal to accomplish for 2019, check how much gains you have locked in for the year and set the goal to tack on another 25% to that number!
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Next Trading Experts Meet Ups!
October 2nd NYC
November 16th Boston
November 26th Denver
January 9th Vermont
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Macro Rotation Outlook
Nasdaq
The Nasdaq was leading us higher for most of the year than took a back seat to the Dow, now with Nasdaq being the first to clear new highs, its now the new major market leader to follow.
SPY
This 300ish level is the SPY continues to act as resistance however with the lower highs, who is to stay we cant drift higher?
Dow Jones
The Dow 30 names took the lead in the last few months being the first to hit new highs, however after some of the monster runs this companies have had, they are losing some steam and starting to show some weaknesses under the hood in some names, not all.
MDY Mid Cap Stocks
We can see some higher lows as the Mid Caps are running back into the 360 area of resistance, remember we are paid to buy up off support in a range bound market.
IWM Small Caps
We can see this wide range still in the small caps and shame on me for not re buying up off support to play this range.
10 Year Treasury Note Yielding 1.80%
We can see how were starting to bottom out, also we can notice the sharp run up off lows before the last rate cut, if we continue to inch higher, another rate cut seems to be in the cards.
For the average person, it will not effect there day to day life's whatsoever.
10 Year Treasury 1.80%
30 Year Treasury 2.28%
OIL
If we can hold this 56, there is some hope for the energy sector.
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If you have a friend that can benefit from what you have learned from Trading Experts, shoot me there contact info and we will see if we can help!
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Sector Rotation
Key points
- Best suited in a taxable account
- We are willing to hold positions against us as overall sectors and markets are much less volatile than individual names.
- We are buying or adding (dollar cost averaging) when there are actionable set ups.
- We are selling for either profit or getting out for break even if better opportunities arise elsewhere in other sectors.
- If you have more than $50k, we can set this model up for you
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Sensitive - sectors that have moderate correlations to overall market conditions.
VGT Tech
Heading back to retest 224, we know what tends to happen during the retest.
VDE Energy
So far Energy names have just marginally bounced off this lows, the key thing we need to see is a new pivot high, if not, its only a matter of time before that 72 gets smoked to the downside.
VIS Industrial
5th times a charm up here at this 150 level (if you zoom out more), with some solid higher lows, however it is hard to buy the breakout in the major sectors.
VOX Telecom
We can see how this base has been forming for almost 2 years now, with stocks like VZ and T near highs, its only a matter of time before this sector breaks that 90 level.
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Cyclical - sectors that are more sensitive overall market conditions.
VAW Materials
Higher lows and a clear line of resistance, the materials are starting to show a glimmer of opportunity in time through 130.
VCR Consumer Discretionary
We can see lower highs and higher lows forming in the discretionary, time will tell who will win this battle.
VFH Financials
This 72 has been resistance for longer than most have been members for, eventually this breakout will come, when most are not looking.
VNQ REIT
94 Stop
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Defensive- sectors that tend to outperforming during sub par market conditions.
VDC Consumer Staples
Staples are starting to flag at highs to digest the run they have been on all year.
VHT Healthcare
173/174 are the resistance level that we need to see break however its hard to be a buyer of resistance in a major sector in this market environment.
VPU Utilities
144 level is creating resistance as we can see with the most recent retest.
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Sub Sector Rotation
IBB Bio Tech
IBB continues to trade in this range, as its starting to become clear, the move is to buy when its near support. The hard part is that once it becomes obvious those opportunities tend to not pay as much as we would like.
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The New Big Picture Set Up
EXPD
This EXPD is giving us a chance to grab an easy feeler above 76 so we can have some stock to be ready to buy 78 when this bull flag is finally ready to go!
Stop $73.89
Feeler $76.05
Entry $78.05
Target $100+
