Take any hundred people at the start of their working careers and follow them for 40 years until they reach retirement age, and here's what you'll find, according to the Social Security Administration:
1 will be wealthy, 4 will be financially secure, 5 will continue to work because they need to, 36 will have already died, and 54 will be broke living off Social Security and help from family. 5% are successful while 95% are unsuccessful. Care to guess which group had financial planning?
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Broad Market Outlook
If I had to put my money on it, last week would be a short term top for us, looking across most of the major sectors, its really hard to expect much more upside from what we have already gone in these past few months.
With the Iran new's last week, we can expect Energy to continue to work in our favor (less oil, equals higher prices) and Industrial's like Defense to also be in favor as we saw with LMT on Friday.
There are still plenty of individual set up's out there that are presenting great opportunities. This KSU showing a textbook earnings bull flag at all time highs. AMZN is currently forming a new $100 point flag between $1800 and $1900, where we can add up through $1900 down the road, as it continues to work its way back to that $2000 3rd times a charm level.
As the new year is just getting started, set your goals for the year, the main focus is to set a dollar $ amount of profits you want to lock it. Then break it down into monthly and weekly goals to achieve that yearly goal.
For everyone who has done the monthly goal setting, I would like to start setting up individual calls to go over them, if you would like, of course.
In 2019 we set a goal to make $5 million in gains and as a team we were able to get more then half way there, this year I know we will exceed that $5 million dollar goal!
(If everyone set's a $25,000 goal for 2020 we can easily exceed that goal)
Next Trading Experts Meet Ups!
Vermont this weekend!
Macro Rotation Outlook
Just remember how much a weighting Apple has towards the DIA and SPY, with Apple up 100% this year, running into $300, might be getting a bit toppy, and once Apple starts to turn, expect the Dow and SPY to follow suit.
320 stop in the SPY seems like a gift, smart money (big banks) had a SPY 2020 target of 320 as the bull case, we already hit it a week into the year, a pull back would be healthy and if so, we need to smoke that 320. Remember we need to pull back to head higher.
Like Tech below, continue to trail that stop, so we can get out when the tide starts to shift.
MDY Mid Cap Stocks
Mid caps ahead of the small caps by a few months, as they battle with the retest, we have seen the retest of individual sectors breakout, however its a bold ask for the entire mid cap sector, even given the greedy market we are in.
IWM Small Caps
Small caps, still in last place trying to work back to that retest, just need to give it time.
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!
Sensitive - sectors that have moderate correlations to overall market conditions.
New highs tend to get met with new highs, just continue to trail that stop and ride it for all she's got!
Energy getting a bit of a pop on the Iran news, which continues to help the thought of energy being a solid pick for 2020.
Added to Industrial's this week, along with the Iran news, we could expect a bit of a bounce from the energy and defense names.
Telecom continuing to break out of the major base that it has been forming for the last year plus, still lagging the rest of the sectors, so we could still expect this sector to work higher, along with energy, while the rest are a tad extended.
Cyclical - sectors that are more sensitive overall market conditions.
Materials continuing to grind it out, inch higher, pull back, inch higher. While the other sectors have been pretty much just drifting higher.
VCR Consumer Discretionary
188 stop as a mickey mouse flag continues to form at highs.
Mickey mouse flag at highs, time to up those stops so we don't give back the easy move we have been given.
The range continues to form in the REIT space as we are also seeing in the utilities below.
Defensive- sectors that tend to outperforming during sub par market conditions.
VDC Consumer Staples
Staples seem a bit extended up here, a pull back would be healthy.
Seems the run in healthcare is over, its time to start expecting the good ole pull back.
IBB Bio Tech
Bio's losing steam after running into the prior pivot high, we saw this in a few other sectors this week, that the easy run is over.
VPU still forming this new range between 136 and 144, will need some time.
The New Big Picture Set Up
This KSU has been forming a nice earnings flag for the past 2 months and getting as tight as it could get, looks prime for a clean breakout!