Friday’s Price Action and My Golf Game

On Friday, December 1st, the Dow was down about 350 in the morning. It doesn't really matter why...Flynn. The Dow closed the day down 40 points. It doesn't really matter why...tax reform. What matters is the massive recovery of 310 Dow points. This type of price action is usually quite bullish, especially on an intraday basis. S&P500 Index ETF (SPY) daily ​​​​​​​ Stay invested my friends. On another note...If I could sell short my golf game I'd be all in. Like the stock market … [Read more...]

Buy more SPY?

My youngest son asked me today if he should buy more SPY. I told him yes even though price is way above support. Primary support is the lower upwards sloping white trend line. Risk is price closing below this rising primary support zone which is currently about 15%. This is a pure momentum trade. S&P500 Index ETF (SPY) daily I bought more QQQ last week for the same reason. Same with IWM recently. These trades are a tad outside of my comfort zone but the fat lady is still … [Read more...]

The Crypto Craze

100,000 new Coinbase accounts were opened over the weekend to buy Bitcoin, Euthereum, Litecoin, etc. Coinbase now has more accounts than Schwab. Bitcoin is up about 800% YTD. Closed today at $9,250.00. Wall Street is very busy creating products to invest in cryptocurrencies. I would suggest avoiding these products for now as the fees are over the top. Stick with Coinbase for now. Is this a bubble? Maybe. Bitcoin has crashed 50% plus a few times but manages to rock on. So, maybe not a … [Read more...]

Trade Alert

Most world stock indexes continue to grind higher. All is well. Continue to hold open positions. One of my subscribers asked about Goodyear Tire&Rubber Co (GT) a couple of months ago. I recommended waiting for price to fade back into intermediate support. Goodyear Tire & Rubber Co (GT) weekly ​​​​​​​ Price has done just that and bounced. I'm recommending a buy on GT. Closing price on Monday, November 20 was $30.65. Our first target is $36.00. Our risk is closing below … [Read more...]

Jethro, Black Gold and Texas Tea

I recently read an article about Jethro (Hillbillies) and he's still kicking and playing lots of golf. I do like Jethro Tull too. I think I'm showing my age. Bublin crude is gettin' its bid on. Is it time to buy some? Let's drill down a little and test what's underneath the surface. SPDRs Select Sector Energy ETF (XLE) monthly ​​​​​​​ Looking at the monthly chart of XLE it's easy to see the trend from 2003 is upwards albeit with two massive 50% corrections along the … [Read more...]

Evidence based investing

This is a good article by Peter Lazaroff on his take attending The Evidence Based Investing Conference. https://peterlazaroff.com/2017/11/06/highlights-from-the-evidence-based-investing-conference/ You should read it. I'm not sure what is more evidence based than technical analysis with good risk management. Enjoy the read. https://peterlazaroff.com/2017/11/06/highlights-from-the-evidence-based-investing-conference/ Trade Smart, Don … [Read more...]

[Trade alert] The Rip Goes On

Price action is "risk on" as they say. It's time to get more aggressive. But first, let's get rid of XLP, the only current loser in our open portfolio. SPDRs Select Sector Consumer Staples ETF (XLP) daily ​​​​​​​ Recommended two weeks ago and down about 2.5%. This defensive trade is off due to support violation. Looks like money is flowing out of toilet paper and into toilet paper delivery companies...think AMZN...the one that got away...for now. Sell XLP. Review of all other … [Read more...]