I’m writing from North County San Diego…one of my favorite places…grandkids, kids and surfing.
Here are my thoughts this weekend…
A friend of mine told me the other day that he couldn’t keep buying all of the stocks I have been highlighting this year (47) without selling stocks he currently owns. I know exactly how he feels. There is nothing wrong with selling portions of existing holdings to buy new stocks.
There are just so many good set ups I can’t even chart fast enough. I have been charting late into the evening many nights instead of watching one of the many Netflix series I’m trying to keep up with. I just keep finding good looking chart set ups. This is very bullish in my opinion.
Here are some more below…charts are hopefully self explanatory but maybe not. If not, I would be happy to answer any questions you have. I dare you to tell me you can’t see the repetition.
I have a working theory about why every instrument has its own unique repetition “pattern”. I’m not sure I can prove it because I’m having a hard time finding the raw data I need. I’m not even sure the data is available. None the less, for now, I’m calling it “Float Rotation Cycles”. The idea is that institutions, hedge funds, portfolio managers and retail buy/sell at different times during a cycle (bottoms-middle-tops) and their respective basis and subsequent price action influences their behavior in a repeating manner over and over.
I have proven the repetition and how to leverage it but the “why” (beyond the basic confluence of buyers or sellers at support/resistance) is still out there for discovery. There are certainly broader market influences on individual instruments but the repetition remains fairly consistent. It is when the repetition fails that one must insert risk management.
OK, enough of that for now…back to the charts.
I have also included a chart of SPY, the ETF proxy for the S&P500 Index. Price is seeking all time highs established last October and then will seek ascending yellow line. I still do expect a good sized dip soon, however, it appears that after that probability (current trajectory is unsustainable) occurs it’s looking like clear sailing ahead to late 2020.
I especially like big tech but there are individual stocks from many different sectors that are looking quite good as well. Biotech can be risky but looking good too longer term, however, currently in chop chop mode. See chart below of Biotech Index ETF (IBB).
What is occurring reminds me of 2012; just a boat load of good set ups.
It’s all about entries and exits. Currently, it’s a target rich environment for entries.
Here are a few I have been charting the past week…
Wynn Resorts Ltd (WYNN) weekly
(*note earnings release is 4-23-19)
Symantec Corp (SYMC) weekly
Bank of America Corp (BAC) weekly
SPDR’s S&P 500 Trust Series ETF (SPY) daily
Morgan Stanley (MS)weekly
iShares Nasdaq Biotechnology Index Fund ETF (IBB) weekly
(*not yet…chop chop mode)
I have more but that’s enough to digest for now…right?
Now the good stuff…study the attached charts and try not getting too excited.
I wish you a wonderful week ahead.
Gone Surfing, Back Monday.
Don
PS. Do your own due diligence. I am a chartist not a financial advisor. These are my opinions, not financial advice. With that said, these are my opinions formed over 35 years of charting.
Hedge fund and PM’s please feel free to distribute.