My earlier long-term ideas in this blog have been the likes of Wal-Mart last October, Discover Financial Services last December, Target last February and, oh yeah, MasterCard in March 2011. While I am predominantly a momentum-driven technical swing trader holding for days or weeks, these long-term ideas have performed magnificently. Now, go ahead and put that real-time, timestamped analysis up against any of your gurus of choice on television or in the Hamptons houses. Yeah, that’s what I thought.
Setting the bar high means you can either shy away from the pressure or embrace it. I believe that I have built a widespread and loyal reader base in recent years despite being out of the loop of the cool kids in the finance world because I don’t much care about seeking anyone’s approval. I call the market and the psychology of trading and gambling exactly as I see it, letting everyone else jockey for popularity contests and rubbing elbows at summer houses. It’s easy to talk to a big game about being a leader and innovator, but most people cannot even lead themselves. Think about that the next time you see some wannabe alpha pup post a few blogs talking a big game, only to flake out within a few months, if that.
Turning back to the long-term ideas, take a look at the Pepsico, Inc. monthly chart below. We see another massive symmetrical triangle that we observed on DFS and MA before their respective major breakouts. However, as Edwards and Magee wrote, triangles are the most typical type of chart pattern that often morphs into a larger pattern. Thus, I want to see PEP at least clear $72.50 to get me really thinking major breakout. Nevertheless, with their strong brands and global growth prospects, the time may very well have come for Pepsi to make its next move within its secular uptrend, up above its early-2008, all-time highs.
Note that earnings are scheduled for 07/25.
14 Responses to Long-Term Idea: PepsiCo, Inc.
damn you’re good is trading stocks is more fun than poker or its just the long hours on the poker table u dont like?
I put my ego aside with poker and realized a few years ago the poker bubble was over. The easy money had been made and if I stayed playing full-time I would have been basically on an ego trip, playing in tougher cash games (compared to what we saw early-middle of last decade).
v.good answer liked =p
If you had to recommend just ONE book on Poker … what would it be ?
Kinda thought it might be one of Sklansky’s books !
great pick here chess, I was looking to go long this one in the $68 range I think? Did you see the unusual volume pick up around then? on $PEP
I could see that. Probably not a full position yet, but can layer in.
I have been a loyal reader since you started bloging. Over that time you have written many awesome posts. This one is by far my favorite. The second paragraph for lack of a better term was Livermore esqe. Many thanks.
I appreciate that greatly. Thank you.
Your well deserving of it. Many thanks for the awesome work you do.
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