I talked during the week of my free After Hours trial about watching for a rotation/move in retail. Since then, there were three different days where retail stocks were creeping to the top of the performance lists. Now with a few favorable earnings reports, retail stocks are breaking out left and right. $XRT just broke away from it’s YTD trading range today.
I also spoke about watching transports for this same type of move. The real opportunity was a few months back when the bullish percent hit 15…but there are still many stocks that haven’t quite broken out yet. We’ll probably do a top down tonight on After Hours to discuss this.
Other than that, I am a pig in shit today. My style was built around these conditions and they’re working to perfection.
Top ideas here: $NOW, $MBLY, $USG
More later,
OA
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XLU flashing warning signal for the bulls. Added to BIS 31.63
This is supposed to go lower. All the guys left holding their dicks in defensive names while the market transitions to offense mode. They did the same in 2013.
$XLP too, especially after many of these stocks hit enthusiasm earlier this year.
I’m literally paying my utilities being short utilities
Agreed on rotation out of defensive. I am dialing up some MCD Oct puts.
BKX and XBD made lower highs that earlier this year and could possibly be rolling over. Leadership is very narrow and only a few stocks like BABA and TWTR are trading. I will be more open to the prospect of continuation / higher prices if we were to see renewed strength in the financials. Until then, there will be plenty of opportunities on both sides with a growing number of opportunities on the short side until the excess is worked off either by time or price.
I’ve been watching this group and it’s pure staples constituents (PG, CL, K) for month looking for a short entry. It’s nearly impossible to trade, I feel like the owners of these stocks just never fucking sell no matter what happens.
TWLO is killing it today! Picked up calls yesterday. Thanks OA!
Burritos killing it again today. I expect to take out the highs this year for the big win.
How does one price target a stocks like $TWLO here? Fib Extensions I suppose…
The fuck are those…lol
http://www.investopedia.com/terms/f/fibonacciextensions.asp
Yet one more TA method. I wonder how many of these there are. Dozens? Hundreds? Most TA methods must rarely work, I would think, although that one or two times they work, really convinces people. Unfortunately there are so many interpretations and subdivisions within methods, that it would make it hard to backtest them all on trading software. But it should be done, to the degree that it can be, if it hasn’t been done yet.
Sorry, I was joking about that. I’ve studied all the indicators, books, manuals, etc. I had to teach “advanced technical analysis” to poor folks that spent tens of thousands for trading education.
LMAO. I love how he linked to it like you didn’t know.
I figured you’d probably heard of fibonacci extensions, but included the investopedia because there are surely folks on the site here who haven’t.
If anyone here knows of anyone who has done extensive testing of all these TA methods out there, please let me know. I’m curious.
However, since, for marketing purposes, it makes it easier to be vague about if methods are effective or not, perhaps testing has never been done.
Once at a trading seminar I met some students from a big day trader training school in my area where people paid big bucks to learn. I was introduced by a group of guys to their star trader, who did better than anyone in the school’s history. I said “How much did you make?” He said “I broke even.”
BTW, it would not be out of the realm of possibility that an excellent trader would not know, or remember, one of the many TA methods out there. There are tons of them– and most of them usually don’t work, so there is no point whatever in knowing about those.
Sorry, hope that didn’t come off bad. I like to poke fun at indicators and such. I appreciate the link, wasn’t trying to sound like a dick.
its getting a bit too easy to make money in this market on the long side..at least for a trade..i’ve had like 6 winning trades in a row…somethins wrong
the bear needs to be fed soon or the pig is on its way to a straight up, vertical move that may just make the history books
Remember who told you first.
You da’ man, Jeff.