Active Trading Strategies | Pat Mullaly, CMT | 9-29-20 | Scanning For Strong Stocks in a Weak Market
Are you. Ready to take action, after a correction. Do you know what some of the things you might want to look at. After a correction to be ready, for the next move, stick. Around. Hello. And welcome everyone this is active trading strategies, i'm pat malali, i am back from vacation. And it's great to be back, uh in the chat, room, of course we have, everyone there plus barb armstrong, to help, out, answer your to answer your questions as well another instructor, here at td ameritrade. Um so i want to say or another coaching, instructor. Uh hello, and good morning good evening good afternoon depending on where you are, to cj, to, uh chateau. To. Joseph. And, lewis and ray, and. Whoops i'm moving things don't mean to move things. Uh. And, everyone else out there mike. As well, as everybody else that's in, the. Uh, listening, to the recordings, to the archives, welcome. And um. Please. Don't hesitate, to ask questions, as well, let me uh get rolling here uh number one uh you can follow me on. Twitter. At pimalali, underscore, tda. And you can follow barb. On twitter at b armstrong. Underscore, tda. Now the whole point of today, is that you know many investors, they, lament. Uh the the fact that they, were going to. This time. Uh you know follow. Uh their, uh their uh. Strategy. Follow their plan. And uh take, uh take action, when it was appropriate, after a correction but corrections, content. Have a tendency, to, uh maybe, cloud up our uh. Our. View of the market and we oftentimes. Uh may miss, taking. Taking action when we should take action not that the correction, is over. But always needing to be prepared. To take action remember it's a market of stocks oftentimes, not a stock market so some stocks, may hold up strong, and move, well so that means uh we are going to look at some things, here, shortly but first we're going to, remember, that. Everything we're doing here is for educational, purposes, only. Not, for. Recommendations. Uh, and, uh. The. Demonstration. That we're going to put on today or the the webcaster, put it on today, uh we're going to use actual symbols for the functionality, of the platform but that does not mean td ameritrade, again is not making any recommendations, about the suitability, of that security. The suitability. Of the strategy. And any investment decision that you make in your self-directed, account solely your responsibility. Past performance. Not indicative. Of future. Results. All investing involves risk including the risk of loss. Of money. And uh so zero commissions, apply to online us exchanges, to stocks etfs, and. Option, trades, but option trades do carry a 65, cent per, uh contract.
Uh Fee, so, you do have that no so listening photography, no part of the presentation, we've copy recorded, without prior content. Consent. From, td, ameritrade. Uh, all right. Let's get out there, uh and just, start to discuss, how to define, some strength, when we're going through these corrections. And, to do that we're going to then build a scan, using rs i'm going to add, a little bit of a fundamental. Bent. To, our. Ideas, today so we're going to look at some eps. Add some eps numbers for strength. In, fundamentally. Looking for fundamentally, sound, uh, stocks, as well, so let's get out there to our. Webpage, here first and foremost let's take a look at uh. The. I got to get my drawing tool. First and foremost, let's look at the. Sectors, and. We know the market, is down here's the s p futures, they are down, here's the s p itself, down, uh about six tenths almost six tenths of a percent but this week or the last five, days. We've seen a bit of rotation. Back into those. Uh, those sectors, those uh that were very strong. Uh that's discretionary. That's technology. We're still seeing industrials. And transports, hold up, so that is still indicative, of uh the market, may be, perhaps. Considering. Things out into the future to, not be so, bad. Uh let me collapse, this now. And, we have the s p 500, here, and uh. Last. Not last friday but the friday before that in the in the friday before that so three, uh fridays, ago we started looking at. Trying to identify. Low risk areas, or where the market may. Be making turns, and as we're seeing here. I still have the. Oscillator. The mcclellan. Oscillator. Up, and we have the, conviction, indicator, up my conviction, indicator, so we reach down. To the 11 area not quite. Is you know is, capitulationary. That's a word now. As we'd like to see not we'd like to see that below 10. But again in corrections, you may not see that but we did see, the oscillator, dip well below, the negative, 150. Area. And, when that occurred. What we see, is if i draw a line straight up here. And then along. An arrow up here. We see that there was some strong.
Selling, That was met with. Uh, maybe a little bit of sneaky, buyers, coming in there some sneaky buyers coming in perhaps, we're seeing, uh people that are willing to, uh, start, putting on positions. Uh, in pickup, shares as the market sells off on, uh, on. Weaker. Buyers. Less. Less buyers than there are sellers, and that's what we look for now. Again, we could see a. Uh. See the market. Re-uh. Test. If you will that oftentimes, happens and especially, since we are going into. Uh the election, and and we are going to start going into the debates. It wouldn't be a surprise, to see the market correct and it may even reach down. Into this 200. Period, moving averages, 200-day, moving average this is a, six-month. Daily, chart meaning each one of these bars is a day, so we could see it as far down as. The. 200-day, moving average but again. If that's the case and it rebounds, there that's not that far, below. These old, uh areas, of. Support, these recent areas of support i shouldn't say old. Just yet. Because, this area, right in here let's draw a. Square around that a rectangle, around that. And then draw a support, line across the bottom, and the reason we're doing this is we're trying to identify. Uh str. Uh, layton or, nascent, excuse me strength. In the market, sitting underneath the market, and uh, watching the oscillator. Uh the earlier this morning, the oscillator, was looking, uh pretty good moving the mcclellan, oscillator, moving back above zero. Uh but that quickly turned south as we're seeing. The conviction, indicator, sitting around. 29. So, sitting around 29. We're down about a half a percent so that's actually. A little bit weaker, as far as the buyers go than we like to see again, you've got debates, tonight. And, uh, it's going to be interesting to watch the stocks and see, what happens, to stocks, like. Micron, who has earnings, out tonight, and, they are uh. Right now being buffeted, around by, uh, the, huawei. Issue, uh as far as being able to sell their chips. Uh to huawei, which. They. Cease to be able to do that as of the 14th, of this month. So we'll see what the you know the the solar stocks, and those types of things see what they do, afterwards, so right now, still not getting any uh. We're still not getting any. Huge. Push, to the upside what we'd like to see. Is. The. Oscillator. Get above 90, or put two, 80.
Days In a row. Um, that would be good and, when we're looking when we're talking about the conviction, indicator, down in here that's what we'd like to see. With the mcclellan. Oscillator. Ultimately, getting above, the 150, area that might be a good all clear, signal, or. Not a hundred percent, of course. All right. Now. Let's talk about some things we're going to look first. At. Active. Active. Plc. So what does plc, mean, it means. I would have to ask that question because now i for i forget, i always get that one wrong, uh but active. Is, uh a um. Or plc. Typically, means that they're in ir, in the british isles in this case ireland. Uh, and they are an automotive. Uh. Uh company. That designs, and manufactures. Vehicle components, what does that have to do with anything well, what it has to do with some things is when we look at. This from a technical, area when we look at this from an uh a, a. Reason, to be active. We're going we're gonna put in, some things that that we want. These requirements. We want the stock to meet certain requirements. And in this case. The stock does it it has an eps, of. 20 or better. And. Earnings per share so we know it's strong. If we look at, this, uh kind of take it into the microscope. If you will of. Technical, analysis. Here. And. Look at. These highs, recently. We saw. And that's, not getting a lot of, there we go. Look at this volume, in here but what we've got here is we want to see. Stronger, volume, or, uh. Accumulation. Of volume on big up moves we want to see it as, something is stronger, than the rest of the market, and we want to see and this is what we're going to look at today this is an idea, something, to. Consider. We want to see, something. That has. While the market, has, been correcting, the market, dropped 10 percent. That's a pretty good correction. When we look at active. And we look at the rsi. Right here i'm going to draw this arrow across here, that's the 50 percent, area. You can see aptiv, really, struggled, to get, much, below, 50 percent. And so that's showing us that we really never lost too much momentum, to the upside so that's a good. In, theory a good thing so what do we have, going for us what are we going to look at we're going to look at. A. Uh. A an rsi. And i will try to draw this so you can read it, good luck with that. Rsi. That's. Maintained. Uh, a, 50, area, maintain. 50. On a positive. Basis. Okay so that's this down in here, maintain, 50 on a positive, basis we want to see, that the relative, strength. Is outperforming. The s p 500, and we can see here, it's outperforming, the s p 500, and recently of course with these, strong, up days. Uh, out, well outperforming, the s p 500. And we want to see some accumulation. Of volume. Which we do get here. And not it's up to this 50-day, average, so it's it's. Still average but still strong. On a daily bar, on an aggregate, basis. It's picking up some strength. So. What, what would be the next thing we might look at here. Well, we look at price so let's continue to look at price let's dissect, this a little bit and then we're going to look then we're going to go, build a scan. Uh to uh, to, start developing, these ideas, because the, the purpose, is. The market, still may be weak and if the market's still weak we might see stocks that break and run, run to the upside we might see stocks that stay, you know that struggle to break and run to the upside, probably better to buy on dips. But we want to we want a list of stocks. We would probably think a list of stocks that's stronger, fundamentally. And stronger. Uh, relative, to the market, and stronger, with the rsi. Relative, to itself. Meaning it still has momentum, hasn't lost any momentum. To have a lower risk, idea. So i'm going to draw a line right across these lows here. And then let's take a look at what we've got here, so we see that price. Bounced. From this area, here. It bounced. Here. Here. Penetrated. It. Gapped, up the next day. Came back down held. Penetrated. Rallied, that day. And then that was four days ago and now pushing to the upside, and now meeting resistance. It's meeting resistance, back, all the way back from where it pulled. Uh, pulled in. Uh. All right. Here we got some action there, all right so how do we build this um. How do we build this uh uh. Scan. To find stocks, like active, so what we're going to do here is i'm going to come up, to the, scan, tab.
Right Here. Scan, tab, i'm going to click on that scan tab. And that's going to take us. To. This area, right in here and you can see i've run. A scan and it's still building things in here apparently. And. So this is how the scan is going to work this is basically, so, i'm still, using. A couple of things that you've seen before and there's a reason we're going to use that because we're looking for strength. And those things we're going to use, that you've seen before. Are going to be. The rsi. Study, rsi, scans, we're going to use two of those. The lengths, are going to be 14.. Uh, but we're going to have a greater, than. 55. And a less than, 65. So in other words we don't want something that's really busted, out and it has, moved really strong we want to find something that's held up. But maybe getting ready to move, maybe getting ready to move but. In this situation. What we're looking for, which is something to always consider. And that's why you might want to consider some of our fundamental, analysis, classes, with mike, fairborne. Uh, and, uh. Building a portfolio. Uh. A self-directed, portfolio, with barb who happens to be in the. In the chat room right now but we want an earnings per share. Of. A minimum, of 25, percent now how do we do all this. So what we do here. Is uh. I'm going to come up here and i'm just going to reset, all this, and. Rebuild, it, so i'm going to reset. And then what we'll do is we're going to come over here to net change for anybody that's new anybody that's new. Watching, the. Uh. Archive, or watching the. Recording. And i'm going to put, stock, close, in there, and the reason i'm doing that is just so that we have, uh. Something that's not too arbitrary, it's closed, and it's a, minimum, stock, price. Price. Closing, price. Of twenty dollars. Twenty dollars so i change that minimum, to twenty. Volume. Uh now that's up to you you can use a million shares. Uh. So we can get a. Find maybe some growth stocks we're going to use 250. 000. Uh shares, you can use 500, 000 you can use a million that is up to you. Sometimes, you in these scans, you can get. You know, you know 300, 400. Stocks, so you may want to. Filter that out with with higher. Volume, for the day okay, so and then this next one percent change we're just going to get rid of that the way we're going to get rid of that is going to come over here, to the right side and we're going to click that x, and we're going to get rid of that. And then we're going to add some things and the way we're going to add some things is we're going to use. The add, filter. Tab over here, and tell it what we want to add. So i'm going to come up here to add filter. And, when we do that we're going to come down to study, now, what study does is it brings us into the technical, analysis.
Types Of studies when you hear the word study. It's usually some indication. Of. Volatility. Study, technical, analysis, study different types of, breadth studies different things like that, so we're going to click on that. And then i'm going to, come over here to where it says adx, crossover, i'm going to do this two times so you get the, get the idea we're going to click on we're going to come over here this study, adx, crossover. And we're going to change that by, uh clicking, on the little, down arrow here though, and, dropping down into popular, studies. And coming into, rsi. Scan. Rsi, scan we're then going to leave. Uh this, at. 14. And this is where we're going to change the greater, than. Uh, tab, we're going to leave the greater than tab there, so this is going to stay there, but we're going to change that 70. To 55. Why 55, because we want something. That's, above, 50., remember the idea, today, is to find, something. Stocks, that have been holding. Their momentum. In the face of a market that has lost its upside, momentum, we want to look for that upside momentum so we're going to put in 55. Here. And then we're going to come up uh into, the. Add, filter. Once again. And we're going to come down to study and we're going to do this again, so the same thing we're going to come down over here to the adx, we're going to pop down into, popular, studies. And then we're going to put in rsi, scan. The difference, on this one is going to be we are going to change greater than. To less than, and we're going to change 70. To, 65.. So greater than, goes to less than by popping down the. The window, there. Less than i'm going to change this to 65, because we won't don't we want things of just starting to possibly, trend, but not have been trending. So we can change that to 65.. But. At the same time, that's that's, great, fundamentals. Or uh technical, strength but what about fundamental, strength so, well, this is very this is simplistic. So please. Bear me with me on this. There's. Again, uh, it's not for the those that are more, fundamentally. Set. This is just going to be one. One thing that you might look at as far as management, strength. Uh company, strength, and you know there's many other uh. Things that you can look at many other, multiples, that you can look at so we're going to come back here to add filter. But this time we're going to say fundamental. Add filter come down to fundamental. And then over here where it says, book. Value, per share. Over here, we're going to change that. And we're just going to use just, again. Simplicity. And i would suggest, that you. Uh figure. You know use what you feel is best for you, but we're going to pop that window down. And we're going to scroll, down. And find earnings, per share. Now you can do trailing 12 months, you can do earnings push i'm just going to click at earning per share, i'm going to leave it at current, and i'm going to put in, a positive. 2 5.. So that's just going to be, the number, 25. And hit enter. Now that we've done all that what do we have we have, fundamentally, sound company, according to earnings. And we have, a greater, than momentum. According to the rsi, greater than 55. And but less than 65, it hasn't gone, uh totally, you know out of, range, to the upside. And the market's, in a uh. In a correction. And we click, the scan, now once we click that scan. Uh, it pulls up. These uh. These choices, in here again, you can adjust that and get there's 33, of them that we can see over here.
33, Right in here, you can change that. Lessen that by you know changing. Your fundamentals. Changing the amount of shares. Changing the share price whatever, you want to do to filter it out to less shares. And then we're going to save this scan so i'm going to click over here. On the. On the big uh. The pancakes. The uh whatever. These things are called the hamburger stack the cheese stack the pancake stack. Uh, i'm gonna click on that, and it's gonna say save, watch list we're gonna click on save watch list, and we're going to call it rsi. 55. Dash. Or uh you know space 65. Whatever you want to call it, and then i'm going to put eps. 25. And i'm going to give it a date, just so we can follow along. Uh 9. 29. And, then i'm going to hit. Save. Now i've done this once. Today. Uh. Let's do. So it saves this different one here, um let's save that and then we're going to pop back over into our charts. We're going to pop back into our charts because then what we're going to do is, to make this fairly, simple. Uh what we're going to do is we're going to. Pop down a watch list now this is the previous, one, i did we'll add we'll just look we'll just add the new one in, so we're going to come look for it over in here so what did we do, we popped down the watch list. Tab. Where it says rsi, 5565. You'll see i have a lot of those in here. But we're going to look at, rsi. 5565. 25, 9 29. 20.. And now we, have. This uh. This watch list in here, of the 33. Stocks, that pulled up in there, and from here we can we can click through all of these, uh to find, uh to find stocks that meet, those. Requirements, we might uh, looking for. And yes thanks barb. Some things. Now this. Platform, i'm looking at here, it has all the functionality. Of, a live money account if you're in your paper money account. You may not have, all the functionality. Of a live, of your live money account. Uh so, um. You recognize, that a lot of these scans, are built, for, you know actual. Uh decision, making, so that's how i found active, and you can see active right in here. And uh, let's uh, let's. Go back over here to uh. To. Uh, uh. Draftking. And. Let's uh change this link so what we're gonna do here, is going to click through. Some of these. Uh some of these stocks over here so you can get an idea. Of how. They, of what you might be looking for. And then down here i'm going to change this study. That we have down in here i'm going to come over here and click, study, because i want to look at. The, uh. Relative, strength. Rsi. With the 20 period exponential, moving average. And this goes back to another. Uh another session we talked, about. It's very small range days over the last four days. Uh four to seven day days if they if the if you have really small range tight days. And then they turn into long range days, that might be, a catalyst, some form of catalyst, that's changing, and we're getting that change so we're going to, change, the studies, up in here so i've just saved it in studies. Down here in load study step sets so i click on studies, come down the load study set, and then i look for relative strength rsi, and 20-day, exponential. And boom. There we have it, and we can start up here. Now that we have. The uh. The. Links. When we have the chart and the watch list linked together. By clicking, on, uh. That net right next to the, symbol. And clicking, this right next to the, watch list, and if you've never seen this before the idea here. Is that. If i click that you notice that, the top these, two things.
Look Very similar. But i want to. Connect, it. To, the chart, so if these are all unlinked, i can come up here, pop this down go to, make that red number one or whatever. Number you in color you choose. And. We'll make this one the same red number one, and then i can just click on these and click through these. Looking, for. Things that define, what i'm looking for strong. Stronger, volume. Relative, strength that's strong. This one. Quadell. Is. Becoming, stronger. It has had it's had some issues. A relative. Rsi, is strong so we must move through that. And when we look at um. Ncr. Now we can look at this and say wow maybe there's some changes going on at ncr, if we start, to, really look at. What's been happening, here, it's. Once, twice. Three. Four times, fifth time. Up into this area. And then price. Has. Also. Shaking, some people out. Down in here you can see that there's a shake these shakeout, areas where, price, has found some, support. Found some, demand. Coming in remember, support, is demand. Resistance. Is uh, is uh. Supply, or selling, okay so demand, supply and demand, that's what we're looking for here, and so this one looks interesting. Uh it is um. From a uh. From the, channel perspective. Uh certainly, doing, getting stronger, and if we look at this from a uh, price, pattern, perspective. If i can get this to draw. We can see that it is. Finding, this uh, finding a bit of an uptrend it's still got some work to do, so you can just continue to move through these. Looking, for, uh stocks, that, might meet your criteria, looking for stocks that have been strong. In the past, that have been pulled back with the correction. And, as well so, we can just click through all of these, and that's how, you would uh. Find, and build a watch list because why do we want to build a watch list, because the market. As corrected. The market has corrected. And uh right now it's trying to come off of those lows. Uh could it come off the low, sure. Do we have any um. Uh. Do we need to wait. Any reason. Any mandate, that says we have to wait for the market. To break off of these lows, not really not necessarily. Because again some stocks, will move, ahead, of the market, and that's the idea is to get out in front, of the market so i've put some of these, in the charts here active. Being one of the the stocks that we've put in here. And so with active. If it meets all the criteria. Which it does good earnings per share. Strong, momentum. Uh good relative strength but it's at resistance. So, you've got two decisions, to make depending, on, how you want to do things with a corrective, market. Uh it may, be better to let, this price pull back in. Now it won't necessarily, pull back in from here, it could break to the upside. We could see it break to the upside. And then pull back. The idea would be to. Have it. Find, uh some strength, at some kind of support. Or pull into the 20 period exponential, moving average on small range days. And hold, and then rally, because these are different things you can look at, in the past in the archives, that we've done, in the past let's look at another one here. Neo, okay so here's neo this is one. That's um, moved, up the list. On. And this would be my caution. This is a, number one it's an adr. What's an adr it's a a. Stock. That trades. It's a chinese, stock that trades on an exchange, here. And. That means that it's. Can be prone to. Political, uh you know country, risk. Currency, risks those types of things so just know what you're getting into this you're gonna have adrs, from europe you're gonna have adrs, from south america.
And So on and so forth but this one. Looks to be, you know it looks to be, meeting, all of the criteria. That we've been looking at. In other words. Stocks in an uptrend but you notice. It's stair steps. Step one. Step two triangular. Step three. More of a a. Dip, type, base. Pattern in here really a flat base. That dips down really kind of maybe getting a little bit triangular, here. But it does have stronger relative, strength. Uh as we can see. If i draw some lines underneath the relative, strength. In here. And, you can see this blue line that dash line down here, where pro where the rsi. Has really. Is not. Really. Penetrated. The 50. Area. For the uh for the longest, time. And so it's just showing us that there is a lot of momentum, there so this might be one, that you would put on your watch list it could be one that you, may decide. That you want to buy it today because it has it's. If you look at the volume, down in here. It's breaking, to the upside, if you were to. Look at it this way, right, breaking that diagonal. Uh trend line it does have. A diagonal, downtrend line it does have, a, a. Bit of resistance, to get through up here where it's failed. On the on the run. And then failed, on the retest. Again that comes along, with, the end of. August. And the market pulled back as we're going to see, a lot of stocks, also pulled back but when we look at the. The. Rsi. The volumes, today, we still have a lot of time left in the day volume, will probably. Uh, very likely penetrate, the. 50 period moving average so strong volume today, somebody might go out there and say well. I'm going to take, and uh i'm going to look at possibly, buying. Uh some neo, they could do that right now you could wait to the end of the day. Uh but it is a breaking. That. Downtrend. And. Really kind of getting above. Uh the fulcrum. Area if you will. Meaning, areas that it struggled to get above. Inside. Of the consolidation. Area let's get rid of this first here.
Remove That, and you can see all the times it's been. To, this, black, dash, line. Over the course of the last couple of months. And now finally. Looking like it wants to break above that on some good volume. None of the times. That it has reached, above that line. Has the volume, uh been on the upside. Been as strong as what we see today so that might be something somebody might, consider. Uh in an idea. To make a trade so we come over here to neo. And you can do, options. Uh remember there, are. Fees that go along with options something else you want to check out when are the earnings. And so the last earnings were in the beginning of august so earnings, probably. Not for a uh, not for a while. So, for an active trader. You might look for, some kind of anticipation. That they're going to outperform, in earnings. Uh they. There was some news out on these guys today that, uh was uh. A, little bit bullish, according to, what you read in the news but don't believe anything you read, or hear, and only half of what you see. Please. You know, please, just recognize, that. There's a lot of, reasons for a lot of people to say a lot of things that. Maybe aren't true. And then fake some things, as well from these days from what you see so let's go back over here and we're just going to come in here we're going to, left click on the ask but if we're going to buy this we probably, want to know. Where we want to get out, so what makes sense to us. Uh, the sense, to us might be. If it if it retraces. And gets below. The low, of the 24th. If it gets below the low of the 24th, and you're inclined to call this. A triangular. Type of emotion. Right. Motion, not emotion. But a triangular, type of motion. Uh the getting below this point in here, might be an indication, that there could be some. A little more risk coming around, it is pushing above the 63. Or above 60, so that's oftentimes. Considered. A. Possible, trend. Uh, indication, so let's come over here, and uh, we look at this low here, and this low, says. If we look at these. Numbers that are changing, up in here we look at the one with the l open high low close. Uh the low of that day. Is. 16.75. So we're going to put. Our stop. About one percent. Below. 16.75. Which is really only going to be about, 17, cents below, that let's say. So. Let's put it at six to put our stop, at 16. 60. we'll go 15 cents below that low 15 cents below that low to get out, and we'll buy, on the market, uh right or on a limit order right now so. 16. 60, on our exit we're going to come back over to the trade tab it's real simple to do this, we're just going to come over before buying stock we're just going to right click on the the ask when it come down to buy with, custom.
With, Stop. And, then we want to double check some things so what have i left what have i forgotten, here, what are we trying to do do we just go out and buy 100 shares it's a 20, stock. Well maybe if you only have, ten thousand, dollars, in your account maybe that's what you do. Uh, maybe. Uh, with with that kind of a stop, maybe you buy, less, right maybe you buy more but we're going to risk a thousand dollars. So if we change our stop down here, to. 16.60. 1660.. So if we've changed our stop. To 1660. We get in it at 20. Or 20, uh. 2020. That means our risk. Is going to be. Three dollars, and, eighty, cents. So three dollars and eighty cents. Risk. Is going to tell if we take. Three dollars and eighty cents. I hope i did that. Right. Three dollars and sixty cents, so three dollars and sixty cents is going to be our total. Trade risk what we're. Willing to let the stock drop before we get out, then we're going to divide, that into, how much, portfolio. We're willing to lose how much of our dollars in our portfolio, are we really, willing to lose. On this and we're going to do that by taking. One thousand dollars, dividing, it by, three dollars and sixty cents. And that says. Is that right. Yeah that's right, um. Uh we can buy, 277. Shares, now, it's just now. Trying to. Um. Break, right. 277. Shares is what it says we can buy on a total position, but it's just now starting to break we know, uh, just by looking at this chart. That, oftentimes. When it breaks, it pulls back right runs. It pulls back. It breaks, it pulls back, so we may want to just, try to get with the flow, right, stocks. Are like waves. You're on the beach, right and the waves come in they come to your toes, they go out they come back in they come to your toes they go out they come back in, they hit your toes they go out they come back in and they're up to and suddenly it's up to your ankles, or maybe higher right so we get a bigger wave, so we should probably, err on the side. That there may be. Possibly, a strong wave to the upside, but more than likely it's going to be a, small wave, pull back small wave pull back, just back and forth, before we get a bigger wave. If we get if we get lucky, and it just runs, like, uh you know like a a. A. Electric. Car. Kind of what they do after fashion. Uh, maybe, uh. With that kind of torque maybe so but 277. Shares, we'll come in and we'll buy half of that. At, uh. 185. Shares. 185. Shares to buy. 185. Shares. To sell. If it drops, to our, 1660.. And, we unlock that. Make sure we're in the right spot. Limit, order. Day order should get filled we're still going to change it to good till cancel, change our other order till good till cancel, hit confirm. Double check everything. And look at our you know. Possible. Fees that may go along with things. And then we will, send that off, okay and the idea, is. That, once it's filled. Uh, we'll look to add to positions. Uh as, price moves on and there's our stop. Sitting down below this low in here, in other words it shouldn't be back down in there, especially if it drops. Easy. Uh meaning, it drops. You know. With good volume, and just drops on its own weight almost. All right so here's baba. Does it meet the criteria, this one came from the same list. And if we look at this, it's had. A. A nice consolidation. But then. Pulling all the way back now what's important about this. What's important about what we're seeing here i want you to think about this. Um so john, yeah so let me let me, approach this can, make a webcast speak about. I'll, have to look at i'm not sure what that other question is but, if you want to save this, scan. Probably should have told you how to do that then come back over to the scan, tab, and you can save these scans. As well. And. That is. Somewhere, up in here. So right here. So the see where the the the fire thing is the, sizzle, index add condition, to group. Click on that one which is the, second pancake, stack down. And click. Save scan, query. When you save that scan query, it's going to save, all the information, over in here, so hopefully that answers your question i want to get back to the. Charts. Uh and, another thing you can do is you can watch mike uh fair michael fairborn, on thursday, nights. Thursday afternoons. At uh. Six o'clock eastern time for getting started with think or swim, and he'll show in he does all those types of things they'll look at past archives.
Of Those to learn how to save scans, as well. Um. All right and you can watch this archive and, go back into this area and watch those scans, all right so we know that uh, baba. Is pulling back if we if we look at. What we know well we know from the scan it has a, a fairly strong. Uh. Eps. We know it's, holding. Support, what was once, supply, once was once selling. And resistance, becomes support. We can see that a. Gap up in volume yesterday, on fairly low volume wasn't. Nothing to write home to mom about but we have, stronger, relative strength, remember this is another adr, out of china, so there may be some uh, some something to consider there, but when we look at the rsi. Remember this whole this isn't for recommendations. This is for you to. Figure out how you're going to define, momentum, how you're going to find strength, in the face. Of. The markets, correcting, and the markets losing their momentum. Should that momentum, come back in in a couple of weeks. You know before the election after the election. Typically historically, after the election momentum, does come back in no matter, what happens. And. Then you want to have at least a watch list by then built that's the whole idea here. If we come up here now to. Move on to our next one here's, uh danaher. Very similar this one, uh, is, uh i'm giving this one a uh. Kind of the benefit of the doubt because, it did dip below, 50. During the beginning of the september, correction but it rallied back really quick, and got back above 50 today it's getting above, 60.. The relative, strength, line. Is very strong. As well. And, it is. Trying. Its darndest. To get above. Areas. That it struggled, in, uh, over the last, several months in other words it's pretty much just drawn a line. Along, this, 209. Dollar, area. For the longest, time with the. With the exception of the really strong dip, at the beginning of september, so, changes, in attitude. And possible, latitude. Long range day here, higher highs, higher lows, setting in but real tight range days, in here might give you, a reason, to consider. Putting on a little bit. If you wait for the pullback, that might not happen it may pop to the upside, so you can always put on just a little bit so, you know maybe, a a, a fourth, a quarter of your position, that you would put on a third of your position, to see if it can go and then once, it does then you can make a, more, informed. Decisions, along that line there. All right. And then last but not least, adobe. Adobe. Uh, struggling. Really. Uh with this pullback. To, stay above, 50 but it's really held, at that 50 zone, breaking, this. Downward. Sloping, wedge which is considered. Bullish. But i want you to also consider. This if we. If we consider how did this wedge form, this wedged, formed. Because. Of. The. Sh whoops. Because of the fake out, shakeout. And that fake out shakeout, is. Right here. That's how that wedge form. By, connecting, these two dots. But when we look at all the other action. The times. It came down into that area and touched that area. That was really kind of just shaking out some people. And, now it's. Above this downtrend, line, so that might be something to consider. Relative, strength, strong. Volume today, is is fairly, weak, so. Short range days. Uh, on. On weaker volume, today, stronger volume yesterday. It might be gearing up for something who knows but those are the that's the idea. Behind what we're doing, what we've done today to consider. To consider, finding, things that have been strong. So. With that in mind. How do you define, strength well you can use, stochastics. You can use whatever you want to use we used rsi. We used relative, strength, so, we. Outperforming. The market itself. Rsi. Holding momentum, in the face of a market that's lost its momentum. And uh. Then we built a scan. To find those things, earnings per share strong fundamentally. Strong, uh, technically. And then we of course made a trade, on that so those are the types of things you might consider. Instead, of, sitting there and going man you know i i was had these on my list but, the whole correction i was waiting for the correction to be over now the correction's, over but now they've, these stocks have run too far now i have to go find some other ones. Now what are you doing, you're scanning, you're chasing, you're doing all those different types of things, so.
Know That, if you're lamenting, if you're worried about. All those past mistakes, recognize, those start writing those down, and then visualize. Two ways visualize, the fact the pain that those mistakes, brought, and then visualize. Not making those mistakes, anymore, right and start, making, some kind of a journal if that would help you. It doesn't help everybody but it helps a lot of people so consider those things, all right everyone it's great to be back, and i want to thank everyone. Remember. Uh that coming up, next. Is, before we go any further, up next, is. Where are we tuesday. Technically, speaking with connie hill. And then after that strategy. Focused, with. Long options with michael fallette. And you can go on down, in the, webcast. If you uh if you felt that um. What, you saw here today, was helpful please like and subscribe, you know the thumbs up and subscribe, to the youtube and if you think it could help somebody. Share it with us, some of your. Friends relatives. Neighbors, whoever. That is like-minded, with you. Remember everything we're doing here for educational, purposes, and you or. You are, responsible, for your decisions, that you're making in your self-directed, account, thanks a lot everyone, we will talk to you. Soon. You.
2020-10-01 18:32
