Finding Trend Investment Candidates | Technically Speaking: Trading the Trend
hello and welcome to technically speaking on trading the trend weeks to months my name is james boyd we welcome you here today alongside with me i got my good friend who's about a half foot taller than i am you know who that is it's cameron may now uh we'd like to welcome uh maddie mark remy alberto tony wayne vijay and many others so just know when you actually see ccm in the chat cameramaid no that's a fellow instructor he also as well posts on twitter educational content they their daily make sure you're aware of actually what we post on twitter there's great educational content there announcements etc on there make sure you're seeing that that's really how a lot of times investors talk to each other so check it out but just real quick as we're getting started remember with what we just discussed here today think about what the investment objectives are the risk and charges before investing evaluate remember that when we talk about options remember that options are not suitable for all investors special risk inherited trading options there's rights and obligations understand what those are remember that also that when we trade trading involves minimal potential benefit can be impacted by transaction costs be aware of what those are and we're going to demonstrate the function of the platform and we're also going to use actual symbols they are examples they're illustrative purposes only remember that td ameritrade does not make any recommendations determine suitability of any security strategy for individual traders any investment decision you make in your self-directed account is solely your responsibility and also remember when we actually uh talk about options if we do remember the option greeks as well now today what we're going to take a look at is we'll take a quick look at the market update we're going to spend the bulk of the time really talking about finding potential trend trade candidates and i think this is actually one of the things is that i've actually been investing uh since 96 so about 25 years one of the things i always try to remember is i try to remember always the things that i actually learn first and i try yes i do learn new things but i always want to remember the principles and the practices that can be timeless and timely so i want to stay grounded to those things and not forget those just because i've actually invested longer i shouldn't forget those things how are you becoming more proficient on those principles and practices and we're going to talk about that right in that section now from that when we actually search and evaluate we'll talk about stock and option examples we'll talk about current position expiration and profit management and boy this profit management is probably pretty important considering where some stocks are now as we go through remember if you have questions just go ahead and ask cameron and i we got you covered now with that said let's actually go ahead and pop right in now on tuesday monday the market was closed we we talked about a trend condition we labeled it as number four okay and we talked about number five and so really what that means is if we're in the number four condition that actually means the stock is really up above both moving averages but could be up near where fill in the blank stock is above both moving averages but it could be up near where fill that in i'll give you a hint it starts with an r if you want to buy a vowel i would actually uh say e and you're going to get half the word right there yes resistance okay now number five condition of the trend is when actually that stock starts to fall down below the shorter term moving average but not below the 30. so right now we actually have a situation right now where it's now the s p has entered in that number five condition now sometimes people kind of talk about the market is up a lot up a little bit sideways we just kind of label it as far as a number okay now anyone can say numbers that they want no one's coined that term right english language right in the dictionary but if we actually take a look at this this is where maybe that trend is losing a little bit of its momentum now if it loses a little bit of its momentum someone who is trading in the trend might be having positions that are starting to pull back from resistance starting to break below a shorter term level of support an investor might say what are some potential options we're absolutely going to talk about that here today we talked about on tuesday as well but now the idea is can the s p really hold this longer term support level which it's still in this upper channel now the nasdaq has really kind of been a different beast okay if you really look at the nasdaq it's actually been up stronger really this week it's been quite flat and this is why sometimes maybe as a trend trader you are trading the trend but you might choose strategies that are maybe not just so directionally based like a long call the investor might do a cash secure put or short put vertical etc and you're going to see that on this week boy really there's been some time decay going by here now the index when we actually take a look look at the volatility here the volatility what do you see on the volatility yes and by the way vijay was correct when we say phil in the brain fill in the blank he said la residence yes that is the correct answer or you should say what is law resistance okay well one of the things we're actually seeing right now on the vix is we saw the price actually sell off to a moving average the blue line crossing above the red and we see the price selling off and then pushing right back up top is that a good sign or a bad sign for stocks good or bad some now remember if the volatility is going up investors might be coming a little bit more fearful maybe that the market might consolidate and or pull back now if this chart goes up investors might be more willing to buy puts or protection but we already knew that because if the market is in the number four specifically a number five condition that's what that means because if the market is starting to drop down below support that doesn't mean that investors become more dubious that means they become a little bit more pessimistic or fearful we knew that but now we're just attaching them okay now if we actually take a look at uh the second item we really want to cover here when we actually take a look at let's say just real quick on on the sector front what we would actually say is probably the strongest sector we actually have here today uh was really the discretion is you're going to see that many stocks here today have rallied and some of them have faded back now that can happen in the number five condition where you see stocks rally and then throughout the day they kind of give back that's like a staple when you actually start to see that the market is in that condition okay that's not unusual now if we start to see that popping or gapping up rallying and then fading throughout the day leaving the upper shadow that's signs of people profit-taking and if these stocks actually start closing down near the lows well for some investors that might be concerning and more proof that maybe could the support level not hold now second thing we want to talk about is really in this case finding potential trend trade candidates now earlier today i actually posted right on twitter let me actually show you what i posted and this is going to be our little discussion here i'm going to go ahead and slide this over now by the way you do not have to be a social media person to do this okay i'm not a social media person i said before i i think i facebook like one post in 10 years okay because i had to my mom wanted to make sure that it i could know how to post on facebook i'm not a facebook person okay if we're going to talk about something i want to talk about something that really matters okay so twitter is actually an interesting tool because people can share ideas educational content now what i'm going to do is i'm going to pull up one of the things we actually pulled up posted here and i'm gonna look at the nasdaq okay we're talking about finding trend trade examples now we talk about three lists all the time the dow 30 the nasdaq 100 and the s p 100 those three lists can have overlapping stocks that are on the dow and on the nasdaq or on the nasdaq that are also on the s p so if we actually take a look at this and i'm going to kind of maximize as much as i can and that might be as much as i can but i'm going to double check in just a moment yeah it's probably about as much as i can get but i think you're good on your side well you can see but i will actually bring up the labeling as well so we can follow along so first off when we actually take a look at what's really happening now this is the list of the nasdaq i call it the list number one because it's 50 stocks okay and i'll pull up the next list in just a moment but when we actually look at this we can really rank this by just looking at price performance which is what these top columns are when we actually look at let's say these columns and i'll kind of do it a different uh color the 10 and the 30 period moving average we can see where the stocks are in relationship to their moving averages and now what you're going to see is just over to the right of this we see stocks that are really showing relative strength based on different time periods now why do people use different time periods well we know that all investors are day traders we know that on all investors here are swing traders some investors like to trade trends and so they might use different types of relative strength that might be further out here to the right hand side okay so the other thing is if you said well i like to do all of it well that's why an investor might be looking for something where maybe the trend over time has been strong darker color green or maybe something that was burgundy to a red to a gray and maybe starting to become green okay you could do that as well so i don't think you have to nail yourself to let's say only looking at one column i think there could be benefits of looking at all the columns and when you look over to the right when we actually take a look at a whole or a 20-day high a 55-day high or a moving average uh crossover those would be potential entry setups and if someone says james i like trading let's say a potential price pattern maybe someone likes flags now if i were to look give you this chart what stocks stand out to you on this list now as i'm getting an answer i do want your eyes to pay attention to how many stocks are kind of in this reddish color down here below there is a lot of red color here okay now the nasdaq what you'll see is stronger than the s p you pick the stock and when i go to the list number two just over to the right and click on the forward arrow when you look at this there's still about half of the list that is still in this red color so are we just kind of seeing a mass migration of all stocks in the nasdaq going up no we're not saying that we're kind of seeing investors pick certain stocks in that sector industry group that they think could do better okay they're speculating now if we take actually look at this any stocks you'd actually like to look at now what you're gonna notice is notice there's a back arrow four there see both lists okay now if we actually take a look at this what i'm going to do when i pull it up so bj wants to look at costco uh he also says into it okay uh ricardo says khc any other stock on this list you might want to take a look at let's get about two or three more okay now did anybody know they're sending a stock at the top list where it says lulu does anybody know something stock that's for example been a strong relative strength in the last five different time periods does anybody notice a hold set up does anybody notice actually at 20 and a 55-day high okay now let's kind of talk about a couple okay now i see marks and starbucks vj says lulu okay let's hit a couple so first off what i'm going to do is let's pull up just for a quick starbucks to start off okay now if we look at a stock like starbucks and we're talking about trading the trend now sometimes stocks can really use like a moving average of support but sometimes it's maybe using a trend line you don't know until you look okay so if we were to go back and say wonder if the investor were to draw a trend line maybe from a recent pullback area and wonder if i tasked that investor and said i'd like you to draw a trendline is it horizontal is it diagonal what do you see well if i were to kind of take a more recent low and kind of say am i able to kind of touch some of these recent low spots i think as investors and technicians would probably say hey i kind of see like a diagonal line okay now that diagonal line is up trending over time which is signifying potential higher lows if you notice this we actually kind of saw what some technicians would call like a w pattern the w patterns is like what it is where you actually sell off you come back up you make a lower high maybe that lower high is at a moving average acting as a ceiling the price actually pulls back and maybe that pullback is not to where the previous level was that's why we call this a tilted up w represented by the higher low and you'll notice that today's price action is really above where the middle of the w is which was right at the 30 period moving average now what you'll notice is investors might say hey i'm kind of starting to see like a bounce off a longer term support level with a higher high now if an investor looked at this and said james i'd like to consider a potential entry if we right click over if we right click and kind of take this line forward here let's imagine the investor said you know what i want to consider a bullish entry now yesterday on twitch we talked about initial stops a lot we talked about adjusting stops a lot i will post that on my twitter when that when that recording is uploaded that way you can review that now let's say in this example given the portfolio size is 125 000 and the investor was willing to risk a half of one percent okay now if we look at let's say well what is the current entry price well currently the price is about 119.06 and if we said well where is that potential support level well if we use the diagonal line the diagonal line is about right at about 1 15 60. so if i bring up about 115.60 just using this as a sheet of
paper we see that the stop level could be about 113.29 risk per share is per share is about 5.77 now when you look at file taking a risk per share of 577 on a stock that's 119 that represents about 4.8 percent of the entry price the paper money account is going to actually right click on the chart buy custom and it's going to go with oco bracket now hold on if you do with ocl bracket james you're setting a target now if i were to ask you technicians out there boys and girls ladies and gentlemen if i were to ask you where might you consider a target where might you put it what are you looking at well sometimes the if there's a horizontal resistance or maybe a diagonal resistance or it might even be something where there's maybe a prior high so a trainer trader doesn't have to just only get out if the stock were to break support they actually might say well james if we go up to maybe that law resistance as bj said and rightly so but if we actually look at this limit gtc this is saying look sell the stock if it gets to that price or higher so the investor's saying if it goes to let's say 126 maybe some other investors see that and they take the opportunity to sell into the strength and at that point maybe they're thinking that stock is maybe a little elevated and it might pull back down to support okay now this the stop or that i'm going to type in 113 29 data gtc now the number of shares it really is kind of saying based upon the uh what it's willing to risk in the portfolio it says 108 but i'm going to keep this at really at about 100 okay so it's not in this case 108 which is on the sheet i'm going to round it down to a hundred paper money account is gonna go confirm and send remember actually how this works there's no commission though let's say buy the stock and you don't have a commission for the stock or the target the biggest thing is think about what the risk of the stop is if the stock goes to that price or less it could sell it at a lower price if that's okay the investor could send the order and now what we see is right on the chart buy limit is saying that price or less have an upside target at the prior high and a stop right underneath so boys and girls ladies and gentlemen the investor is kind of going back to the very first things they actually learned which is looking for an intermediate to longer term trend to establish the trend second looking for a short term bounce off support now that bounce could really be let's say a certain type of candle a hammer a bullish engulfing candle or it could just be a stock really getting above the recent day's highs and or it could be a stock making a brand new high as well okay now if we actually take a look at this i want to kind of go back to just real quick a different stock that was asked about okay so let's bring it up okay so one of the comments came about lulu okay now lulu yesterday had earnings and the earnings now i'm not saying i i have been into a lulu store okay and i know that they do sell a lot of athletic wear that's their main niche and sometimes people talk about their stretchy pants okay the stock stretched higher do you know how long i've been waiting to say that okay it's been like 12 hours now now if we take a look at this why do you think investors yesterday we're only willing to pay 381 and then today all of a sudden because it's thursday we're willing to pay about 50 points higher now there must have been something in here that said this company based on what they said in the forecast and what was built into the price already maybe it wasn't fully represented what that stock could actually be worth okay and they say hey it's maybe a little bit mispriced with new information the market prices that it is immediately we think this stock could be worth a little bit more and it's about 10 more now if we take a look at this could now the stock opens up higher those who were in the stock yesterday and the day before that the day before that they opened up 50 points higher now what do people sometimes do if the stock opens up 50 points higher they some people might say i'm gonna actually take the pop now do all investors say that's it sell into the strength well no some investors might say look i know some people shorter term are going to get out but maybe that sell-off might come down near this old area of resistance or low resistance now if we take a look at this and go to the three year weekly chart this is the trend okay now if we take a look at this and say longer term trend what do we see well what you're going to notice is we see a double top one two and we're just gonna kind of drag that to the right recently we saw the price go above that resistance and for weeks we saw the price consolidate and as of this week's price action this would be the close above the high of the low day or the low week i should say okay so last week would be the lowest most recent down week if the market were to close here or this lulu were to close here this would be actually closing above last week's high now annette is actually saying take profits and run and guys and gals this is what's so funny not everyone's the same there's some people that have a short term focus and they say look i just want to make money today and in the next couple days and i'll get in the stock later but sometimes when people do that those longer term trends keep going like on amazon i mean i thought amazon was overpriced back in 1998 at 19 so people can short term profit take but that doesn't mean that the trend is over so the personal profit takes feels really good and really smart yeah yeah i profit took but the question is is the trend over if someone profit took just remember that there could be re-entry signals after the profit taken that's important to remember don't forget that okay now we're going to go back to lulu and let's kind of say that the investors said james it's a big at all stock and let's kind of make the assumption that they said i don't really want to have necessarily the under that risk down to zero on the stock let's say they said james i want to sell a put but i also want to have some built-in downside protection okay what does that mean speaking of sphinx here well what that really means if the investor sells a put that's the obligation to buy the stock at the strike price from now until expiration but if they said well what is downside protection downside protection could be that the investor buys a put below thus giving them the right to sell the ships if the stock were to go down okay if they wanted to have that protection okay so how does the investor do that they sell a higher strike put and they buy a lower strike put that is a short put vertical well when you bring this up if we right click on that 870 we go cell vertical this is really what the forecast sick thinking could the stock stay above 410 now there's a con about this okay if this stock goes up to 430 440 450 460 the problem is this is a maximum gain strategy this is not a stock position this is not a long call long synthetic it doesn't infinitely make okay and what you're going to notice is it's making a portion of that potential upside by selling the put at 410 collecting the credit at 285 it gives a break even at 407.15.
here's what we need to want we want to make sure we understand if someone is trading the trend they do not have to just do stocks it is okay to consider probability type trades where the investor's saying look i think the trend is up but i really want to have a higher likelihood that the investor could be right so the probabilities as of right now are there's a 34 chance the stock will be below the strike okay that means that it could actually be nearing that break even expiration as of right now there's a 66 chance of the stock being above the strike as of right now those probabilities are not static okay they're dynamic they move based upon the volatility of the stock and based also on how much time there is to expiration so in this tr in this case the investor is actually saying okay i want to do a probability based trading i don't want to have a trade that's a 50 50 chance i want to have a higher probability of making something now let's not fall into the trap where people say i'm not really a math person i'm not really a person that really looks at probability really so when you got married you just were okay with never asking what's the chances of us going to the end i think that's not true i think when you actually got married to that person you loved dearly i think you said man is this a higher probability based trend trade investment where you said the longer term trend looks interesting for you to consider courtship and marriage please tell me you're laughing i try you know it's kind of funny but no fault of the traffic people i'm not really a math person really okay why'd you buy the house why'd you study what you did in college you just i mean you studied something where there's a zero percent chance to get a job really we are kind of math people okay now if we take a look at this what you're gonna notice is there's a credit less the commission if that's okay the payment account is going to sell two of those okay to really make it where the max loss is really what it should be which is about fifteen hundred dollars now amanda asked the question do you have the twitch links twitch link from yesterday's class that class does not get posted till friday as soon as it posts i'll put it on my twitter page probably twice that way you can actually see that it's actually uh linked up a job and said something funny but i'm not really a math person maybe it's part of the reason why i never got married well john i hey you know i think it's important to maybe consider maybe the decision making right we all make decisions and maybe maybe john you're right maybe now when we all got married we never knew it's going to be 100 probability things can happen we're aware of that but maybe you might take that into consideration okay thank you for playing that game and having a little fun here now confirm and send there it is now don't worry i didn't get married i didn't get married till later either all right now all right yeah i can see a little couple more jokes coming in i'll stay to the task okay so we can meanwhile back at the ranch okay so here we go now what i want to do is i want to go back to something just real quick so if we were to take a look at and let me pull something up i want to see if i can't grab something let me see right here i actually think okay there it is so let me kind of pull something back up so when we actually look at let's say i want to kind of show you the difference of what we're seeing in the nasdaq versus the s p when we actually looked at this list okay what you will notice is there's a lot more stocks in the nasdaq that really look the nasdaq as a whole looks like it has stronger breadth okay meaning there's more sectors in stocks that are represented but let's not fool ourselves when we look at this list there's still a crop of stocks that really have poor relative strength okay and if you look at the nasdaq there what you're going to see is there's half of that list right there that is just red all over the table okay on the relative strength now let's look at the s p just real quick okay now when we actually look at the s p what you're going to notice is do you notice anything here's the s p what do you notice here's half of the s p and when you look at the s p and the columns of relative strength you would have to say two thirds of the lit the first list is and if we actually look at the second list what you'll actually see is maybe half of the list is green half now i want to kind of take a look at this because one of the stocks that actually came up now by the way when we actually look at this the stock that we actually just pulled up was starbucks that was one of the examples now what you're going to notice is i want you to understand this is when you take a look at starbucks starbucks is really right there and starbucks was something that was red and then went green and then what's green again and then what's green again so over time we're really kind of seeing that the relative strength is increasing when you look at the relative we're also seeing that when we take a look at hold showing a potential setup and it's also showing a 20-day high now we we do need to talk about some of those things are read because i don't want to make the assumption that everything in the portfolio is perfect and i'm just showing you proof of that now when people are talking about investing in stocks there's a narrower list of stocks that are really bullish okay and we're going to talk about some stocks we'll wonder if the investor has some stocks that aren't doing great now what let's bring that up so first off let's bring up a stock and the stock i really want to bring up in this case is uh i'm going to go ahead and actually bring up the stock i'm going to pull up disney now if we look at let's say disney from a longer term this is looking at a three-year weekly chart tell me what you see on disney now i want you to notice that some of these examples that i'm pulling from are mainly from one main sector tell me what that sector is now if you look at the longer term what we see on this uh chart is we see an upward trend we see a pullback where actually there was a base of support at once every one we kind of had like a sideways channel that top of the channel being 180ish and now what we're starting to really see is the macd standing up the highest heads it has been in weeks that i'd actually even say most now what does that even mean now i would actually say that cameron may is the macd specialist so cameron talked to us here about what we're seeing on the macd but the macd that momentum is building and if the momentum is building the question is is that momentum building to a point where it's bouncing or is the momentum building to a point where it's maybe starting to break out of resistance now if we could actually go back and look at this and say well what was the prior high on this chart maybe could this stop be making more like an intermediate weeks to months more like a cop where it goes down bases runs back up maybe it's in that process might over time might flag and try to maybe make it through the 200 now if we actually take a look at look at this i want to kind of go back and let's look at a potential trade example on this now some investors kind of talk about well james could the investor buy the stock or buy the call and maybe at the same time not buy the stock or buy the call and then maybe sell the call now if you buy the stock and sell the call that is your classic covered call good part about that is you bring in income the con about that is you tap the upside let me take it from a little bit different point of view i'm going to take it as the paper money account is going to buy the shares of the stock and so when it buys the shares of the stock it's going to buy the shares in this case it's going to do it in the ira account where it could buy a hundred shares of stock okay only number two it's going to go down to where it says single order first trigger is scq so in other words do this in sequence step one buy the stock step two buy the put so this is going to be what we would call a merry put the underlying asset is the stock the put is the protection for the stock now when investors buy puts they might buy push just for just a couple days to a couple weeks why that time frame well because when the investor buys the put that you know the longer you go out the higher price to put okay so typically the investor is concerned about short term price risk now if we take a look at this the paperwork account is going to do something a little different now the investor might choose a put maybe to start with with a delta of 30 to 40. but i'm even gonna mix up stir up the pot even more i'm even gonna say well one does the investor have to do that no that's what the other strikes are for let's say the investor says james i want to buy a put even at a lower okay delta which means there's a lower chance of the stock closing below that strike because you got to remember when the investor buys a put that is a lower probability trade if the investor buys those puts out the money if the investor is aware of that they say i get that maybe that investor just wants to buy a put maybe with the delta only let's say 20 to 30. so think of this as what is the risk well the risk is from 185 down to 175 so that's going to be ten dollars ten dollars but the investor also has a right to sell the shares for the strike price from now to expiration that's their right and that right is not free it's a dollar seventy one so ten dollars plus a dollar seventy one means there's a defined risk on this trade from now until this expiration of about 11.70 cents now these mary puts might be interesting the lower the implied volatility is the lower the implied volatility is the lower the put premiums the lower the put premiums the less the stock has to go up to break even to pay for that put now the investor were to say okay let's confirm and send now what you're going to see is this is a stock trade now here's the question just want to make sure we're all the same page does this stock have a capped upside is there an upside obligation yes or no is there an upside obligation on this no there's not there's a downside right to sell the shares at 175. so this is a stock trade no upside cap it just has downside protection so if the stock were to go down down down down the investor has that right to sell the shares from now to expiration and or at expiration and it makes the trade a defined risk trade send the order and now you got to remember is when the investor buys that put that foot is 65 cents as well this is not a stock now what i want to kind of do is i want to kind of just quickly show some other stocks that might have come across the screen so a couple other stocks that are kind of making some news here today you got a stock like more modern that has actually for example been in a big strong upward trend created a base of support and i could already hear matt cameron saying look at the macd look at the macd look at the macd you're actually seeing in this case the macd is getting less bad or it's not getting as low as it was before and now the macd is staying above zero and like very similar in this case to let's say disney what you're going to notice in this case it kind of had a pullback prior eye went down to a base channeled around and then if we look at this on this chart this is really into the second day of a breakout if we zoom in on this we are on a daily chart you will see the stock price today if it closes here would be closing above yesterday's high that would be what some technicians call a bounce setup now we're probably looking at the stock and saying yeah 454 dollars but the options are probably pretty wide might surprise us a little bit here okay so first off when you take a look at this since it is a higher price dollar stock you are going to see if i looked at let's say a delta between 30 to 40 the spray is not as bad as you would think why are we going there okay well first off what you'll notice is the open interest it's not three contracts or seven it's 376 contracts that's not bad the spread between the bid and ask is 60 cents and if you look at it also on the strike below there it's 60 cents now you got to imagine the higher the price dollar stock is the spread is probably going to be wider i mean just go look at amazon go look at google et cetera nominally the the the dollar spread's gonna be wider but when you look at as far as a percentage what that spread is to maybe the mark value probably as small as the other ones okay that are liquid now if the investor said james i want to sell this put and also buy the put below to try to take advantage of this little upward trend let me go back to the chart some of you might be saying james show me that three year weekly chart this is what it's showing now here's the thing what we need to understand okay i think it's fair to say back here we thought there's no way it could keep going up we probably thought right there there's no way it could keep going up hit an all-time high we thought there's no way to keep going up the problem is it's still in that trend and this recent couple weeks has really been a situation where the stock has just really made a higher level support after the run up in the price now what you're going to notice is if we take a look at the week down to the one year daily that's what the chart looks like and if you're thinking hey could that stop stay above the 400 that might be where the investor sells the put okay now if we go back to the strike and say what strike was the payment account looking at it was even looking at a strike price higher than that okay now if the strike is higher that means there's probably or should be a higher credit received and there is if we look at this and say wow there's a 405 credit for a max loss of 595 how could that be well we know there's one main weight in which it how could be and it starts with a v ends with e okay volatility okay we see in this case the only way you can actually get a max profit that high relative the max loss and a short put spread is the implied volatility must be pretty high now if we take a look at this what you're going to notice is if we go back and say what is that implied volatility it's at 68. that's the annualized number okay of volatility that's annualized okay and what you're now going to see if we go to confirm and send now what you're going to notice is there's the max profit max loss if the paper money account was positioning for a max loss of let's say 1500 dollars well in this case it would be you know max loss of eleven ninety so the paper money account is okay with that and sends that the commission being two dollars and sixty cents it sends that order and now what you're going to see is it's going to be a little bit more it's a it's a bullish trade but it has a greater probability of actually at least trying to make some money now what i want to do is i want to kind of go back and kind of just make one comment before i go to questions okay so remember we said today we're going to spend the bulk of the time really talking about finding stocks we don't have 72 different ways to actually evaluate to find stocks we're looking at price performance we're looking at stocks where they are the relationship to the moving averages looking at relative strength bounce criteria breakouts and crossovers and maybe even a price price pattern and then repeating that over and over and over and over again and practicing that and it's kind of funny this and when you practice it over and over again you tend to actually improve uh and get more proficient at that practice now the one thing i will want to kind of say before i go to questions i'm going to spend the rest of time on questions imagine that this was a long stock portfolio okay long stock portfolio and these were the stocks that were in the portfolio what i want you to kind of be aware of and you might evaluate some of the stocks in your paper money portfolio as well when you look at the stocks and say well geez how many of these stocks are in a condition where they might be let's say up near resistance well out of those maybe 10 stocks remember what's that number four condition number four condition is when the stock is above both moving averages but it could be up near resistance there's four stocks three stocks that the investor might keep an eye on if those stocks start to come down to such an extent where they start to drop below their shorter term moving average like goldman sachs gonna keep an eye on that now luckily okay about half of the stocks are still in that number three condition where that means the stock is up nearer resistance and in this case it doesn't the stocks are up above both moving averages but it doesn't have a resistance so this is kind of allowing us to kind of use the scripts in helping us kind of see where these stocks are without looking at any charts which could be helpful it's important to verify this but there's only one stock here goldman sachs that really actually is in a situation where it's starting to fall back we didn't talk about that yesterday we did talk about the adjustment of stops now and that is asking the question what are the columns one through five i don't know if you know this or not but you can actually click on the drop down excuse me not the drop down you could actually just click on for example the gear and what you're going to notice is you can for example put in the scripts whether it's like the one week performance the one month performance you can even say hey is the stock above the 10. in other words you're taking the
scripts that we would normally show on the market watch and we're just bringing them up on the monitor tab so we're just going to the gear let's say i want to know are the stocks that was still about the 10-day moving average let's add that and if we add that it should be right there so now if i add that it's now going to show which stocks are still above the 10. well now when i look at this which stocks might the investor become a little bit more concerned about well jesus i mean if those stocks are below the 10 we might ask are those stocks may be starting to lose momentum that's that's a way to kind of manage or monitor those positions if we actually took a 30-day moving average script and said hey which stocks in there are also getting down below the 30 okay taking the same scripts as we had on the market watch so the stocks that would become a little bit more concerning would be spg which is below the 10 and the 30. so is ruger so is lilly and so is ll uh so is amd so we're taking the scripts that are normally on the market watch page and we're just putting them on the monitor tab and that becomes an easier way to kind of see which stocks might be starting to lose their momentum and maybe have a trend starting to reverse okay so just remember you can actually add those scripts by clicking on the uh the gear you click on the gear any of the scripts we actually put on are typically used can also be added to the monitor page now i have my time uh just want to answer those questions and i just want to see now i want to give you a quick reminder that in the chat there's a survey link you can click on that and it's just a quick five questions we'd love to actually hear your feedback about today's session our goal of today that we wanted to really do is to talk about finding potential trend trade candidates we did we looked at daily charts we looked at weekly charts we also showed an example of stock and option examples and then we also talked about for example uh answering some of your questions as well i said we were going to spend the majority of the time there and we did but i also want to make sure we left some time for your questions as well now remember that coming up right at the top of the hour uh we will actually have a new webcast stay tuned for that i will be posting on twitter today tomorrow educational content be aware of that if you said hey james i i actually don't have any of those scripts that you really showed uh where can i actually see those right on your twitter page well remember if you go to my twitter page okay you can just go to twitter.com google james uh well you could you could google me as well uh but if you just pull up james boyd on twitter right at the very top those scripts are right here and when you click on this picture what it's going to do is it's going to show you any of those scripts which is like a search the investor gets to pick for themselves what is interest to them okay so i'm out of my time here today thank you cameron thank thanks to you for all of your questions and your comments and your participation remember coming up right at the top of that we'll have a new webcast stay tuned for john mcnichol coming up and uh with that said thank you so much for your comments again and your participation thank you so much and have a great day i'll see you on twitter and
2021-09-11 01:07
