Swing Trading Days to Weeks | Michael Fairbourn | 3-23-21 | Exploring the Bounce & Breakout

all right everybody well good to be here with you uh excited to get started here mike fairboy's sitting in for mr john mcnichol who's asked me to step in at short notice folks we do have mr cameron may in the chat helping out great to have kim here very knowledgeable in this topic and appreciate him stepping up to help us out and good morning to all of you there are so many names here i can't mention them all it's a very uh popular class and great to be able to sit in for john today as we talk about swing trading days to weeks so good morning to all of you i look forward to our discussion i've had a chance to uh really you know this is part of what i do on a normal day-to-day basis is really looking for stock setups that are both on a daily basis or extended out a little bit longer into a weekly basis so i'm excited to share with you some paper money trade paper money trade examples as well as initially i wanted to address that concept of swing trading and seeing if the market is in a position right now to continue to bounce higher we had an interesting candlestick pattern happen this week and we'll review it the market initially we'll go through it we'll uh i'll start off with our disclosures real quick with our agenda and get going but great to have you all here today again mike fairborne sitting in for mr john mcnichol folks you can follow myself and cameron on twitter there's my twitter handle right there and fairborn underscore tda camera is much easier see may underscore tda but we'd love to have you both on board all right well let's go ahead and just hit some disclosure so we could jump into this folks please remember the following points here options are not suitable for all investors there are special risks inherent to options trading makes those investors potentially rapidly substantial losses please keep that in mind as well as the fact that all investing involves risk including the risk of loss this paper money application is for education purposes only and so too is this presentation some additional disclosure slides here to be aware of finally our option greeks right here so as we step on into it our agend agenda today i do want to do a market overview of the s p 500 chart i generally do this with the classes that i do teach here as well which are most of them fundamentally driven fundamentals plus technicals is what i try to do in the other classes and we do like to look at the s p 500 sharp because it gives us a reference point as to the direction of the overall current if you will what direction is the market going if you try to fight that underlying direction folks it's very very tough sledding it can be challenging to fight the general trend of the market so we'd like to reference the market and that's why we do that just from a top-down perspective of course you can do that with the market the sector the industry before you get to the company but it is helpful to see the underlying direction at least in terms of the chart as i stated here so that you're not fighting that underlying trend okay talk about building on the trend a couple of different key areas that investors will focus in on when they are trading with the trend a couple of different setups if you will uh before they place an entry we will talk about short to intermediate term trades within our paper money trade examples those short to intermediate term trades are really going from just like the title describes here for this class days to weeks okay so we'll we'll jump into that and let's do it right now and once again welcome to all of you that are here mike fairborn sitting in for mr john mcdickel who's out okay so let's start with the market as we mentioned here and we'll just go from there okay here is a one-year chart on the market i'm gonna kind of zoom in right now on the market to highlight this longer term trend and really the strength of the bounce that we'd seen all the way back really from uh november of last year higher highs and higher lows continuing up on uh the market with for the market in general here now i wanted to highlight a couple of things that i've drawn through here uh well actually we broke this this trend line right and we had bounced off a longer term support level here the market trying to reassert itself we did hit an all-time another all-time high right here that's indicative obviously if you're getting all-time highs indicative of underlying strength of the market itself right if you're hitting all-time highs it gives you a really good sense of what direction the trend is in this pullback we did and we'd seen this a number of times kind of this curving over as you could see and we've seen it before throughout this underlying trend here longer term but we came back down to this area right around 30 900 or so where there were some prior highs and some basically some some activity that we'd seen horizontally in the past so you can see right through here we we'd held up on that level pretty well folks we came down and we bounced off that level with that if you can name that candle pattern right there i'm going to really kind of zoom in a little bit more because i i'm trying to highlight for you that the market came down at this particular point and um okay just doing a quick check it looks like uh sound is working properly thank you ken uh the point i was trying to illustrate here is that we have come down and we bounced off an area here where we're also seeing another probability come up which gives us a little bit additional confidence that the market might be ready to maybe extend higher possibly we're over here watching the s p5 over here on the on the left hand side well there's the futures here is the market right there right just down four right now but we are down a little bit but folks my point is is that longer term level towards that 3900 point and oftentimes it's it's range there's a range in here a little bit higher maybe a little bit lower but generally speaking right near that 3900 you start to get that additional probability that creeps up there in the form of candlestick charts candlestick patterns so you can see this pattern right this is actually a individual candle but can anybody name what this candle represents these three candles right here which are also very common as they set up off a bounce for companies that are or for a stock or in this case the market for reasserting its underlying trend okay daryl's got the candlestick in terms of the doji right that would be the middle right there it's also built in another candle so just to let you know i'll keep an eye on the chat and see if anybody comes up with that but that is another candlestick pattern okay if not i'll go ahead and bring it up but uh yeah just want to see if anybody knew and help you to recognize that it is happening at a longer term support level anyways that's the market the market's been strong it's reasserting itself and giving us some indications at support there and it is in fact simi says a morning star and that is exactly right that's a morning start pattern a big uh normally a drop down a sharp drop down oftentimes you'll get a doji here and then a sharp follow through if you're getting a morning star on the s p 500 which is representative of 500 companies folks you are getting that morning star across a lot of companies out there too okay uh yep it is a morning star you guys are right and yeah there are a couple of points that you might see in there that you could also say like a bullish engulfing pattern that could also be true so looking at those three together as that morning star pattern though all right we're gonna look at some of those companies today as we address some setups here all right very good well i want to talk about building on the trend we're certainly trying to build on the trend of the market and trade in the direction of the market let's pull up just a blank uh screen here as i wanted to point out to you that longer term trend or shorter term trend oftentimes we're looking to swing trade within days and possibly weeks maybe extending beyond a month's period of time which i'll talk about in just a second but the underlying trend itself all stocks look a little bit different but they all look sort of similar in terms of a trend i mean the trends do look somewhat similar the more that you're familiar with the market the more experience the more time you've had to look at charts the more you'll recognize that a trend i'm depicting an upward trend right now is is built on higher highs and higher lows and it was shown back in the 70s that you that use that super computer uh which is not that super anymore actually uh to put a uh land a rocket on the mune the moon but what they did is they had shown that um historically or using statistical probabilities that trading a trend is a statistically valid concept so trading with it can generate with you probabilities and there are all different kinds of trends out there that you'll find in the market in many cases investors will try to trade a trend that might be very similar to this and it might just be resting on a prior high right and i think many of you are aware of this but just as a quick review you're looking to trade a bounce that is trading counter to the underlying stronger trend right so just by trading a bounce trade and these have also been known you've seen these before it's just kind of like flag patterns they're just trades in the direction of the trend that in many cases may have a higher probability of extending higher but that is one scenario that is the bounce trade okay there's another sort of a trade and we're going to be looking at these within our trade examples today so i want to highlight them we're going to be looking at both another scenario is this the trend is up and often times it can go sideways and just be thinking about what you might be seeing in the market it's going sideways for a period of time the underlying trend is up the longer term trend is up and you've got levels where investors might be trying to traders might be trying to pick up uh purchases down here at these levels but also if it does in fact break above a resistance level too and it's not to say that you can't buy down here at the lower level and you can't buy on the breakout too you could buy it both but sometimes you don't catch a stock when it's down here or you want to wait for additional confirmation because a stock's been in a sideways channel for so long you don't just want to play it up to this point you want to actually see a breakout above this level so those are two ways to really tap into a trend that i think a number of traders and investors will use i'm simply looking here at horizontal support and resistance and that's denoted by really lows and highs on a stock chart itself there are other ways to find support there are fibonacci lines i'm sure john mcnichol a big fibonacci guy talks about fibonacci points um there are moving averages maybe other indicators that you're using oftentimes for me i'm just and i think many traders are just looking at the the trend of the chart itself okay so we're gonna be talking about those as we look at our trade examples today uh but that's kind of building on the trend in those two key areas either as support or a break above resistance we talked about short to intermediate term which really helps to kind of define this this whole class here it's actually swing trading days to weeks and it you can go a little bit beyond that possibly um depending upon the trend itself we are going to focus more on the short term but i want to kind of identify the two at least in terms of what's most familiar with me so quickly i would say this so swing trading as we kind of define the trend so swing trading would be those stocks that are really up to you can trade up to one month's time frame uh and you think well that's kind of a one month's time frame or one month time frame up to a one month time frame okay and so if you think about it that really encompasses everything within that group i mean it's it's from days right it could be it could be a day or two or three you know that's frequently a time frame where we're looking at that underlying trend to trade this could be a few days that we're looking at it could also be a few weeks so whatever that follow-through is on the trend that we're trying to tap into on whatever our entry point could be it's really up to up to a one month time frame swing trading now getting beyond that intermediate term is just outside of that range and normally up to maybe like one to three months would be the intermediate term time frame and i'm not going to be lazy i'm going to actually type that in so intermediate would be between one month to three months now there are variations here okay i don't have the end say on this this is just how i've defined it over the past 23 years myself this is what i like to use and i'd throw it out there because i think you know it might resonate with some traders and investors and they might there might be some some connections there uh beyond that maybe a little bit more longer term and some people would say you know one two and i've actually gone you know i mean i'm okay with the same one to six months for intermediate term uh but it's it's normally at least within one month to three months okay enough said there let's go ahead and get back to our putting it all together now in terms of paper money trade examples i want to start off first with with a company here that's that has not had a change in trend yet but this is an area that people are waiting for maybe our longer term trend is up this is a company that's been holding at a very long term around this 150 level i found it interesting here some investors might have a longer term trend that they're looking at this company did become profitable as you can see i don't think it's always been profitable but it's it's yeah negative earnings it began to be profitable we'll see if it remains that way it's holding at 150 some investors might look at longer term levels as they anticipate a trend beginning we're not going to focus in on that today but i thought it would be an interesting starting point to maybe address with you you might see trends begin or resume off longer term support levels oftentimes that can be reflective of earnings changes too i talk a lot about this in my investing in value stocks and growth and value strategies where we actually try to pick up companies uh as they are beginning their trend and that are being driven by strong fundamentals okay that's how many uh of these stocks that we'll be looking at right now start as we go into them right now csx corporation csx corporation just a quick look at it as you can see a transportation company i think this is the one that warren buffett owns quite a bit of now these companies stand to do well due to that uh keystone pipeline being shut down i think the majority of railroads will tend to do well in that environment okay uh as we look at this you might be able to just step back and think about kind of those those two scenarios that we were talking about in terms of the underlying trend what are we looking at here well there are you know there's certainly times where this stock was strong and you can you can look over here just on a one-year chart you can see all of these excellent kind of well you know flag patterns this is a little bit longer but once that long-term trend gets established i mean how many of them are there there are so many here to look at and potentially participate in that would fit in with the swing trade time frame are we getting back to that again with possibly a strong underlying driver for the business which is oftentimes what drives these trends okay that company values just increasing and we see that on the chart well we talked about this setup on the chart and that is a strong upward move and a bit of a sideways channel and then folks that break out possibly here is a stock that has come up to this range you've got a little bit of a test near 95 here clearly at 95 or slightly above here's a 95 test right here and here we are again let's zoom into this and so we can examine it a little bit more detail but this is what this looks like so we're coming up here and we just took out that 95 level uh or are very close to it i should i should say we did yesterday uh but we're holding this range right now this is a positive now to really confirm that it is a breakout i think some investors would wait for a breakout and maybe a test here or simply just a breakout now how many historically i want you to type this into the chat box historically how many breakout patterns just take off and go and really don't test the prior highs like for example this was a breakout right here when you see a breakout what percentage of time do stocks actually break out and run and just continue going jp says ascending triangle set up yeah you you could be seeing ascending triangle sure to a degree um let me think so you've got a let's draw that over here like right here through this range and those triangle patterns will tend to follow through good catch jp great job in the direction of the underlying trend right there sorry my lines aren't perfect there but you might be starting to get above those highs any thoughts on that percentage though folks a breakout so that was a good catch there seventy percent thirty percent yeah it is thirty yes it is thirty yeah i i was thinking higher myself the very first time i saw it but 30 percent of the time folks you'll actually see it break out and just run so there's not there are not huge probabilities on the breakout now what can happen is this you can break out and i appreciate the participation in the chat it will help you remember these things if you type it in too in many cases but if you break out and you come back down and hold that's on the other seventy percent of the time of what happens that's still a probability on that 70 percent in other words you can break above resistance and hold now these are historical numbers that obviously can change over time this is one that was run through a rather large computer and tested across large time frames okay but there you have it so there's the possibility of a bounce right there so you can still get that these kinds of breakouts are not as common where they just take off and they really don't come back and test those prior highs which we didn't even do over here right we this was the prior level so keep that in mind so mike s asked about other technical indicators we'll go into that i'm going to hit a couple of those before we're done mike i'll try to i'll try to uh answer that question cam might have something in mind as well too but um the rsi is one that i do keep in mind a lot of times the rsi uh let me just actually let me just do this right now and show you this the rsi's and one of the indicators that i do use let me point this out to you now oftentimes when you're getting a strong upward trend and you're seeing a bull flag pattern come back down you want to see the rsi north of 4d north of 40 right there you want to see it holding above 40 when that rsi comes down and bounces that's just one technique that i've learned over the years and watching that rsi you'll notice this one interestingly enough came right down to 40 and bounced bounced uh it's stronger above 40 but i thought i'd field that question i thought it was an interesting question and you can go back and test this yourself on other strong moves but you want to see that rsi holding that range notice over here these flag patterns we're all really above that 40 range some some actually some investors will say 50 for the strongest move but really between 40 and 50. all right well that's a breakout we have not seen the breakout yet occur on csx so what we're going to do now we're going to move on to our next stock you're going to see there are going to be some additional scenarios here that we're trying to look at in terms of potential swing trades and setups so this is t-mobile t-mobile has that long strong underlying trend it did have a little bit of a bigger pullback which i want to zoom in on right now you can see us pulling back and really kind of supporting and respecting a longer term support level interestingly enough at 1 17.50 it's not really known as a historical level of support but folks don't doubt me look at this it did it again right there bounced right off that level and we went up higher well that's interesting that's a support level but more interesting is that yes it did hold that long-term support level and sometimes that's where trends can begin and that's why i wanted to kind of emphasize it a little bit trends can begin offer long longer term bounces off of main support levels and that's where they can resume this longer term upward trend so now we get into the interesting part of this stock right here well you got a double bounce there was resistance through here namely that prior high what did we just do on the chart we took it out and to name one additional indicator not everybody calls this an indicator but i do i mean i i consider stronger volume on the breakout above this range to be a positive confirmation more buyers coming in as you're taking at a level where you were just getting people selling in here this is these are resistance points and now we're coming back down and testing this level at 125.

all right so now we get even more minute we're getting down into the actual entry trigger itself those were three distinct levels of progression we talked about the bounce off of key support actually four sorry four the bounce off of key support right this was one two we broke above resistance this is all in the direction of a longer term trend three we pulled back down to support now for which is oftentimes the case we're looking for the actual trigger if you will what was that candlestick pattern that we talked about yesterday or excuse me earlier well that we saw yesterday on the market and we said we saw it on the market and we shouldn't be too surprised if we saw at least something similar to it on individual stocks and maybe they were hitting support too remember that it was right there and you see it again on a stock at that pullback at our number three here that was that morning star pattern right which you're getting a down day this is kind of morning star-ish not as clear as the market but you certainly had a down day you had something it was kind of like a doji and then there's your follow-through you had a morning started there too i'm just going to look and see if i catch anything else here what else do we call a setup that looks like this where you're taking out that high right there is there anything else in there you know that's kind of part of that candlestick that gives us any additional um evidence or and and with that evidence any additional confidence christian said morningstar absolutely if you've heard of the k-hold though the close above the high of the low day you're getting it right there you're getting it right there and that's oftentimes a trigger to enter oh there it is it's starting to come through george who's got it it's k hold right k hold k hold is just it's an acronym for close above terrible on this writing close above the high of the low day and that's oftentimes what gets that trend started back up again right it's that bounce that's taking out that shorter term resistance level of those prior highs and you're just simply allowing great we're getting a lot of excellent uh uh feedback in the chat you guys have got it awesome love to see it because now i know what you're looking for and you can see it as it's as it's actually happening we're a day late here but it did happen yesterday but look at all these different lows did we close above the high of that low we did not we got this low finally a new low we did close above it i'm gonna go ahead and just put an entry a paper trade order in on this uh right now and we're gonna be looking at excuse me is setting a stop just below our level here or we can actually set a stop below the low of uh the trigger bar which is this bar right here i've seen it done both ways oftentimes it won't dip below your trigger on the k hold itself okay so some investors will raise their stop to this level that's kind of an upper stop a lower stop but we're going to be looking at here is a follow-through of this bounce into a kind of a price target i'm just going to eyeball it here folks so taking this price range here that you see between that low and this high level which is right through here and right over here and i'm just going to simply move this up there are ways to do this with a drawing tool but i'm just going to eyeball it and say it's about here and where does that put us interestingly enough it puts us right up to resistance longer term resistance so it might pause there or stop there anyhow but that would be somewhere in here would be our price target okay so i wanted to lay that out there for you before we put the trade in so let's do it let's go up to our trade tab right now i'm just going to do a simple 100 share and you might have different numbers you put in based upon your account size but i'm going to go ahead and submit this right now click on the trade tab click on the ask price i'm going to go ahead and click confirm here always be mindful of transaction costs but the great thing is if you're doing an online us exchange listed stock there's not going to be that commission so there it is right there it's kind of a a hefty sum right for 100 shares it's a it's a hundred a dollar plus stock it's a little over twelve thousand dollars then i'm gonna go ahead and put that in real easy for me to do in our paper money and there's my rejection because i didn't select an account i'm just going through folks my normal process here of not selecting my uh debt i'm just in a demo account here i'm kidding but uh no you gotta select even your demo account normally i think if you're in uh your own paper money account it might actually select it itself but anyhow i just want to put that in as a sample paper trade example all right so that was the pullback to support i've got another breakout trade a little bit longer and this was an interesting company well you've heard of it before facebook in terms of the chart itself um it has a long-term trend as well you might look at some of the characteristics that the stock's been able to bring into our interest here bring us up to this point but it has been consolidating yes all the way since august of last year it's been almost doing well doing very little compared to what it's done previously as you can see it's really stuck in this longer term range okay now some people i do know you know they do like facebook other people don't but collectively the market doesn't care the market just says are you making more money over time and you can see that well they were in this one dollar range one dollar range that's two dollar range folks that's nearly four dollar range what do you think might be happening to the value of this business do you think it might be increasing based on earnings in the concept of retained earnings yes it might be uh getting to the point where its underlying value might just be worth more so it may be ready to break out of this range just as a quick note on earnings you know and how it ties in with what's going on with the company here there might be additional drivers here to push us higher there's a big level of resistance that we need to kind of maybe think about before you know somebody would make an entry on this document you're getting close to there around 300 just below 300 right there just right at or slightly higher than 300 in that range and folks what do we do just yesterday we hit 300. now we might break through and keep going we might that's the 30 probability the other probability is is you hit it the other 70 percent says you hit it and you come back down you hit it you break through and you test you break through here's another probability you you kind of hold there and sit i'm going to zoom in now and kind of show you what we could be watching and waiting for on this stop at or near that 300 level let me pull down my uh y-axis here because uh yeah we need to kind of highlight this so if in fact you know and by the way there's nothing that says the stock's just going to break through we're anticipating the break but we don't know if that's going to happen on this stock it's been here for a long time august we've seen some strong developments within the company it was in the it was making a dollar dollar range we wanted to two dollars now or nearly that's 388 nearly four dollars that's more money for the business raising the overall value of that company that's sometimes oftentimes okay where they break out of the longer term range so if we if we just assume okay we anticipate it it's going to happen we're watching it let's say we're looking at those 70 probabilities of what could unfold well if you get this set up where you break above and you just kind of hold there folks that's seen historically by technicians as a real positive there you go i'll even circle it it's a positive why would that be a positive why would a setup like this be a positive you might see a chart pattern here that you're seeing but if you think about what's actually happened you just took out 300 if this scenario unfolds and you're holding 300 that's a positive you just took out all of those sellers that had been keeping the price down and now you're above that level you just blew out all those selling that selling pressure if the selling pressure is gone well you could see a follow through and that's why technicians will say that's a high probability kind of a trade it's also one of those bull flags that are very very strong let me see if i can just draw it over here you break out above a range and you go sideways there yeah oftentimes you're going to get that follow through another 70 that would fall into that probability is a breakout and then a test lower well it's very similar to the last one it's it's quite strong you broke above and then you tested this level so we can keep an eye on facebook for a breakout let me readjust my y-axis i've got to click on this little icon to do that otherwise your charts are just going to be screwed up so right just left click and go to auto again and what that will do as you can see is it will reestablish that um y-axis for you so all your charts should be set up again okay all right folks if you're finding this presentation presentation helpful smash the like button down below uh that's what we as coaches try to do is give you presentations that are useful for you to to you know to utilize going forward okay well that's our scenario on facebook what i'm going to do right now though because i don't want to watch facebook all throughout the day awesome tool here right click on the chart go down here to create alert left click that alert right there that was pretty close 302 that's fine that's fair enough what it's going to do for me it's going to alert me when i cross above 300 because then i can check and watch facebook at that point in time we're so close to resistance right now i don't know about you but folks if i'm that close to resistance pretty much hands off i don't want to buy reddit resistance because what happens at resistance well it can come right back off of resistance so i'm normally not too happy to buy right at resistance i want to see it get above there or at least start to watch it as it approaches that level so it's going to alert me at 300 302 to be exact you can change that right here i'm just going to leave it it's fine it's close enough it's a faster moving company but if i was watching it that's what i could do what do those alerts do well they could alert me with the sound on my computer they could alert me via email and what i use is they can alert me with a text message awesome tool within the thinkorswim platform i've had alerts that triggered two years later on a breakout it took that long to break out above a longer term range i participated in the stock when it broke above that range it took two years i wouldn't anticipate this taking that long if we're gonna break it should be quicker right we're looking at a swing trade time frame but the text messages i get mine in about three to five seconds once it hits even if it's been out there for two years great tool if you're not familiar with it it's up here upper right hand corner folks you go to setup you go to application settings you just go to notifications right there you can plug in your email your text you can do all three you can have it given a sound off your computer which is also helpful the alerts i mean the text messages basically do everything of course they can have a sound too but there you have it i'm gonna go ahead i didn't click on that alert did i okay so here we go would you set it up uh 302 click alert create and there you go you see my alert sitting up there awesome tool i encourage you to use it particularly on breakouts you can also use it off bounces off support too do we have time for one more folks i believe we do here is microsoft i really like when i can use well-known companies that are quite established in the market that get a lot of attention because when they bounce there's just more eyes on them and there tends to be some follow through like the market microsoft 2 has found a support level and you'll see this on the the ndx or the nasdaq composite of the nasdaq 100 resting off a prior high level everybody see that level can you see that it started with the longer term test of well it was a longer term high that was the high on microsoft at 2 30 last year we tried to get above it try to get above it we couldn't get above it and then we held shorter term you're seeing an inverted head and shoulders pattern right there everybody see it let me kind of connect these lines here shoulder head shoulder follow through excellent day for microsoft yesterday it looks like about a four to five point five that is a five-point day that's 230 that's 235 that candlestick that i saw yesterday we're seeing yesterday let's zoom in now really uh you know extended above that level so a very strong morning star pattern there's our morning start again just like we saw in the market here's the follow through now what you want to see on those inverted head and shoulders patterns folks for a break out here shoot my mouse is not doing a great job one second let me do it over here sorry so shoulder head shoulder do any of you know what we're going to take out here we've got to take out yes the the neckline and the necklines can be higher like they are in this case see it going higher dang it i'm not doing a great job it's like this it's kind of upward sloping we're just about there it's like that that hang on i can't quite get it all right just something like this anyways shoot you can kind of get draw a straight line you'll get the idea why am i not doing that here we go down here i was doing this so great the other day so i kept trying it now i'm terrible all right i'm just using this off the body the closest the body of the candle there you go i'm just using the closes right here you can use the highs but the closes you broke above actually there you're above it right now so it's actually giving an indication of breaking above the neckline the next class that i do teach which is long options and i don't have uh i only have this class for one more week but it does start at uh let's see three o'clock today if you're interested long options we actually have microsoft we have a long option on microsoft but folks that's a breakout right there it hasn't closed above that level or anything but let's go ahead and just put a trade in anyhow anticipating 100 share trade bounce above that level and did it give it to me it should it's an it's a limit order in there i'll pull it down and just get that filled if i can no it's not going to do it load orders sometimes on these uh paper money just haven't filled but anyways we should be able to i should actually raise it we should go there we go sorry there we go she had to raise it but anyways we put a trade in there folks this is an anticipation of microsoft resuming the long upward trend quick little note on microsoft before we end today i chose microsoft for this class that i teach at one o'clock mountain time today long options and i actually found this information because i utilize it in uh the investing in value stocks and growth and value strategies class last quarter q4 of 2020 that's this time frame right in here go back three one two three there you have it the biggest purchase by hedge funds out there institutions that control over a hundred million dollars okay their their funds are worth at least that or more the biggest purchase shown on what you refer to as the 13f filings the biggest one any guess is what it was it was microsoft we've i've been talking about this all last week in my fundamental classes but it was microsoft folks msft the biggest purchase a number of funds were buying 10 of their entire fund in microsoft through this time frame now if you're getting institutional money and hedge funds they don't know they don't just they're not out there for the bull flag folks they're focused on longer term trades they're focused on companies that uh can extend for a very long period of time because they have to be fundamentally driven and that means that they're anticipating that trying to really continue on up to higher levels so we're kind of building on that 13f and those big holdings but by far microsoft was the biggest addition in q4 i thought you might want to find you might find that interesting as we are identifying a technical support bounce with right now technically a break above resistance line uh break above that upper neckline on that inverted head and shoulders pattern which is occurring at that long term support level right that we were finding right around that 230 range so there it is and we're still seeing some strength there okay well folks it's been great being here with you today and i applaud you for taking time out of your day to learn more about technical analysis um and uh today well this is what we covered uh we did a market overview we went through the process of of trying to make sure that the market at least in terms of the chart showed strength uh in terms of uh the direction directional strength was the trend up on the market yes in fact we came off a an all-time high last week we were getting a bounce off of that support level and a follow-through here so we wanted to make sure that the direction of the market in in terms of top-down strength was on our side talked about building the trend talked about making purchases off of bounce trades or breakout trades uh also you know we looked at short and intermediate term uh that that concept and we focused on short-term trades as we hit our paper money trade examples if any of you want to learn more about how fundamentals work into technicals to try to improve the probability of success these are some classes that i do teach over here just as a side note by the way as i'm jumping in here uh too uh quick note yeah enter intermediate well these are some of the i just wanted to highlight because this is a class i really don't teach it's just a different group but we do we manage a portfolio on friday and then there's a growth of value strategies and picking up on growth and value investing coming up while you're in here by the way great instructor love to have you check out mr cameron may himself teach us some great classes check out what cameron's got as well very good for a number of different classes too but it was on behalf of both cameron and i was great to be here with you today as we did highlight those trade examples folks the trade examples that we looked at today were c s c v f c b x i'm sorry this possible breakout trade we can put alert on that trade as well t-mobile which we did put a trade on t mobile tmus possible breakout and follow-through here we kind of build up strength stronger companies as we were as we went deeper into our group here here was a breakout we're waiting for that breakout for facebook didn't want to put a trade in folks who were so close to resistance here and finally ms ft is maybe the strongest out there right now in terms of what the technicians are looking at some attention uh given to it by the the hedge funds and the institutions as well so that's what we had today great to be here with you i look forward to filling in for john mcnichol i'd love to teach these technical classes a lot of fun folks i just wanted to finish up here with a final disclosure item and set you loose so just wanted to state that in order to demonstrate the function of the platform we do use actual symbols however td ameritrade is not making recommendations or determine the suitability of any security strategy for individual traders on that note everybody have a great rest of the day it's been good being with you and uh we'll see you next time bye-bye you

2021-03-25 21:48

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