Technically Speaking: Trading the Trend | James Boyd | 9-5-19
Hello. And welcome, to technically speaking on trading the trend weeks. To months we welcome you here today today's, date September, 5th 2019. My name is James Boyd great to be with you also on this slide we actually have, if you want to follow me on Twitter I know a lot of you ask questions, on Twitter I saw those questions and I'm gonna try to address, those here here. Today at least some of them so, great, to be with you here today we've got a lot of things to actually cover and again. This is really about train the Train weeks to months we're looking for longer-term. Trend, and also, some shorter, term entries bounces. Or breakouts, in that. Longer-term trend yesterday we talked about identifying. Breakouts, that. Might have been timely but, anyway we'll talk about that just real quick before we get started. Remember. That when we talk of if we talk about options. Examples, remember that please make sure that. You, realize that options, are not suitable for all investors there's, special risk America trading options please, make sure you have on your nightstand, the characteristics. And risks of standardized, options, I usually carry in my bag and also, remember that in order to demonstrate the, function out of the platform we will be using the thinkorswim platform, understand. Though that TD Ameritrade, does not make any rep they. Don't recommend, any certain stocks or certain, strategies, that is up to you to decide what you want. To invest in very. Very. Important that you actually feel comfortable with what you're doing that's, why you have paper money and also make sure you're aware of how the strategies. Work, when, we actually talk also about examples, of options remember when we bring up terms like Delta Gamma theta Vega know, how it applies to your, strategy, now. Just real quick as we get started here today, remember. You can follow me on twitter at JB. Underscore. TDA. We'll. Talk about that had a couple questions arise we'll, talk about for example in, this case we're going to look at the index update we did have, some changes, that. Level. Over resistance, okay, finally. Price. Broke above that we're. Going to talk also about. What we're seeing on the S&P and the, Nasdaq, will, also bring up examples of, a script, question, we're, gonna spend the bulk of our time identifying. Shorter. Term bounce, setups, and our. Breakouts, on the. Intermediate charts looking for those trends and we're gonna do it together the. Learning outcome is I want you to be able to identify short term bounces, or breakouts, on your, charts, okay, so we're gonna get some practice here now. We won't look at visa quite yet we talked about that yet yesterday, but let's go ahead and bring up just real quick the, SPX, okay, and let's. Bring this up and if, we zoom in on this what you'll notice is this had really been our level, of resistance, this. 29:37. For, a while remember. That green line that we talked really about yesterday, that, is that tenth that excuse me that is that twenty, day high today the SPX. Broke. Out of the horizontal resistance, if we can close here we. Actually also did see that the price actually hit, the 20-day high and what, you'll notice is it's pretty much if it were to close here in about two hours or so you, would see that we open above resistance and we close above resistance and if the price can close here this, would be a closing.
Price Above the open hence, a green candle, now, one, thing I want to bring out just real quick and I think it might be a little bit easier, for you to see and. I'm gonna try to actually, make. That a little darker, for you there we go I think that'd be a little easier on the eyes so the green candles, there obviously, is saying an update. Okay red, candle, being a down from where it opened now, when we also take a look at the SPX. Excuse, me the end the X same. Thing we're seeing here is that, resistance. Was probably right around the ballpark of seventy, seven, forty seven or so price. Got, above that got. To that twenty two high and you're, actually gonna see that it's if it were close here it's about one point six percent higher now it's not just the point, movement, it's, where, the point, movement, is so. In other words did, it break support, or did, it break resistance, in this, case we actually saw it really break. Distance okay, now, I want, you to also notice that what we're seeing on the chart is when you look at the moving averages, the, blue line and for. Example the red line that blue line is your 10 day moving average and the, red line is your 30 period moving average this, is probably. Telling us that. There's probably, a lot of examples of a, moving. Average crossovers. Be. There's. Probably, a lot of examples of let's say breakouts. Of. Resistance. Now. Yesterday, when we talked about sectors. Ok and industry, groups we, said technology and discretionary. Utilities. And staples, those, are the four sectors we talked about we, continued that end of the day we, talked about two industry, groups can, anyone, remind, me of the two industry, groups we, talked about yesterday, go ahead and type, that in as fast as you can go. Ahead and let me know I'm, not gonna give it to you tell, me what you can remember, now. Let's, go ahead here and let's kind of talk about an example, and I welcome your questions okay please, don't wait to the very end this, class is slated for 45, minutes don't wait till like 43 minutes in and hurry, type in the question but, there was a question on the script, okay, and it was a question really on that one-week. Performance. And a one-month. Performance. So, let me bring something, up just for a quick and I mentioned, yesterday some, of you might not be on Twitter and I, mentioned. To you that on let's, say Twitter you're. Gonna see it we have some examples here and I posted, those actually you ride on let's pull that up so. You're gonna see just let, me give you an update so the question, was. In. Terms, of tracking, price, performance, now. That could be whether it's positive, or, let's, say negative it could be the example as it could be both now. When you take a look at this I want you to actually scroll down so if you go to twitter.com you. Search James Boyd again. My handle, is J Boyd underscore, TD a the, reason why I'm bringing this up is the question was regarding, looking. At the one-week, performance. 1-week, percent and it was also with the one-month percent so if you said I don't have those, there. Right there and I'm gonna talk about those okay. Now the, one thing I want to bring up is when, I take what I'm gonna do is I'm going to show you how to put one of these on and, I'm, also going to show you how to customize this. To. Your liking now. Let's go ahead and I'm gonna go to first, off the market watch tab, market. Watch we've. Always said from day one okay. Day one the, one-week performance. Was to identify, if there is a bull, flag. Paul. Strong. Price appreciation, okay. Don't. Forget that one. Week percent bull flagpole, okay, hard, price, appreciation to, the upside or to the downside. Positive. Like. A GE that, would say probably, more of a bull flagpole. It's a bullish Paul if we, saw that the number was more of a negative number. That would, be probably, more of a potential, a bearish. Pull don't, have too many examples of those now. What's, the purpose of the one month percent, the purpose of the one month percent is to. Identify, trend. Higher. Highs and higher lows. That's, the purpose so, right on that Twitter what you're gonna see is I just posted, a couple 17, minutes ago if you said I like kind of that how do we put those on let's go ahead and show that we're, gonna go to setup we're gonna go right to where it says at the top right and what, we're going to now do is gonna go ahead and say setup open. Shared item and what. I'm gonna do here is I'm going to type in those letters and it's X and, they are case-sensitive X. For. X-ray. 6i. N. Okay. Eight looks. Like a capital, Z will verify, yes. So.
Let's Check this out now if I click on let's say preview, so X, is an x-ray six lowercase. I lowercase, and 8 Z Capital, Z I'm. Gonna click on preview and then. Go to let's say open, now, the one thing is when we do this when I do quickly to your computer if you want to keep, it we're. Just gonna rename it now, I'm going to imagine that we call this the one-week. Percent, of this away mint member, we're going to go up to the very top the heading, at the top and. Anywhere. The. Key that's and I literally mean that, we're up here click. On any of, the headings okay. Right click on any of them any of them take your shot we, right-click on that you're gonna see customized what we're doing is customizing, the headings if we, customize, those headings right there what you'll notice is then. It's going to come up and say look here's, what you have available and then. Here's what your current, set is we, want to scroll down in on the left hand side we want to look for that weekly, percent, and that. Week percent, is right there now this is the bulk of what we're hitting right now if, you don't want that percentage, okay so when we actually click on let's. Click on week percent let's, click on add items. Then, what it does is it moves it over here to, the right not, a big deal okay. Now, one thing I want to make sure and this is the question when. We do this week percent wonder, if you want to change it okay. You, can right click on that column heading and say edit formula. When. You right click on the heading and say edit formula, it will tell you you're. Looking at the last five days to change. To. Where we were five days ago you. Can click right on the editor. And you, can change, that to whatever time, frame your, heart desires, so. What, I said on that Twitter post was five, days is one week twenty. Two days is one month, forty. Four days would be two months sixty, six days would be three months if you, don't want the time frames that I gave feel, free to change that now remember if, you had this, formula, this. Formula you, can copy and paste it the. Biggest actually thing here is you can change it to any time frame you want you can change it to one year which. Would be about two hundred to two days okay. So, I just want to make sure I'm just answering that question there now, are there any questions on. That, now. What I'm gonna do is we said earlier, so let me know if there's any questions on that we. Did mention before is when we look at the ESPY okay, when, we look at the Nasdaq we're. Actually seeing, on the index. Itself, we're. Seeing a lot of for example we're, seeing the indexes. Where, we're getting like a crossover, you, see it now, that tells us we're probably going to see today breakouts. We, talked about that yesterday could you imagine if you didn't do your homework oh that. Would have been painful second. We're, sitting on the indexes, that, that's it we're seeing it maybe an example of a crossover so when it comes to a crossover. There's. Probably a way to filter, it out of that that out let's take a quick look we're gonna bring up and I'm gonna start, with a list. Of the S&P, 100. Okay. Look. At those first and what, I'm gonna do in this case is I'm gonna bring up let's say that, 10 30 and now. What you're gonna see is there's the cross okay. Now, examples. Of crosses. X, actually. Means across its crossing today, the 10 is crossing. Above the 30 X. Plus, 1 means it crossed over a day, ago X, plus, 2 is actually saying it crossed, over two, days ago now. Let's. Take a look at an example here, and if you don't mind I'm gonna bring up the example, I I saw, a little chatter on. Microsoft. Yesterday, now, when we actually look at Microsoft, Microsoft has, a price performance about three and a percent four.
And Three-quarters it's, above, the 10 and the 30 so what does that tell us there's, momentum and there's, some trend here the, other thing we're actually seeing on that chart is we're seeing a cross, over. These. Might, be some technical, filters, or. Criteria. That you might want to see in terms, of maybe a perhaps a bullish trade now, if we come back let's bring up the chart let's bring up Microsoft. Together, and if. We pull this up what you're now gonna see is let's kind of zoom, in, on this now. What you're gonna notice on this chart is let's, kind of draw some lines so we can see the horizontal, line we, can see that but. The one line I don't think we really have on here is when, that stock was really pulling back we. Really had like a downward. Sloping. Line and that downward sloping, line might be something like this or, it. Might be may be something, like this and I think you could really draw, either. Diagonal. Line there okay, now it, doesn't matter if we drew this one and I'll mark, that that, one or, we, actually drew this one the, thing is we're actually seeing, that the price has gotten. Above both. Of those lines so. When stocks go up and they pull back or they flag, you're. Going to see that the resistance. Tends to be downward. Sloping if you're. Not watching the resistance. Break, the. Diagonal. Resistance, you, can be later. In potentially. Getting into a trend. As it breaks, out of, resistance. Now right. On the chart like what we talked about yesterday we, can see the price hit the 20-day high we can see that we, can also that's kind of maybe one technical, setup the other thing we actually see is right on the chart as we see that moving average, crossover. Do, you realize, that. Really. From the time that we crossed over there which is probably on eight six we. Never, had, a crossover. So it's been almost. Up, what, is it almost a month okay. And we. Haven't seen that blue line cross back up so, all through, this period it's really saying James or the investor probably. Don't have a bullish, setup but, when you're actually seeing that blue line cross, back above that red line saying. Momentum. Or that consolidation, could be over and the, momentum is actually coming back in which could lead us to maybe the, Third Point which is starting. To really see a breakout, of, resistance. So when, you see a bullish, setup you might really see not. Just one set up like, a 20-day. High or a, diagonal. Breakout, or a moving, average crossover you might see a couple different, ways to read, it okay. Where you may be getting a couple, different, setups, does. That make sense now, that's very important, here because we're gonna show an example of, that, stock. Now we're gonna right-click on, that price right-click we're, gonna drop, down to where it says buy custom, and we're gonna go where it says with, stop. Now if we say by custom would stop what we're gonna do in this case is let's gonna minimize, this and, let's kind of look and see maybe where that. Resistance. Was, so. That resistance, was right around about 130. 736. That. Could be coming the new potential, support if we. Actually shave let's. Say two to three percent off that's. Really gonna be about 130. For. 61. Now. If we come back down actually look at that and say okay what's that price let me to type that n1 3461. Remember. That's saying if we own the stock and the, stock then goes down to 134. 61, or lower. It's. Gonna be filled but, it's not it doesn't know ahead of time where it's gonna be filled the stock, there. Could be a lot of selling pressure the. Stock can gap over that price it, can, be filled at a lower price level, I'm, gonna change that day to GTC. So we don't have to update the stop daily, and this, will be our first example here today.
Now. I did not see, the answer, to my question and, they. The question, was what, industry. Groups did. We talk about yesterday does, anybody remember we, talked about two of them I don't typically mention, industry groups I don't but, I mentioned to them I'll give you one more shot at it okay type those in now. I'm gonna go ahead and say confirm and send there. It is right there by plus 100 Microsoft, there it is 139. 63. Stop. It 134. 61. And, remember. Is we have a commission, we have a transaction for you to buy the stock and if, we then buy the stock, and the, stock were to decline the value and trigger. The stop. Transaction. Fee to sell now. Yeah. Fred I'm talking, about the, industry. Group okay. The industry. Group not the sector okay, now, what I'm gonna do is I'm gonna put this right in the sections, that where it says JB, I'm gonna put that right there and I'm, gonna say send that now, what you're going to notice is we're. Falling, through what we talked about yesterday. We're. Actually identifying. A. That actually hit the 20-day high we're. Also identifying an. Example. Of something, where you had a moving, average crossover, okay. And we. Saw that based, upon the indexes, we might see a higher, amount of stocks. That are doing moving. Average crossovers. Now, I want, to kind of get to some questions, here and before we actually go to something else, one. Of the questions, and I'm just gonna go back to something so, if we scroll back so, I tried to have a little fun with you on Twitter with this picture of a sheep my grandpa was a sheep farmer but, if we scroll down if you said actually about an hour ago I posted. The example, if you said James I would. Like to see an example of the moving, average crossover, on a, daily. Or I'd, like to see it on a weekly, there. Right there okay. And I also explained, what it really means to get the X or, the x plus 1 or, X, plus 2 and I, showed you a picture of, what that can look like right. There. So. You're gonna see that as well so, if you like that again I just I updated, that earlier, on today, now. The question. That was asked I just want to make sure you can follow. That, now. I'm, gonna go back to one question which was not, gene, actually says, semis. And aerospace. And defense good, job, gray says semiconductors. And aerospace. And defense now, you'll probably notice that when you look at a stock like Nvidia it's. Kind of up today I mean, not like money matters but anyway, we're just saying, Nvidia. Is up about ten dollars when. We actually look at let's say a stock like micron, I mean you know for Thought thinking about semiconductors. These, might be some stocks that an investor might be thinking about micron. A stock, like a mat. Right, we're, seeing a lot of these stocks where they're getting pretty aggressive, moves to the upside or the. One that we mentioned, was, a stock called WDC, that was paper traded, that, poked to the upside here up about 4% here, today that, one was the example we did where it broke up through resistance, so, I'm trying to explain to you how do we find those stocks how. Do we find those sectors and, we were just using what, I'm explaining to you that, those filters. To. Look for momentum and trend. Now, the. Other question is says Alfred's, question is the, weak percent, similar. To, relative, strength, now. Let's let's kind of think about this this is Alfred's, question is the, weekly percent, let's. Go back to this and what I'm gonna do is I'm gonna bring up in this case I'm, gonna bring up the TD, sector, okay, and I'm just going to look at sectors real quick so. If we looked at this list what you'll notice is when. I say that wording. Relative. Strengths we're. Saying what maybe is.
Outperforming. The benchmark, if we said the SP was the benchmark well. If we go look at let's say areas, like this. Industrials. Financials. Technologies. Energies. The. Question, from alfred is can, that that weekly percent, be. An example of what we mean by relative. Strengths what. Do you think my answer is going to be there now, what I did right there is I put in SPX, the. SPX, for, the week is at. Three point nine seven, percent, so, the areas, that are actually above the benchmark are, the areas, that are, showing relative. Strength in the. Last week so. Alfred. The, answer to your question, is dinging. Meaning, yes. Now. It's a it's a numerical. Way to, actually see the relative strength now if you said James one week come on brother that, seems a little short, can. We do something where we back it up a little bit and say well what about that one month percent well let's look at that could. We look at the one month percent let's look and see the benchmark, again there, it is when we look at that you're gonna see it's technology. Discretionary. Staples. Utilities. Deco, isn't. That what we said yesterday maybe. That's how we kind of came to that conclusion and also. When you look at the area let's say industrials. We said aerospace. And defense which, is in the industry it's the industry group of the. Factor of, industrials. Alfred. You, hit the nail on the head so when I say relative strength you can a visually, looking at on the chart. To. See the price, difference, if. You had a stock breaking, out let's. Say like Elle lamb research that we talked about or WD, see some, stocks can break out ahead of maybe the market, in general you, could visually, look at the chart and say that, stock, is doing something different, than the market that's, relative, strength you visually, see it if you, said I don't want to visually, look at each one of them I just want to see, numerically. Where. We can see the stat of what's the benchmark, doing anything. Above the benchmark is exhibiting, relative. Strength how, simple. Is that. Okay. Now here's the deal you, can have the tools but. If you don't open up the toolbox if, you actually don't look at it then, the tools at that point in time it's, worthless now. Let's, go ahead and actually go down so after that's a good question you're only allowed Alfred, one good question per session a little fun there now, let's go down to for example so let's kind of mix this up a little bit what, I'm gonna do is I'm gonna go to the word says the, Nasdaq.
100 Okay, now, what I'm gonna do in this case we're gonna look at the Nasdaq 100 and we're, gonna pull this up and in this case what we're gonna do is we're gonna bring up and we're gonna focus a little bit we, said the learning outcome we want to focus on the bounces, we want to focus on the breakouts, right so. What I'm gonna do we did the example of Dollar Tree yesterday, and what, you'll notice, Daltry. We bought that stock in our example, that, for the week was up 10% now but I'm not gonna look at that right here I'm, gonna look at maybe some other stocks we just see the example, of let's say Microsoft, I'm. Gonna pull up the example, of one of the stocks we don't have to look at the one up at the top maybe. We want to look at an example of let's say a stock like Lulu, okay, now. I just said something very important, do not think, that you have to look at the top of the list okay, you, might say look I might go look at the top of list these are the stocks that are, showing cross. Overs. On, a daily. That's, why it says 10 slash. 30d. For daily. Xx4. Cross over now if, we take a look at this what I want you to notice is if we, take a look at that I'm going to click on Lulu let's, bring up the charts, and let's kind of chart this together, so here we are Lulu now. We pull, up Lulu what you're gonna see and I look going to focus on what we mean by, bounces. Well. When we focus on bounces, what we're looking for is first off we, need to draw. Support. And this. Line, down here this is really acting, as our longer-term, support. We, saw a touch here, we, saw a touch here, and we, saw a touch there and we saw another. Touch. There now. You're gonna see that if we take a look at that that earnings is going to be oh yeah, it's, after. The market, today now like. A balloon. That. Implied, volatility. Is probably pretty high now think about this if you took a balloon. Right. And you, kept blowing on it it, gets pretty big that implied. Volatility. Is probably. Pretty big let's, show some examples, or. An, example, of maybe. A soul, put or a short put vertical on Lulu. Every. Trend trade does not, every, time you trade the trend it does, not have, to be with a stock, position, you, might try to capture, some of the move of the Train through, options, now. If we go back to the trade tab we, know that there's, company.
Risk Today we, know that they could announce good, earnings flat earnings down earnings raise. Their forecasts don't, change the forecast lower the forecast we, know that that is actually pretty. It's. Gonna be sensitive, if, we look at the implied volatility. For. Tomorrow you're gonna see it's 165, that. The, expected. Move for, earnings is 17 dollars which. Really, obviously. Relates, to that number we're seeing on the far right hand side so we, can see that right there now. If we, take a look at this I'm gonna go down in this case to, about, let's say now, Lisa yesterday, said James, first. Off why, not go longer so, I'm going to show the example of going a little bit further out and. I'm going to show the example of going past that forty, day mark now is, it so much farther, no it's nothing there's so much farther that's 43 days okay if we, look to go out of the money okay. Out of the money out, of the money and even, if we would try to go further out of the money that's, really gonna give us a delta now you might, say look since, there is earnings there. Might be excessive, downside, risk we, might choose a delta that's even lower than, we typically. Look at so. If we take a look at this what I'm gonna look at here is I'm going to left click right. On that. 635, okay. Left click right on the 635, if we, left click right on that 635, what it's going to do in this case is we're, gonna move the price to where it says. 645. Now. If we do that what you're gonna notice is I'm gonna come right down to let's say gonna change it to 645. Okay. And we, need to think of in this case wonder. If the stock, goes down and. I'm going to throw out an example maybe a pretty negative one let's. Say the stock goes down ten, per ten dollars and I'm, going to bring up in this case what we call the Theo, price. So, let's go think of this ahead let's kind of think negative here let's, say the stock tomorrow, okay. September. 6th let's. Say the stock goes down ten dollars but, the. Implied, volatility, if we talk about just the stock going down ten dollars those, options, could go from about 625, and, they. Could go up to. 988. Now, here's the problem is that. Does not include so. If we sold it for six and now it's 988, we, could be down about three dollars maybe 350. That. Number, does not include. The. Taking. Out of the implied volatility, it doesn't do that so let's include that let's say that volatility, were to decline, about. Five, percent well let's do that minus. Five percent let's just show an example well. If the stock were to ten. Volatility. Would actually subtract, out let's say 5% what. You're gonna see is it goes from really being about down about if we sell it for six thirty ish six forty and now. What you're gonna see is it would go to. Theoretically. 874. So, we're still down about two dollars and forty cents and that's, assuming, that the stock drops.
Ten. Dollars, and the, implied volatility, is also, that it shrinks let's, say about, five. Percent so, I'm trying to be negative here now we know if the stock were to go the upside well that's not really hard that hard to forecast now. What I'm gonna do in this case is I'm, gonna go back to the order okay. I'm. Going to change this I'm gonna say for single, order first. Triggers, seq, I'm, gonna have the order. Automatically. Set up to buy back okay. Now in this example we're, gonna right click on, that line, say. Create opposite, order let's, do that now. What we're gonna do in this case is we're gonna say look if we could try to grab half. Of. The. Premium, half. Of let's say 645 is let's, say 320, I'm. Gonna type in 3 20 so, we're trying to get 50 percent of the premium now you might choose a lower a higher, number in this, example I'm gonna actually choose, 50. Percent of the premium, if we get in this case. 645. About, half pretty. Close rounded. To the nearest nickel. 320. I'm gonna change, that day to. GTC. Okay, now there's risk with this that's. Why the premium. Is inflated. We've. Kind of try to factor in maybe if it has a bad gap down if it does we're. Also position. Sizing, that. If we, have to buy the stock, at the, strike price is, that. Larger. Than a typical, position, size it would not be the, typical position, size in the paper money account is really, about 175. Or, excuse me it's about 12 $20,000. If, we had to buy a hundred shares of stock at, 175. That. Would be about. 17500. So, we are trying to be careful in terms of position, sizing. Recognize. What, the risk is now, if we go ahead and say confirm and send I'm. Going to put this right in that section of short, puts, right there talked. About those heavily yesterday, and now, what you're going to see is I'm going to click on short puts and. Remember. As we get a credit. Less. The transaction. Fee if. The sole put were to decline in value will. You buy it back for a lesser amount and if. We exit, there's a transaction. Fee that's why we're seeing that number right. There okay. All right so let's actually send that order let's, send it now are there any questions with that okay. Yeah. Andy says three-fitty, okay. Yeah, we did. 320. Ok not, three-fitty. All. Right now let's go back just real quick I'm going to kind of change up the list now. When we also look take a look at some other stocks, so when I look at let's say the list of the Nasdaq, you're, gonna see that there are some stocks we see Mailand, a lower, price stock higher. Priced our stock Lulu does fill. SML. Okay. We. See PayPal, showing, the reversal. We. Also see the example, of AB go that's a little bit higher price and also, Texas, Instruments. As well, now, if we take a look at some of these stocks like we talked about a mat Fastenal. And xpi, now I'm going to talk about a semiconductor, we talked about WD you see yesterday I'm, going to bring up an X P I now. When you take a look at the NX P I and, we, visually. Look at this graph the. First thing that we really notice. Is when we look at it is we, can see we had a diagonal. Line and then. If you take a look at this we really could have had more of a horizontal. Support. Level and that's a horizontal support, level was, probably, right about 98. And change, now. When. We talk about let's, say bounces. We're. Typically, talking about where we recognize, what, was the lowest, most. Recent, red candle, well, the lowest most recent red candle was real that red day right there we. Saw yesterday that, the closing. Price, was. Higher, than, the high of. That. Lowest. Most. Recent. Red, candle. This. Candle. I'm. Just, gonna label that as see. Hold, we call, that close. Above, high. Of, low. Day. Okay. See. A hole close above the high of the low day we, saw the cold yesterday, now. Today, this morning we saw a gap, to the upside, what, does that mean it, means that on the, open of the market, there was more buyers, than sellers or, in, other words the buyers willing to bid the price up higher, and, the. Price actually increased, based upon, demand. Now. If you take a look at that what you're gonna see is on this bigger. Move here today no technician, might look at this and say James yes. I can see we actually went to that twenty and fifty five day high but, maybe we might consider maybe, perhaps a limit. Order at, the, midsection. Of the, candle. So, it's underneath the idea that yes the stock popped but. It might retrace, back into the body of today's.
Trading. Range so let's show this example so. I'm gonna what I'm gonna do is I'm gonna put my cursor right up, on the middle, of today's, trading range it's, really, about 104. 36. So this one is more of an example of a bounce. Yesterday. Closing, above the high of the low day today. Gapping, to the upside touching, the 2255 day high we, can see that the, third thing we actually see is we, see the moving average crossover, I think. We kind of hit that pretty hard here today and what, you're going to notice is we're gonna say wow that move was actually pretty steep, pretty high here today Cody maybe try to put a limit or remember limit orders when you're saying. Look I'd like, to buy the stock but, I want to see if maybe the price can come down a little bit and, maybe get filled in the body of today's trading range now if we go by custom, I'm, gonna change it to let's say we're. Stop. Now. If we change the whist stop it's gonna say 104, 43, now first, off do we know that the stock won't ever come. Down to the middle of the range we don't know that we, don't know so. In that case I'm going to change day to, really. GT. C and then. What we're going to actually look at is where's, the support, level, well that support, level investors, might use that moving, average. Which. Is really about 101, ish, and if, we take about 101, less. Two to three percent that's. Really going to give us a stop, loss of about, 98. 98. Now. If we. Go back and take a look at stock GTC. This. Is the buy limit it's saying that price, or less. So. The stock, has to fill first before, the stop, becomes, valid if, the stock is purchased okay. Then. The stop is valid and of the stock we're gonna fall down to 98 98 or lower. It's. Gonna fill it at the, market price as soon as it can now. In, this case what I'm going to do is I'm going to say confirm. And send, now. What you're going to see is here's the capital, outlay there's. The transaction. Fee if it is filled the stop, then, becomes, valid we, can see that here, there's. The transaction, fee if the stop was actually filled and if. That's what we want to do we're gonna go ahead and actually put that right in that stock section, and so. Now notice here a couple about two weeks ago we, were doing a lot of sold, puts a lot, of short, verticals. Notice. The language here. Seeing. More stock, examples. Why. Well. Seeing. More bounces, off support why, seeing. More examples, of stocks breaking, on a resistance, why, seeing. More stocks hit 22:55 day highs why, seeing. A lot more examples of moving average crossovers. So. The thing as a technician, can't I mean you could just put trades, on randomly, but. If you're saying I'm looking for a certain criteria to be met. You. Can't force that, it has to happen or it doesn't happen and so that's what we're talking about stock, trades because if it actually is hitting those criteria, it's, probably saying that the stock is more directional. Not just neutral but, making a higher high higher low, in other words trending. Now, if we go ahead and say stocks, JB, right there send. That order there, we go now. The. Question, came can I share the chart. Okay. Well, let me just go back so I think are you asking, not Kay Kay, youyou, said are, you, kind of wanting to get maybe get that that. Line right there which again that represents, the 20-day high are, you kind of thinking you want to actually let's say get that line right there that black line that represents, the, 55, day high is. That what you're thinking that on your chart that you'd want to actually see those lines as well okay. Let me know if that's what you're thinking I'll, show you where you could actually grab those now. One thing I want to do is I want to go back to let's say the Dow Jones just, real quick I like.
To Also ask for your thoughts, what. Do you think is, probable. Okay. Let's. Say the index, doing, if this. Was resistance. And let's go to draw this what. Do you think is likely if this was acting as resistance for, a while and then. For example. Okay. I'm just gonna kind of bring this up and. The reason I bring this up is we just did a buy limit order and some, people might be thinking well there's no way, that the stock it's gonna go down well, two days ago some of them might have said there's no way the stock is going to go up now. When we get breakouts, a lot. Of times what we can see now, first point I want to bring up is I want, you to notice that this candle, right there, when. You look at that candle, that was a red candle it, didn't close there i. Scooted. I'll say like this it, didn't it, didn't actually close in terms of being a green. Candle, but. I want you to notice that it still, broke, out on that day it opened above resistance, it closed. Above resistance I want. You to also notice that when it came back, this. Would be viewed as a hammer. Candle. Which, could be also viewed, as. Something. That might be making a higher low. Relative. To where was here, now, what you'll notice is we came, back up to resistance. Right there and then, where you're gonna see is today being the gap now so, the stock I want you to notice the first time that we actually went. Above the resistance we, didn't, hold there that, is not, unusual, but, I want you to notice what can sometimes happen the second time today. Being, the second. Time okay, in. This second, time what we actually see is if today, can actually hold here today it would actually be the, second, time we've actually broke out of resistance, when, we break out of resistance, we make, a higher high, we. Might see in the first one or two days above resistance, the, high put, in and a. Normal. Trend, would not just be higher highs but. Also a higher. Low. Well. The higher low needs to be higher than. 261. But. If you were a technician, and you said look what do you want for your birthday. You would be thinking geez it'd be so nice if we were to pull. Back and, kiss. Okay. Touch, bounce. Whatever. You want to call it okay, hold. Up of the 263. And change so. If that's stock where this index were to pull up and then yank. Back if you're setting some buy limit orders that. Might be pretty probable. That those orders might get filled at this index, were to check. Back. To. Where the old breakout level was that's not unusual that's, typically, out trends. Evolve. So. If we were to see the market tomorrow go down a hundred points, or down a hundred and fifty points that, does not mean it's down trending, okay, watch. The, levels, of support. All. Right now, also, up just. So. I though, some areas that I think as a technician, we'd, probably be watching now. The other thing goes back to is when, we take a look at let's say the the comet regarding. Can we see those um now. We talked about these districts on Twitter if you, go to the post I did yesterday on September 4th we, talked about how to put the twenty fifty five day highs on the, market, watch, ok. The market watch and then.
But What I would also bring up here in this case is I also, want to kind of make make sure you're aware of if we, scroll down just, a little bit, more if you, want to get that on your chart, okay, right. Below here again, right on yesterday, September, fourth what. You're gonna see is, okay. It talks, about how to put those on the chart and those are right, there. And it's. Right there. Okay, now I kind, of use Twitter as a way to kind of share some personal things with you talked about last night watching the US Open etc. Etc a little fun stuff okay it's not all market, stuff it's fun stuff so, I just want to give you a heads up it's okay check. That, out now Keith you fear saying I'm wanting those custom columns you have in the market watch quotes well, if you went to the Twitter and you saw my recent feeds you would pretty much have all of those so. Keith check, that out on Twitter because you'll see that I posted, those as of recently and they have been. Updated. Today, what, we wanted, to do was talk about bounces. And breakouts. We, saw a number, of examples of. Bounces. And probably. More so breakouts. But we also wanted, to include moving. Average crossovers, we, saw that by using scripts. Or a way to scan, or a way to search, we could say all of those we. Saw that really finding, those setups. Wasn't. Really that hard now does that imply, that those stocks are guaranteed, to go up does it is a forecast. A predictor. Then, it's just gonna keep going up no it's not it's, just saying it's meeting the criteria as, of. Currently. Okay, now, remember that in order to demonstrate the function of the platform, we needed to use actual symbols we did, remember. That also TV mayor trade does not make any recommendations. Or determine. Any suitability, of any security of strategy that is up you decide what you want to invest in and also in the chat we have asked wick survey for you five, quick. Questions, about, today's class do, you think some of these tools we mentioned, here today do. You think it's something that you could use today. Next. Week next. Month next, quarter next year these are what's, nice about tools is if they're good tools you. Could use them and make a routine of it or a practice. Of it and all, of a sudden when you start to do that you start to build your confidence you start to make what we call progress. Ah. That's. What we want now coming up just shortly my good friend Ken rosewood be doing in class on, advanced. Ops and strategies, coming, up right at the top of the hour I want to thank you so much for your time your questions try to answer as many of those as I possibly could within, the time limit time limit thank you again so, much and I, stay, tuned for Ken Rose coming up right at the top of the hour and with that said have, a great day I will, teach the growth in value strategies. After, Ken at 4:00. Eastern we. Will be talking about identifying. Growth stocks fundamentally. And also, technically, as well so, with that said stay tune for Ken ro so be coming up just shortly take, care bye-bye.
2019-09-10 23:03
