Technically Speaking: Trading the Trend | Pat Mullaly | 11-7-19
Good. Afternoon it's Pat Mullaly again sitting in for James Boyd this is technically speaking trading. The trend weeks to months we're going to discuss a few things today the agenda, basically today is to find. Stocks that could be changing. The. Trend using, a classic, breakout method I'm going to use one of the things that maybe James has sent to you something, we talked about several, years ago and he developed, and then, we're gonna use that top-down approach. And we're gonna make those trades before we do that though let's get into the important information, and remember that you need to carefully, consider. Your investment. Objectives options. Are not suitable for all investors there, are risks, that are inherent to options, trading, futures and Forex can. Create. Speculation. Which is not suitable for all investors spread, straddles other multi leg option strategies can, entail substantial, transaction, cost and remember. That we're gonna look at actual. Symbols, today that does not mean that TD Ameritrade is making, any kind of. Recommendation. And any investment, decision you make is solely your responsibility and. In. Your, self-directed account, past, performance, is not indicative of, future performance transaction. Cost there are important. Factors that go along with those we do have zero commissions those, apply, to online US, Exchange, listed stocks ETFs and, option trades. And. Also, Delta, Gamma Vegas AIDS should we for whatever reason, talk about options. We are really going to stick to stocks. Today so let's get out there and talk. About those. Stocks. Let me get the platform. Opened. And. Well, we're gonna start right, here today so one. Of the things that. You can do you can also you can follow me on Twitter I have some. Scripts, that I have built for. Looking. At comparisons. Of the. In, the industry, groups compared, to the S&P 500, looking, for the strongest industry, groups, I have, industry groups here but what we're going to do today and the whole learning objective, really, is. Is. Getting. Getting. Locked out learning how not. To get, locked out what I mean by locked out how many times have you. To our. I've decided you were going to trade something, and then something happened you don't get in for whatever reason, you've heard something and you watch the the, trade get away from you the market get away from you whatever we, went we're gonna look at a couple of ways to develop. Number, one the idea and, then we're gonna look at how to make those traits because it's very important, that you learn. Your, own the, issues, you have entry. Issues, exit, issues you know fear of entry fear of exits so first of all we're going to look at a top-down, how do we make those decisions and then, let's we're going to make those trades so we're gonna do this by starting not. What the industry group is going to come back to that I'm going to come down into the, sector's, now we did a little bit of this yesterday, and.
We'll. Take a look at those again, and, we. Have this today, I have instead, of a really, long term this it goes from a two day return. Compared, to the S&P 500, all, the way over to sixty three days which basically is a quarter or three months, so, again, we can see here, over. The last sixty three days. Sox, index, the semiconductors. It transports, nothing's radically, changed. But. We do see that some, things are starting to break out and that's what these yellow, lines are, so, we have twenty days twenty, day highs and 45, day highs this, is classic. Trend. Trading methods, that were set up by traders. Years, ago, some. Are fairly fairly. Famous, and. I'm, sure you've heard of them but this is one of their methods, we're gonna use a I'm, gonna because, we're using stocks we're going to manipulate that just a little bit but. Again if you need these scripts. We. Can we can get those set up for you you can join me on. Twitter. So follow me on twitter at p Mullaly, underscore, t da r, excuse me TD Ameritrade. The, p a Mullaly underscore, TD. Ameritrade, if you, if you go in there you can you can private, message me a direct message me and i can get you the the. Scripts, for these or these these can be very helpful so we can see there's been some rotation, because if we look here, over the last little while. The utility, sectors, the, real estate sector, energy. Sector still hanging around there but staples, all coming, back in as the market breaks to the upside as there's, interest, on. Yes. There's interest on why. Things. Should, change. Right. Change in the trend so let's, get in there and show you what I'm talking about. All. Right so what. We have here is this, script I was talking about you can see here we've got red and green red, means it's underperforming. The SP green means it's outperforming. The S&P and, we have these 20 days highs in these 45, day highs so, from. Here we're, going to go in and look at the strong industry group so what I'm going to do here is I'm going to pop this down and I am going to come into. The. Industry. Groups that I've developed here, if I can find them where are my industry, groups there. We go and, there's. A lot of industry groups as you might well know and. If. I click on the. 63. Day highs the, three-month highs here, the, tire index, is at the top but that's that's, just a small index, again computer, hardware furnishes. Furnishings. Industrials. Suppliers. You, know vehicles, semiconductors, we looked at these things yesterday, so, then what I'm going to do is break. These down into, stocks. Strong, stocks that are breaking out but, I'm not just going to I'm. Not going to look for just. Strong fundamentally, sound stocks I'm gonna look at stocks that have broken above, a 45, day high or a 20, day high and. They've got to be breaking out of some kind of a pattern. Here and then we're going to use that too, we're. Going to use that to. Make. Our, trades. Okay, so we've got this. Information here, so, one of the things and just very quickly just to show you how well this works how many of you have heard, of the. Dividend. Aristocrats. Now the dividend aristocrats, or stocks. That have companies, that have been raising their dividends, consistently. Every year for the last 25, years I'm just going to use that kind of as a, just a tool. To. Show you how. Top industries, we've got Air Products, down here again that's like Lynde or, pentair. Down, here General Dynamics Aero. Aerospace. So those, this, is a very, useful, tool, to, find, you know just, where things are flowing however, whatever you watch lists you use try, to identify number, one once the top sector, or what's the top industry, group and then go into your watchlist if you've been watching things, you've watching them for a reason and then, you can look, at those that match those industry, groups because that rotation, is almost, circular, in fashion. That over time we'll, see things rotate, into industrials. And rotate out of industrials, into staples, and you know and then into discretionary, and it just keeps going around in a circle oh, and that's why they call it a rotation, so let me hit the, let. Me hit the screen. Here and I saw I talked a little bit too long on the full screen before I showed the. Actual. Changes. I've made here. All. Right. Where. Did I get the list for the industry groups I made, it you.
Can It's, not that easy it took me along a long, time and. I and again. Follow. Me at P, Mullaly, underscore. TD. Ameritrade, and, if I go back here you. Can. See that right there at P Mullaly underscore, TD Ameritrade, and. Instant. Message me and I'll get you what I can I have, to get some approvals, for some things but not all things today I don't have to do to get you the approval for the scripts but that, industry, group is, quite, long and it's, the Dow Jones industry. Group okay, so, with that, might. Have to mine let's. Get out there to the charts and I've chosen some stocks that's not one of them. And. Let's. Open, up. Make, sure we've got, drawing. Tools. And let's. Look at the big screen, here. I like, to start, as you. Probably see James and, several of us like, to often start with the. S&P, 500 just, kind of do, a checkup you, know as far as the markets go from the neck up see if we see anything unusual well. We, don't it's still the long-term trend is still up we've broken out and we're, heading higher relative, strength is now getting in the overbought, area my conviction indicator. That, if you if, you want to learn more about that there's some webcasts. That I've done back in the early part of September on exactly. What this means it's a very. Is, a very interesting, indicator, that, was really best for picking out bottoms and defining. Panic, and recognizing. When panic comes in but right now no panic, right now the markets moving higher and we're just staying in between like, to see a little more buying and, that's what it's telling us how, much buying compared. To selling there was actually more sellers, yesterday, than there was buyers and today, we're sitting at around 60. Points, up on the in conviction, indicator about up half percent, that's, about that's. Kind, of a bullish. View. Of the market which is which, is typical, but that's, ok let's um get. Out here and. Move. On to, our first stock now. Remember. We're looking for stocks, that have broken above, the the, last the, highest high of the last 45, days now, you. Can you can define that in many, ways but. This, is a trend, trade, style, now we only have 45. Minutes so we're going to move through this area, here I've got a couple of things we're going to look at mainly, the. The the idea, behind this method is, is. Age, old, after a fashion and, we're. Just looking to find to, define, a possible, change in in. Price, and we talked about a lot, of this yesterday a, lot. Of this type of thing you're going to if you follow me I'm. A big proponent you'll. Notice of teaching, examples. Of possible. Accumulation. Or rhea cumulation, so there was a cumulation, over here on I serve it, rallied, and now this is a possible, react you Malaysian, as it's, breaking out today and what, we saw when. We again. Yesterday if you watch these, archived from yesterday we, look for tracks.
In The sand big, work done by the sellers, meaning they're just flushing out and big, work done by the buyers that. Are kind of stealthily, buying on these on these, big, volume pullback so now, this isn't an uptrend probably don't expect to see a lot of a big. Volume on the downside but, if you learn to look at these things you'll see that. Those volumes pick up so there is one, of the tracks in the sand we look for and then we look for this, 45-day. Breakout now, for the people that were originally, developed this they, weren't they didn't consider, technician. They weren't considered theirselves technicians, our fundamental, analyst they're just looking for changes in price and, since. We've, had this run, and. So this is one of the things you got to remember if, this if stocks been coming down and it, breaks into a 20 day high and go, makes a new run that that, might be a place, that you take a trade once it's made a big run then. You may want to use the 45, day the longer term the. Longer term trade, idea. And the reason for that is, the. Reason for that is that. It's. Already had, a big push how much more push does it have in it so let it get that it comes, through this accumulation, area, let's see if there's going to be distribution. And a breakout the, longer the sideways, action often, time the stronger the breakout so we'll. We'll. Look at this and we'll make a trade on Fiserv. In a minute also down here what. I have is. ATR. Now you're, probably some of you might be familiar with ATR, some are not I'm not going to go into deep explanations. Of ATR. ATR. Affords. Us many different things. Smoothing. Out the volatility. Over your, portfolio. We're, going to use it today to define. How. Many shares we're going to buy and where, we're going to get out and how. We're going to scale, into this trade so it's going to be pretty simple but, we're going to look at ATR, an ATR right now is about - 0.44. We're, not going to use today's ATR when we go back to make the trade I'll show you how we're going to do that but, ATR Average True. Range is. How we're going to define our exits, and how we're going to define how, many shares and where we're getting in and when we're getting in. Okay. So there's going to be a scaling, process to. This but right now Fiserv. Strong, strong, volume today earning, strong let's. Move on so here's one it's a little bit different album our album. Are so Albemarle is, in, the. In. The business of. Lithium. As well. As a few other things out there but it is it's probably one of the as. Far as lithium goes that you need for batteries, for cars for home. Storage. Of electricity, those types of things all these different things that are coming on the. Business these guys are fairly volatile, up and down but, when when, they run they have a tendency to runs, and we're not saying this is going to trend to all-time. Highs we're just looking for a trend but, what we see here with Albemarle. Is. It's. Been in a downtrend. Okay. And what do we know now well, it's breaking into a new high on earnings, earnings apparently. They liked what they heard and, so, we're breaking into a new high after. Some accumulation. One of the things about this. Area this, stock, in here we sold off saw, some pretty big sell-off before. Earnings. Couldn't go any lower which, is a fairly good sign and now we're breaking to the upside and we'll use the ATR, on. Albemarle. As. We watch this as, we watch this move higher let me check my. Chats. Here so, Chuck. Says, should. You wait for a retest. You. Can there's nothing, that says that you that. You have to watch. This run and get, in now right but the the in, theory. The rule is that you get in now but some people want to write for that retest, and then, see, it take off from there that's fine you, could somebody could argue that well, if you wait for the retest right. Here. If. You wait for a retest for that to pull back down to that area why, don't you just get in when it's at that area right, so, there's. Some you, know there's some argument, about that the retest, that, they if we think about what the retest is telling us though is this a very important thing that chucks brings up that, retest, if this, takes off and pulls back and moves, higher that. Area, right in here. That's. A sign of strength. A sign, of strength you want to see that sign of strength just, because it's breaking out doesn't mean we won't see people sell into it but again the fear of entry getting, locked out that's, the danger so what we're going to do today, is we're going to limp.
Into This trade if it, pulls back great. If it doesn't we're going to be in the trade and we'll add to the trade and. There'll, be different different styles you can again. You can massage. It to your, method but, the idea is to not get locked out if this, does. One. Of these right if it rallies up and then really doesn't pull back too far and keeps, going and when it's up here and you're. You know here saying I wish I to God and then that's. The idea let's not get let's, not get locked out so that's Oliver morrow and. Then we'll take a look at ups. Now, this is in the transportation. When we looked at the sector's we saw transportation. Was strong when, we looked at the. When. We look in the. Industry. Groups, transportation. Was strong and so, we develop, a, method. Some kind of a watch list to come in and look to see what's happening but if it's breaking out above the 20-day or the 40-day high like. It's happening right here then, what we might want to do is think about putting on a trade on. On. UPS. And. Again very similar in structure, to what, we like to see we, like to see pull backs that. Have some kind of larger volume, and. Price to rally we look at this earnings. Right in here let's, zoom in here on. This. Earnings, the. Reason that's important, is for. Some. Folks. When. We look at what happen. Day in the morning on earnings and then it rallies, back up as it rallies, back up volumes, picking up and, so. That was really more of a bullish. Even. Though it posed lower than the previous day more, of a bullish bias in, there and so then. We look for the. Low. Volume pullback. That. We saw here low, volume pullback and then as it rallies up here look, for the higher volume and. Then looking for it to break and now it hasn't really broken out yet this might be one we say, well we're going to wait we're, gonna wait a minute on this one but, it is so, far making a 45, day high when. We look back in time okay. So that becomes. If you're going to use some kind of method you're gonna have guidelines, you. Have to kind of stick to your guidelines, and. Then, here's one that maybe not on a lot of people's watchlist this is max air technologies, it's a fairly cheap stock it's. Trading at. $11. Now, these guys are in the. Aerospace. They, have. Contracts, with NASA. Propulsion. Those, types of things and. They were went at one time a much. Pricier. Stock, but. They seem to be getting, their act together and the. Question becomes how are we seeing a marked change in the, last couple. Of we. Kor so since, earnings, since earnings and we've seen that. As price rallied, over in here volume. Picked, up it's in this ascending. Type triangle, in here sold, off a lot, of work a lot of work was happening here on this volume and. It was absorbed, by people. Coming in and buying at that at, that area so in this zone down in here now, we're breaking out of these of, these previous. Highs over in here, pushing. To. The upside so, max air might, be something that you would consider but, always consider, the speculative. Side. Of everything, okay, so. With that let's. Move, back, so come, back over we're going to make, some, trades and look at ATR and a. Few other things. All. Right. Let's. Look. At. Scroll. Back here we're, going to look at Fiserv. Okay. So let's look at ATR so what we're going to do with ATR. Is. We're. Going to use it in, a. Method that's going to help, us define. How many shares we're gonna buy and where. Our stop is going to be and, if we're using it at that method for how many shares we're gonna buy where it stops going to be how do we do that well, so today's action, that's some new volatility. Up side volatility. On ATR, what, I'm gonna do is I'm gonna put it on yesterday's. ATR, so let's zoom in here put, it on yesterday's, price. Action and look, at the ATR. Which. We can see the, number right over in here on the lower left. Hello, Anthony, and Deb, I didn't forgot to say hello things.
Were Getting. You. Know I'm still not a technician, our technology, guy I'm a technician chartered, market technician, by the way so. We're gonna use yesterday's. ATR. Which, happens to be around. 220. 225. Or so somewhere in that area so. What we're going to do is we're going to use that ATR, if, we multiply, that ATR, times 3 so, why are we multiplying it, times 3, Pat we're multiplying it times 3. Because. These. Are stocks. In. Stocks. Some. Stocks will really trend but, most the time stocks, are pretty jagged they run they. Relax. They run and they relax so, too tight of an ATR may, stop you out too soon so we're going to use three ATR now that, being said let me show you one thing though let me go back to the market, watch tab and. Let's. Put in 5 in, here, this. Is one of the things that we have programmed, into this list now. The, Fiserv, is not a. Aristocrat. But I just gonna use this come, up here we can see 5 serve up in here now you see these, these. Triggers. The triggers are when it moves above the 20-day high well. We know we've moved above the 20-day high we've actually moved above the 45-day. High and you, see this exit, in here at 99 dollars and 75 cents this, is something. James built years ago, we. And I went back and forth he's, the one that built that we talked about trend trading a certain, system and. This. Is where, he puts the stop on this system so you can use that for your stop I'm using three ATR again nothing's, nothing's. Set. In stone on, anything. So this ATR, is gonna be further away from my from. A stop, as a stop as an exit it's gonna be further away from mine so if we look at where, sorry. Didn't look at that where that turns, out to be there. 9975. Come. Back over to the chart and find, 9975, well, guess where that is it's going to be this low right in here should, be that nope where's he got that low. 9975. So it's this low so it's the lowest low over there a certain period that, he has in there so stopping. Out if it's below. This. This, low here what, I'm gonna do is I'm going to use three ATR which is. $6.75. From, the get in price, because. We're looking at the volatility. On that, stock so. $6.75. This would have been much better earlier, today, but. We have to wait to the class so. Let's see here's. $6.75. From a one 1143. One, one one point 4 3 -. $6.75. Puts. Our stop, at 104. 68. 104. 68, in this -. Some, may. Make some, sense in. That. If it starts to really get down below the. Midpoint in, here, oftentimes, on these sideways, channels, if price breaks below, that midpoint it's, going to get down very. Often times we'll get down to the low side so, we want to be again. When, we when we see Chuck or somebody say hey should we wait for a retest, well, we can wait for that Rita to get in it could still fail or it could fail now and come down in here so we'll, give it at least three ATR move to. Help us get. Out at the right place you can use a larger, nothing. Wrong with a larger stop less, trade. Risk as, far as the downside of getting stopped out too often so we're then we're gonna do is we're not going to jump in on the, whole thing so going with the, idea of, hey. You know maybe. We shouldn't maybe. We should wait for a pullback or what if it doesn't pull back that's the locked out portion, if it doesn't pull back and then we get locked out and we let in and you know that's okay with your guidelines, but let's, think about this if we could put on a small portion of that trade if we, take the, trade and say well right now I'm going to going to trade a, third. Of that but I only want to risk a total, of when everything's, said and done when I buy, all the shares I'm, going to buy I only, want to buy a, risk. $1,000, of the portfolio, in theory, but starting, from today, now that could you, you may have to massage that around as price moves but, here's the way it works so, we're going to take $1,000. And we know our stops going to be it at. 104. 68, so. We're going to divide. We're. Going to divide that. $6.75. Into a thousand, so, our $6.75. Is our. ATR, times, three so, we take a thousand, we divide that by six. 0.75. And that gives us a hundred and should. Give us one hundred and fifty hundred and forty-eight shares so, one, hundred and forty eight shares we're not going to run out there and buy one hundred and forty eight shares right off right, from the get-go what. We're gonna do is we're gonna come over to the trade tab. We. Got five serve in here, and we're. Gonna buy these in, tranches. And fifty, share, increments, and let me show you how we're going to do that because, the eight this is where ATR, comes into play so.
I. Should. Have this nope not in there anymore okay so we're going to come up here we're going to. We're. Going to excuse, me left-click, on, Fiserv. And that shows a hundred, shares well we don't want to buy two, times the, the. Our our. Amount, we're going to buy 50 share increments, so, we're gonna take this hundred shares we're, gonna move that to 50 and then. Once that's in we're looking to buy this right now we're, looking to buy this right now and. Then what we're gonna do is going to come down here to single order, where. It says that the advanced orders down over here on the lower left hand side and what. We'll do is we. Are going to close. That order book click, on single order we're going to click, blast off because we're going to put in some, convey. Ting orders on top, of this and then, what we're going to do is I'm going to right, click here, and I'm going to create, duplicate. Order and, create. Duplicate. Order, and then. So we've got 50 shares now what, we're gonna do is every time this, moves 180. Are higher than our get in price, we're. Going to buy more shares right, and so, if we get in and 111, 13 let's say, 111. 13. Plus. The ATR. Of. 1. RCV. 225. ATR. Of 225, so 111 13 is about, our get in price we're, going to add. 225. To that so, plus, when, you find the plus sign 2.25. And, that. Is going to say, that the next by not. Too far above where we are and there's a reason, for that and that is. We don't want to get. The. Cost. The. The. When, we put all these trades together that the average cost, of all these trades put, together there's three separate trades but all those average costs make a certain, higher. Number, right so we're going to try to get in is fairly, close to, this, area as possible so 338. And. We're. Going to make that good to cancel and. We're going to make the limit a stop, because we have to do this higher, than where it is a buy, stop not. A buy limit we're, going to do that to get in we're, gonna do a buy stop higher. Than where we are and then we're going to take that one. 113. 38. Are going to add another. $2.25. To that and that's, going to give us one 1563. Now. Hopefully you're following along with the psychology. That goes on with this because what, happens, is people. Get. Locked out they say they're gonna do one thing and then, they don't do it so you may have to force yourself to do it now remember, so, what have we done here we're going to buy at a certain price now, and as, price moves up we'll buy more right. Is once, it gets to these once it gets to these areas if it doesn't get to those areas guess, what happens we just buy a little bit right, and so when we think about what Chuck was saying. Okay. Yeah mr., Rhett so mr. s puts out there well let me finish my thought I might get to the chat so. The idea is that if you're gonna be wrong you're often wrong right off the bat and you're. Wrong, with less if it does check back and. Gives. You an. Bounce. Well, great you're, going to capture. That gain back and as it moves higher guess. What you're, getting in you're. Getting. In at a higher price. Right and so the idea is to trade this trend and the, idea is that the, trend, is your friend. You know in, what I like to say it's easier to ride the horse in the direction of the trend but, you've got to get in on the trend so this is a way to, help you get. In when you or may. Have, that issue of fear, of entry, especially, as it moves higher so. Again building, that position, as it moves higher till we get our full position on without taking, too, much total, risk in the portfolio and, then, once this is in we'll set the stop at. At. That, price so those, are all in we're. Going to hit confirm and send and. We. Will send this, one off and. See. What see. What happens hopefully that. Works just fine. Okay let's take a look at the other one here. And. The. Next one is Albemarle. And Oliver. Marl breaking out now this is a bit of a different one it's been in a downtrend and, starting. To move up the other one was an uptrend accumulate. Possible, reoccurring accumulation. Down low Rhea cumulation, this, time the, tracks in the sand may, be telling, us that we have a. Flush. Out people, just finally, diving, out buyers. Coming, in more. People diving out over in here and buyers. Coming in and maybe we'll see a move, to the up sides we're gonna do the same thing we're. Going to buy now and we're, gonna look at the ATR, but, we're not going to use the day's ATR, that's the increased volatility, we're, gonna use yesterday's ATR.
You Know why we don't know what the end of the day is going to be like the end of the day it could have pulled back right then that ATR, could have changed so we're gonna use ATR. From yesterday, and. Look to, trade. This trend and we say trend trade that, means we're looking for weeks to months on this trade that, means you're gonna have to be willing and this, is the hard part for a lot of people be, willing to go through the. Pull backs right be, willing to to. Sweat. It out when it's doing this to. Move to, move higher and let me give you an example and we'll. Take a look at. San. Diego, okay. So here's San Diego this CH. TR we've. Put, this trade on back, in April. April. 5th this, was a trend trade, and. It was the it was defined that way at. The time. This. Dot this. Dump I pointed it out like you can see my might this, dot right in here that's the day we bought on the on April 4th. Right there on the, bounce, pushing, above the high, of the low day and, sticking. Through this thick, or thin and, it's. It's certainly paid off stocks pullback now you can have different rules you could say hey if it breaks down below that lower channel I'm out, nothing's. Set. In stone there, are no musts, right, and so. With. That. Was I just looking at with, ups. Or. Mean with the Albemarle. Let's, make this trade okay so yesterday we have an ATR of 336. It's a $71. Stock three, dollars and 36, cents times 3, that's going to give us our position, size so. 336. Times. 3. And that. Gives us. Ten. Dollars and eight cents. As, far as our risk, goes we're gonna risk $10, that it dropped $10, you notice this one's more volatile, than, the stock that was more, expensive, so that's where I say we smooth, out the volatility, using. The ATR, and so. 10 dollars in 8 cents, and. That, is going to go. Into $1,000. So we're gonna look. At that so how many times does that go into a thousand ten go into $1,000, it goes into $1,000, how many times it, goes into $1,000. 100. Times so that's 100 shares, had. A brain my, brain froze up there I think I time-traveled a little bit so 100 shares we're gonna divide that by three so even. Though this is a cheaper stock we're gonna be buying less shares because of the volatility, involved. In this, ATR, on this stock. Okay. So, oh. What. Did I look at 2:32, what did I say how did I get my three in there thank. You, Trevor, thank you to 32, I, made. Some missed statements, yesterday as well I said, sometimes, I'll say oversold when I mean overbought, so. My apologies, anybody that's listening today and was like scratching, their head okay, so 232. Times. 3. 6. 96 into a thousand. And. That. Is going to give us 157. Cheers so essentially. The same thing will round down to 150. On this, trade we'll come over here to oliver morrow, and. We'll. Do the, exact same thing we're going to blast all. And. We're, gonna change this to 50 shares but. What i saying sometimes you are gonna run into something that's a lower price stock with a higher volatility, that it's going to you're, only going to buy let, your in to buy less shares why because it's a more volatile stock and then, we're gonna right click and create UPS. We're. Gonna right click and, create. Duplicate. Order I thought. We would. Still. Eat that let's try that again. And. Oh. You. Know what got a blast all first down, here single order, blast all and right-click, create. Duplicate. Order create. Duplicate. Order and there's. Going to be 50, shares. Now the stocks trading at 71 85 we've got an ATR so our first Buy is gonna be right now our, second, buy is going to be at. A price two dollars and 32 cents, higher than where, it is right now so 71. 0.85. Plus. Two. Dollars and 32, cents gives, us a, 74. 17, buy price on the second tranche. We. Changed that limit order to buy stop, we're. Going to buy it at a stop higher than where it is right now we're, going to do that good to cancel, and then. We're going to take 74 17, Plus, 2.32. And. That's going to give us 76. 49. As. Our third tron so we're going to buy about. Little. Less than five dollars higher to complete this to, complete this trade so 76. 0.49. Change. The day order, to a good tool cancel change the limit order to stop, blast. All, somebody. 71. 78. Confirm. And send and we're. Filled on our first tranche. Of, Albermarle. Alright. Let's. Go. Back to the charts take. A look at the next one UPS, is fading, we're. Gonna wait on that one a little bit let's, go to, Mac's.
Air Now, this one's the, interesting thing about this one is it's already kind of pulling back like Chuck had mentioned earlier as. Well so everybody knows you, know not everybody knows but if you're new stocks, move up and down, in sideways, so after a break out oftentimes they will check back. We're. For. Edge for the examples, today this is educational, only these are not recommendations. We're just going to go ahead and look, at they purchase, on a Mac Sarah but do the same thing because the point I want to make here is it's, an eleven dollar stock it. Trades. With a. Volume. Of in. The typically. On average in the million so it's not it's. Not some you, know a flyby necessarily, fly-by-night. Stock, its trades, with a lot of liquidity and we like that liquidity so. We look at the yesterday's. Volatility. And that. One is sixty-seven cents okay, so if there's a. Sixty-seven, cents on that volatility. We're. Going to multiply that times three, and. That. Says two dollars, okay so two dollars, is. Going to go into a thousand, dollars five, hundred times so we can buy five hundred shares of, our. Yeah. When to buy five hundred shares of maxxair, but we're gonna do that in three, increments, which means that's. Going to be about a hundred and sixty six dollars, per. Per. Trunch, so let's hop in here come, over to the trade tab, ma. X R and. We're. Going to left-click, by, it we're gonna change this to one sixty six. So. All's were again all's we're trying to do is. All's, we're trying to do is build, into a position. Build. Into that position as it, moves forward if it doesn't move forward then we're going to have a smaller, loss just. By virtue of not having, as many shares as we would have on the full trade so, we've got it on blast all we're. Gonna duplicate, that order right, click duplicate. That order remember advanced, order down here you have to have it on blast, all. So. Gene says do. You don't, you need to put in a stop order we will I'm. Trying to keep this simple, what I'm gonna do is I'm going to go in and put, a stop order in, I've. Tried. To put stop orders in develop, you know if we have this you know if it moves here my stop is going to be here it kind. Of flubs on it so what we'll do is we'll get the first trunch in put the stop on that one and each, time you know so this is your going to be active with this one which, is okay you're, going to watch these and. When you hit that other area you've got to you got to move the stop up you're. Gonna move that stop up and, and, put in the next stop so, that stop and we'll talk about this later when I in in some of my advanced. Charting, classes, how, y8e, are and how we do that right now we're going to keep it fairly simple. In lieu, of the, time, we've got I usually get an hour when. I do my. Other classes, so I've, got I've, got a little just a little bit of time left so we got 166. 1107. And we know it. Is an ATR of. 66. Cents so 111. Are, excuse me eleven. Point. Seven. Three and. Then. The next one is. The. Next one is going to be eleven seventy three. Plus. 60. I. Get. That right. Yeah. Sixty-six. Always. Double check. And. That's. Going to be at twelve dollars and thirty nine cents. We. Change them to stop. Orders the ones we're. Going to put in the in. The waiting list the ones that are higher up and we're going to change those to good to cancel we don't want those to cancel on us make, sure we have an on blast all and we'll, send that off double check your your. Buys in yourselves make sure they're there correct, and we, send those off and, we are in max air on our first tranche. And. So, there you have it so, in. Summary. What. We what, you should know now is, how, to find those stocks those, possible.
Changes In stocks how. To get yourself into, those stocks with small positions, so you don't get locked out how to add to those positions so, top-down approach which sector, is strong which industry, group is strong which, stock using a method is breaking, in to 45 day highs if they're breaking in to the 45 day high or those twenty day high, then. Those. That should be your guideline. To enter, into a small portion of that trade we, enter into the small portion that trade because if it goes against us immediately we lose, a little bit if, it rallies, then, we can add to that position and hopefully. A few of these will, really run if they really run and you have full positions, on they, made that may just make up for, a huge, portion of your. Viewer. Trades if you look at Apple here in this, in, this particular portfolio, here apples 32,000. It is a huge, portion of the. Trades for the year on that. Particular so that's what we're looking for with trend trades it may just be a few trades that, really, help, you along so with, that your. Next next. Step is to practice these and. You. Know, develop. That method you're also your next step is to what. Join, me on Twitter at P Mullaly underscore. TD. Ameritrade, I'll see you soon join me there and I'll get you these these, scripts. Thank you very much.
2019-11-13 03:09
