US stockmarket hitting record highs again, courtesy of Walmart and because this is a consumer stock pointing to the “spending health” of the American consumer, almost all sectors were in the green. As we discuss in our workshops, some sectors are just going to have a good run more than others. With record highs happening almost every week, people are bound to ask, are we getting a reversal anytime soon? FB which had a good run has not been moving much in the last few days, normally they’d do a good jump any given day. AAPL which notched another record had been a slow-starter before making the climb for the rest of the day, but you can see in the chart it is getting some selling action already within the day. Also check the volume, those are signs of the willingness of the people to make a buying commitment. So there are two things I thought about when thinking of a position in one of the banking stocks:
• Bullish trade – premarket indicators OK, I could buy the stock, however, the highest price achieved was only 20c or so away, we have to consider how much more the stock could appreciate in value. If the breakout has happened already, is there a new catalyst being seen, could they benefit from the earnings performance of other sectors, e.g. consumer stocks and banking stocks (due to credit card business etc).
• Bearish trade – possible as prices are at the top range, but the closing prices have not gone lower, so no sell signal yet.
I am asked “When will the rally end” — as investors/traders we are always keen to know or be able to “predict”. In our workshops we discuss predicting or having an idea of where the market is headed, in a 3-point question based on Dr. Tharp’s Model. But really no one can tell for sure, what “price level” ie. we stop at DOW 21,000 given the inefficiency of the market, really, the rally ends when it ends. What we need to consider is can you afford the risk and is it well worth the reward. And in the US market, while there will always be volatility, there are more record highs in the horizon.
So if you want another income stream, or boosting your investments returns, consider investing/trading on the US market using stocks and options. I spent roughly 2 hours (spread in 3) days to study an investment/trade, monitor it lightly (with my system that I teach) and exit with profits. Of course, one has to learn to invest and so I am happy to offer my back-to-back workshops with specific and actionable ideas “Invest Right Foundation Workshop” and “US Investing Workshop”,,,, some of the topics include:
— Systems that generates profits (which you can adopt or customize)
— Avoiding the “Loss Trap”
— Investment Mindsets and Discipline
— Market Movers
— Developing your Edge (US Investing)
— Income Investing using Options (US Investing)
These will be in Manila on March 4. Email charmel@highheeledtraders.com to reserve your slot and avail of the Early Bird Rates!
To learn more about the workshop topics – please visit this link :
http://highheeledtraders.com/2015/11/20/current-workshops/
