Fifteen days ago I published my thoughts about various strong "Trending Now" asset classes. These trends could be up or down.
Agree Reality-ADC-remains in its very strong uptrend. It is likely to remain strong. Here are my opinions as to why:
Disclosure - I do own ADC-and added more to my position this past week..
As you can see from the chart above, ADC-got even stronger from 15 days ago.
This stock is only 2.33% off its 52 week high - and momentum indicators (such as full stochastics, daily-hourly-30 minute, etc.) are on the upswing (indicating higher prices).
From a non-technical perspective, the dividend yield is 3.91%, so this is a big attraction to institutions.
Let's review Don's TRADE-MAP approach:
TRADE = 1. T : Time and space (Fractals); 2. R : Repeating Cycles; 3. A : Advancing Trend; 4. D : Declining Trend; 5. E : Energy in Phase Forces.
.....MAP = 6. M : Momentum and Velocity; 7. A : Analysis of Structure; 8. P : Price Performance.
When I mention "Don's Top Ten Technicals", I use the elements of the "TRADE-MAP" approach:
1. The Ichimoku Cloud is rising as well as the 89 day moving average . 2. Prices have risen FAR above the cloud. 3. Prices are trading above the thick red Ichimoku Cloud Conversion line. 4. The thick red conversion line is also rising. 5. The thick black line is the Ki jun-Sen baseline of the Ichimoku Cloud , which is rising and above the cloud.
6. The indicator on the top of the page is RSI / Stochastic , and this is strong.
7. The top middle indicator is vortex and it is strong (green over red). 8. The Top (lower bar-type) indicator measures the "phase energy" of the stock , and this is STRONG (one of the strongest I've ever seen). 9. The green fractal arrows are up (not shown). 10. Look to the far right on the chart, around $48. You will note a yellowish line on top (lips), with black dots below (teeth), and a blue line (jaw) below the black dots. Now, all three are rising, correct? This is where I ask you to use your imagination and envision these three items as the "separated jaws of a feeding alligator". This is a positive indication because the alligator is FEEDING in the uptrend.
The big negative I see is the stock is STILL way ahead of itself (plus three sigma from the moving average mean). What does this equate to in plain English? This stock has traded below $49.03 approximately 99.7% of the time. It's due for a pullback. I plan to buy more AFTER a pullback.
As for a stock that is "TRENDING NOW", ADC-is very strong, and has been for the duration of the chart.
WARNING: I believe the-S&P 500-is very expensive and is kind of like a high wire walker walking between buildings (on the wire) with wind gusts at 40 mph. An unexpected "gust of wind" could easily be the tipping point and the "wire walker" would be in trouble.
I observed (on Friday 07-15-16) when there was an attempted coup in Turkey announced shortly after the-NYSE closed, the-S&P 500 futures immediately started to drop sharply. Something like this could be the unseen 40 mph gust of wind for the market and your portfoilo. If not Turkey, then China, or something else political. Be careful!
Yes, money is flowing into stocks and the averages are GRINDING higher, but be aware of the "MARKET SHOCK" that can blind side you. For protection I have several hedges in my portfolio: (SH-DOG-MYY). SH-are shares short the-S&P 500, DOG-are shares short the-DOW-Industrials, MYY-are shares short the S&P-400 (mid caps).
It works: On the Brexit weekend the stocks I had long still went up, and the short shares also went up. We will have a sharp correction (which is long over due). My advice to all: hedge your positions or wait for at least a 10% decline before going long.
I would like to close with this quote from one of the BEST investment minds ever, Sir John Templeton:
“Bull-markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria.”
I hope this has been entertaining and informative. I hope all of your trade
Agree Reality-ADC-remains in its very strong uptrend. It is likely to remain strong. Here are my opinions as to why:
Disclosure - I do own ADC-and added more to my position this past week..
As you can see from the chart above, ADC-got even stronger from 15 days ago.
This stock is only 2.33% off its 52 week high - and momentum indicators (such as full stochastics, daily-hourly-30 minute, etc.) are on the upswing (indicating higher prices).
From a non-technical perspective, the dividend yield is 3.91%, so this is a big attraction to institutions.
Let's review Don's TRADE-MAP approach:
TRADE = 1. T : Time and space (Fractals); 2. R : Repeating Cycles; 3. A : Advancing Trend; 4. D : Declining Trend; 5. E : Energy in Phase Forces.
.....MAP = 6. M : Momentum and Velocity; 7. A : Analysis of Structure; 8. P : Price Performance.
When I mention "Don's Top Ten Technicals", I use the elements of the "TRADE-MAP" approach:
1. The Ichimoku Cloud is rising as well as the 89 day moving average . 2. Prices have risen FAR above the cloud. 3. Prices are trading above the thick red Ichimoku Cloud Conversion line. 4. The thick red conversion line is also rising. 5. The thick black line is the Ki jun-Sen baseline of the Ichimoku Cloud , which is rising and above the cloud.
6. The indicator on the top of the page is RSI / Stochastic , and this is strong.
7. The top middle indicator is vortex and it is strong (green over red). 8. The Top (lower bar-type) indicator measures the "phase energy" of the stock , and this is STRONG (one of the strongest I've ever seen). 9. The green fractal arrows are up (not shown). 10. Look to the far right on the chart, around $48. You will note a yellowish line on top (lips), with black dots below (teeth), and a blue line (jaw) below the black dots. Now, all three are rising, correct? This is where I ask you to use your imagination and envision these three items as the "separated jaws of a feeding alligator". This is a positive indication because the alligator is FEEDING in the uptrend.
The big negative I see is the stock is STILL way ahead of itself (plus three sigma from the moving average mean). What does this equate to in plain English? This stock has traded below $49.03 approximately 99.7% of the time. It's due for a pullback. I plan to buy more AFTER a pullback.
As for a stock that is "TRENDING NOW", ADC-is very strong, and has been for the duration of the chart.
WARNING: I believe the-S&P 500-is very expensive and is kind of like a high wire walker walking between buildings (on the wire) with wind gusts at 40 mph. An unexpected "gust of wind" could easily be the tipping point and the "wire walker" would be in trouble.
I observed (on Friday 07-15-16) when there was an attempted coup in Turkey announced shortly after the-NYSE closed, the-S&P 500 futures immediately started to drop sharply. Something like this could be the unseen 40 mph gust of wind for the market and your portfoilo. If not Turkey, then China, or something else political. Be careful!
Yes, money is flowing into stocks and the averages are GRINDING higher, but be aware of the "MARKET SHOCK" that can blind side you. For protection I have several hedges in my portfolio: (SH-DOG-MYY). SH-are shares short the-S&P 500, DOG-are shares short the-DOW-Industrials, MYY-are shares short the S&P-400 (mid caps).
It works: On the Brexit weekend the stocks I had long still went up, and the short shares also went up. We will have a sharp correction (which is long over due). My advice to all: hedge your positions or wait for at least a 10% decline before going long.
I would like to close with this quote from one of the BEST investment minds ever, Sir John Templeton:
“Bull-markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria.”
I hope this has been entertaining and informative. I hope all of your trade
