NYSE:DFS   Discover Financial Services
Bullish on DFS for earnings . People often ask me how in the world I trade with no indicators. I use a combination of portfolio management, economics, fractals, inter-market analysis and Elliott wave . Most indicators are lagging and only tell you the pattern after it has formed. The inter market analysis allows one to ascertain the general direction of the markets. In order to know if the SPX500 will tank I merely rely on the Japanese yen pairs they help immensely. The economics division is derived from what Biden/congress and Jpow do. They are paramount for the direction of the market. If an announcement is made regarding higher interest rates it will likely come from the FOMC (Federal Open Market Committee). The effect of higher interest typically leads to lower lower borrowing, lower consumption and lower asset prices. This is why when the TNX goes up even a little it can dramatically effect the market especially the tech sector. Interest rates that are going up can lead to lower inflation rate. With less people borrowing as result of interest rates going up less people will consume less consumption will not stimulate the economy which leads to disinflation which is the fall in the growth rate of inflation . I use a modified version of Elliott wave I keep certain concepts like how the markets move in waves that follow fib numbers and that patterns tend to repeat themselves. How do I know if a stock is ready to head to the moon? Its simple really I use fractals or what I like to call LDCs to help determine potential entry points for calls. There is one caveat. Not every stock follow tradable patterns. The criteria for identifying good stocks is threefold. Number 1, I want a stock with market cap greater than $15 B dollars. Number 2, the beta needs to be at least 1. Number 3, the dividend yield should not exceed 2%.

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