VF Corp. (VFC) just barely reached the standard deviation basis on the yearly chart before smart money rushed in to buy. This is roughly a once-in-a-decade buying opportunity on a stock that yields over 4% dividend. What better way to invest than buying a high dividend stock with a price that's also likely to steadily rise for years?
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Not financial advice. As always anything can happen and trends can end.
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The orange line is the 20-year moving average, which also forms the Bollinger Bands' basis on the yearly chart. I have the chart log-adjusted but not dividend-adjusted. In my experience, I have seen the 20-year moving average act as extremely strong support that is rarely reached except at bottoms during recessions, or during periods of peak fear.
Thanks for sharing. I’m not sure it’s such a rare buying opportunity, however. Because consumer discretionary is not where any smart money is heading right now - and the technicals are a disaster on this one. Notwithstanding, yearly charts and its associated MAs that happen to bounce the MA is no more than a coincidence (or overfitting).
SpyMasterTrades
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@zerorisked, Thank you for your post. Let me ask you to think about it like this: Is consumer discretionary spending worse now than at the low of the Great Recession when unemployment was 10% (this was the last time VFC reached this level)? If not, then there's no reason to believe this trend won't hold if it held even at the worst of the Great Recession. Indeed, but for the fears you've articulated, we would not have reached the 20-year trend line. It's hard to do, but never let your fears about market fundamentals override what the chart is saying. Price discounts everything. Smart money just refers to those who know which direction price is mostly likely to move before it happens by looking at technical data, and because of this they enter positions often at peak fear when most others are capitulating. VFC may move down in the days and/or weeks to come, but it's most likely to be supported by the line on this chart in the long term. With that said nothing is ever guaranteed. Not even keeping money in a bank or under your bed is guaranteed to be safe...
cryptowolfrun
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if someone knows how to read the shot volume for last two weeks share opinion, short volume is higher then normal , reversal?