okay everybody welcome back good to be
here it looks like our sound
everything's coming through good to have
you here today
as we discuss actively managing a
long-term portfolio my name is mike
fairborne it's great to be here with you
i'm joined
with miss connie hill i appreciate
connie being in the chat box does a
great job of answering
questions as they come up and i
appreciate connie being here hello to
you ryan as well
welcome back to all of you veterans and
folks special welcome to the new folks
that are out today
uh do welcome you as always good to have
you here
uh as we do look at a long-term
portfolio now don't let that that term
throw you off
a bit long-term portfolio doesn't mean
all long-term positions sometimes within
this portfolio
we have short-term stocks we have
long-term stocks we sell
put options in this class too to take on
positions so
it's kind of a wide variety of basket
just how you'd normally
manage a longer term portfolio there are
short term short-term positions
long-term positions
i look forward to getting into all those
positions with you in just a bit
in fact we'll take a look at the market
in in pretty good detail initially we'll
look at the market uh
and then what we'll do is we'll review
our our current portfolio
uh we will hit key points though from
this week
specifically trade examples and putting
those trades on
discussing a little bit more about those
positions so look forward to doing that
and adding those stocks to this
portfolio
uh much like a trader investor would do
but uh great to be here with you folks
let's start off with some disclosure
items
so we can get going you can follow me
there my twitter handle
and fairborn underscore tda hello to you
ricardo as well as uh
olfat if i'm pronouncing that correctly
good morning to you
as well looking forward to getting this
underway and going here
all right let's get started folks so uh
initially just want to point out uh the
following presentation is for
educational purposes only it's not a
recommendation
or endorsement of any particular
investment investment strategy
so keeping that in mind past performance
of any security strategies not guarantee
future results for success
uh paper money application is for
education purposes only
uh all investing involves risk can
include the risk of loss
so please be mindful of that as well as
additional points listed here
specifically options are not suitable
for all investors there are special
risks inherent to options trading
that may expose investors potentially
rapid and substantial losses so
please keep that all in mind quick look
at myself folks as you might already
know yes we do combine fundamental and
technical analysis
we do like to try to see or get a
backdrop of a good
performing company in line with
our share price the trend in general
prices going higher
something to help lift that up i do
carry the certified valuation analyst
designation i do apply to this class
as well as the value and investing
webcast too
all right folks so in terms of the
market overview i do want to do
we'll take a look at the s p 500 chart
initially
we'll do the current portfolio overview
we'll we'll take a look at just the key
points this week
with specific trade examples to follow
those
uh right along with with it okay so
having said that what i want to do right
now
is jump over to the screen here
taking a look at spx we did talk about
twitter we'll talk about twitter in just
a second here
but looking at the markets right now in
fact what i'm going to do is just go
full screen here
and kind of highlight with you as we
move over actually to our
bigger screen here i have an opportunity
to utilize that and
love to do that when we have the
opportunity let's see i'm in the camera
perfect
okay so here we go in looking at the
market right now
and as you can see at this point in time
i'm just going to step out just slightly
as i draw some lines in here
but i wanted to point out big picture
here for you okay
so big picture we do have this longer
term line i think many of you have seen
this we've talked about it for sure
before breaking above that important
3400
level now 3400 has been a big run up
we've seen a steady stream
as you can see over here higher highs
higher lows across the board a lot of
you know sort of mini flag patterns in
there but bottom line is
prices have been carrying on up higher
quick note
if we take a look over here at that 3
400.
when the markets get into a scenario
maybe i'll step over here actually to
highlight this side instead yeah
so when we get into this scenario where
the markets are strong enough to break
above
oh a longer term form of
we'll go one more there we go wrong
direction there we go
when the markets get high enough and
they're strong enough to break above
a key resistance level like this and
then we start looking at
other components within the market like
the s p five excuse me the nasdaq 100
the big tech heavy names out there okay
facebook tesla etc these companies that
have
really been strong when the market
breaks out like this folks and you see
this kind of a move coming up out of a
longer term range
frequently now not every time but
frequently
momentum type stocks will kick into gear
here let me just
go on this side well let's just stay
over here i'm going to pull this back
over
actually we'll highlight a few of these
facebook
so a key point on that oh let's try this
i need to be able to click on that now
come on click
sorry folks we'll go over here and pull
this down for a second
and try that what i'm going to have to
do is actually scoot over here real
quick
let me just come on back to the main
screen here and we will click on each of
these
don't know why that was working before
but not now
when we have a scenario when the market
is strong breaking above
long-term resistance like this in many
cases the bigger names out there
that have been moving in line with the
market will tend to be quite strong
and you'll see a number of flag type
patterns kick into gear on there
for example let me show you right now
we're looking at facebook
now a standard flag pattern that we've
discussed previously
strong upward move mild correction
good strong follow through now that's
just a standard
kind of a flag pattern in terms of a
follow-through
but with market strength we're seeing a
lot of those flags
you know that were previously set up
really kind of bouncing and heading
higher in other words you can see it
right there
i'm actually going to take this one out
so you can kind of see a little bit
better but
that's what you're seeing with facebook
now that's been the case with the bigger
names out here many of the fangs
you can see it actually a similar sort
of formation with apple and the key
point is and i've seen this for a number
of
years when the market really is quite
strong
it will revert back to those stronger
positions
in this case technology and you will
maybe in many cases be able to spot
these flag patterns that will give you
that measurement
as the market's breaking above highs
tesla
no different we had kind of a little bit
of a longer
flag pattern over here kind of a
consolidation and it had been taking off
a little bit earlier
but it followed through and kind of
anticipated the market breaking higher
so as we talk about and address sort of
a
a portfolio that has shorter term
positions in it folks this would
certainly
fall into the swing trade category
now thinking in terms of the swing trade
i think many of you
we've taken kind of a survey before the
swing trade is
actually a pretty common sort of a
strategy to utilize on a short-term
basis so
we'll look forward to doing that uh
within this portfolio as a trader
investor might
with future trades depending upon the
current market condition here's one on
google as well
just hit the top four over here as you
can see but once again
there is your flag your bull flag kind
of follow through
each of them look a little bit different
but that's what we're seeing there
okay one other quick note too is we
revert back to the market here
and i just want to point this out to you
we'll zoom back over real quick and just
take a look at this
but when the market itself folks breaks
above
a longer term sideways
channel one of the things that we have
working in our favor here which is so
often the case
when a stock or a market breaks through
resistance is it can have a tendency
to pull back down and hold that level
right so it's interesting to see that
the market has been steady
steadily climbing is it's it's it's
really kind of smooth in terms of this
long upward trend especially
from let's say july on right we've been
steadily going higher here
one other quick note though
is that if we can pull back here and
consolidate
a lot of times you know you're getting
that prior uh resistance
which is right here reverting back now
into support around a key level like
let's say 3400 so
that's something that we can be mindful
of too let's go back over to our screen
here but uh
just something to to keep in mind uh as
prices uh
could pull back and hold there so it's a
longer term level
the only key difference though and and
real consideration here is we're dealing
with
a volatile election time frame
right and i think you know there's just
diverse opinions and it's really a
binary event it's going to be
one side or the other we don't know
which one it's going to be
uh you know people are leaning one way
or the other but it's getting very
volatile
and i i would say that uh maybe there
are
substantial differences from one party
to the next
that could play a role in what the
market does
so whatever that party is and whatever
happens
we as investors traders just need to be
mindful of that
because that is coming up right november
november 3rd but the market's always
anticipated
before it happens so keep that in mind
we have to be careful with that
it's it's it's unique it's a different
time frame
right this doesn't happen every year
once every four years this one seems
possibly a little bit volatile
so within this portfolio we're going to
start looking at maybe some hedging too
coming up in the next few weeks if in
fact the market continues to climb
higher so
a lot a lot to be said there but i
wanted to get it out there get you
thinking about
what might be on the horizon you know in
the next few weeks
something to be looking at i know it was
brought up in a chat
yesterday about the vix really kind of
shooting higher
and i would sort of anticipate the vix
getting up
you know with an expectation of more
volatility upcoming
actually uh as we get closer and closer
to approaching
the election okay
let's see lcl says i only see a head and
shoulders pattern on tesla
let's pull it up right now let's pull it
up and just see what we've got
head and shoulders pattern okay do you
see i've tried to highlight here
just in yellow the standard sort of a
bull flag type pattern which is a strong
upward move
followed by a move coming back that's
going to hold up above
based on the way a lot of technicians
will look at this lcl
is holding above a 50 fibonacci
and then a similar type follow-through
okay to the upside
for example let's use the fibonacci
drawing tool over here to highlight this
once we've selected fibonacci and i just
use it at the bottom right hand corner
in terms of drawing tools right here
click on it one time i pull it up to the
high uh you can see did we hold above 50
percent
just barely right and a lot of times
you'll find support right at 50 percent
well then you get that big follow
through to the upside
which is roughly equivalent to the
initial
upward pull you can see that follow
through do you see it now let me know
i want to make sure we're on the same
page there but the bull flag
we're just seeing quite a few of those
coming up in current market conditions
okay quick note uh as we look at our
portfolio here
i'm just going to review i think a good
way to do this is just to maybe kind of
review our our
targets uh potentially our our
additional entry points stop levels as
well
we're on copa holdings right now and i'm
going to open up this
uh trade this active trader on the right
hand side just so you can see
how we're doing in this account okay
remember a lot of these are just short
term positions there we go
we'll move it on over just a little bit
give us a little bit more room
and we'll um yeah we kind of have to
keep this open here so we can click on
our portfolio holdings as we go through
here okay cool
awesome i'm glad you caught that lcl
because one of the things you'll see
with trends is a lot of price pattern
formations
and price patterns are so essential
because they do give you the
targets they give you the target so a
lot of times a strong upward trend
we're gonna look at one of these in here
that's a triangle you get that with
trends two
but what we're looking for are price
patterns those are so nice because they
give you stop levels
and target points so really happy to see
that you caught on to that and keep an
eye on that folks as we're looking at
trends okay
okay so here is cpa when we put cpn this
is what we're doing we only put 100
shares on
on this stock we did see it coming down
towards a low level now this was a play
on a more normalized economy
we ran up it's there's been that's the
pl open position it's open here right
now so
quite a few points under our belt right
now on this particular stock
it is a big mover you can see resistance
up here
at uh real close to that 60 level now
generally if a stock comes up to 60
and there's maybe a potential price
pattern that's formulating in there
in fact if i show you that right now
i'll kind of zoom in and just kind of
highlight this
look right here just to our point where
we're talking about these flag patterns
do you see the flag pattern kind of
formulating right in there
you know a lot of times you take this
range you either draw it off the top
that's very close to the equivalent or
you draw it
off of the bottom either way it's
showing us
60 is possibly a target now
if the stock breaks above there boom you
know we could
purchase it again or rebuy it but if it
comes up to that resistance level we're
thinking about taking it off the table
this is kind of a bit of a shorter term
trade
okay let's continue on so here's our dfs
position we've got 200 shares on dfs
this was the triangle
we've taken some of it off the table
already this had a big spike initially
we've been in this trade for quite a
while
right discovery financial discover
financial positions a play on the
economy reopening
slowly over time and businesses charging
those cards more
getting paid that way we've given it a
chance to get higher here is the
uh the channel line coming down if we
can break above there
we might extend back up to this
resistance point which we need to watch
very carefully
i raised the stop on this initially like
a trader investor could do
i put it right here that's the mark and
so if we break a new low
below that triangle we're going to take
off our remaining shares and get
out of this position okay everybody
clear on that let me know if you have
any questions and type those into the
chat box that's what we're here for
to help you address but again again the
theme is
the trend is up price pattern's forming
we're utilizing that to give us a sense
of where
uh the the projection of it might go now
normally speaking
oftentimes this could be the distance
between the high and the low
okay the high and the low of those
points in that triangle is the
measurement so what is that in points
right there
it's about 11 points real close to 12
points
we take those 11 points we add that to
the
break out of the range and that's our
target folks
to the upside let's go ahead and show
you that where does that put us
see where it's getting us actually very
close to that 65
level we need to be mindful of that
point
fixed comfort systems interesting
pullback here
this was our initial uh measuring gap
that we listed here on the chart taking
this range here the initial band
adding that same range up top we hit our
target
we held onto the stock in fact i think
we took some off the table
so we're more profitable than we're
actually showing here on the stock
because i think we had a couple hundred
shares
there's just higher profitability than
what's showing this is just on our
initial 100 shares
we're pulling back into this range right
now and i put a band in there so you can
see it
see the resistance which was resistance
is now support and we're holding in this
level
now we've been coming down uh we've
mentioned though that 50 level
near that band it's a big round number
if we can break above
that little range there and tick up
and get us a close above the high of the
low day
that could be the entry point to get in
and that's kind of what our focus is at
this point
because right now we're seeing a bit of
a if you can see it with me
like we've kind of been discussing and
this is really a common
pattern with an upward trend and that is
in fact
a bull flag pattern and that ain't no
bull
it is at this point in time right it's
forming into that range and so what do
we look for here
close above the high the low day we're
going to kind of keep that in mind
if in fact it comes up because we might
re add our position for the next leg
higher
now you can have to go back and look at
other other holdings that we've got that
we've taken a look at
excuse me other archives that we've done
you can find that under education the
education tab
under webcasts up top archive webcast
and we'll give you
a more complete explanation as to why
we were adding those positions you know
what fundamentals were operating behind
the scene so there you go
just go to intermediate uh myself and
then you can find it under here
actively managing a long-term portfolio
you'd have to kind of scroll through and
see a lot of things
that doesn't even have a name assist a
title associated with it but others do
anyhow all right i'm going to minimize
that by the way you can find great
content in there from connie hill as
well
uh does a great job so look out for her
name as well in there all right
let's keep on going now we added this
position uh
and i talked about it a little bit more
this week a position came on now this is
grocery outlet
uh it's it's our newer position i'm
going to add to it
an additional 100 shares on the pullback
here
this you can see is pulling back in
opposite the direction of the trend but
higher highs and higher lows nonetheless
change in trend we talked a little bit
about this
in last night's class let's go ahead and
link this up right there so you can see
it but
yeah it's it's a company that's a
supermarket
owns retail stores and they really focus
in on brand
names but the products are generally 40
to 70 percent cheaper now a lot of the
stores
uh excuse me restaurants bars are closed
in oregon
california washington right now right
through the coronavirus
and the situation there and so this
could be a good
out uh outlet store for those groups one
other quick note
this company has a lot of room to expand
they're only in let's name it one two
three four five six six
states right now they used to be in utah
and believe me i frequented the store
quite a bit
but they've only been public since 2014
they were never public before
they're originally actually from uh
canada is how they did it but there's
their their uh
they're in california now but
interesting uh this particular company
had earnings if we take a look at that
they beat earnings uh
basically double what the estimate was
very close to it
and you're getting that flag kind of a
pullback right there
okay so we're going to add to this
position right now
i'm just going to add an additional 100
shares on the pullback from where we're
at right now so confirm
be mindful of any transaction costs and
send
shouldn't be any transaction costs
because it's an online
us uh exchange listed security right
those are the three key categories
uh for a commission free trade but we've
added to our position a little bit there
a couple hundred shares now individuals
that are not
wanting to take sort of an aggressive
directional approach on the stock
what they could do is they could go in
and simply take a look at maybe some
uh selling some puts whether short term
or longer term this is october
if you want to go down to the 40 and be
willing to collect a premium on that
those investors could go in here and
maybe just
click on the bid price we'll go 170 here
just a single contract if we submit this
through be mindful of transaction costs
again
but what that could do if that did get
filled
it's like that was the last price there
it automatically gets us a hundred and
seventy dollars
premium if the price of the stock closes
below 40
well it gets put to us at 40 but we
still get to collect our premium so it
lowers our
cost basis by a dollar seventy so it'd
be like we're buying down
in the uh the 38 range
but those are just a couple of different
ways that investors might approach
a company that might meet criteria that
they're looking at hpq
one that we talked about we added to
this one last week as you recall
as it was coming down and resting on
support this was our play
on a growth and income type stock and it
did have value too
so really kind of the trifecta growth
value and income
for this particular security uh we liked
it because of
if you go back and take a look at it
return on invested capital was looking
strong there was some growth but there
was some value too
it wasn't really i mean it's not really
priced like a lot of these tech stocks
that have
pes in the thousand range right you can
see how we're doing on that move right
there
uh there is a print there is a dividend
in store
and that could be helpful to take a look
at as well okay but on this one remember
it was really just a kind of a planning
you know
does it have recovery potential does it
have a dividend
does it give us staying power as the
price of the stock
broke above resistance came back down
tested what's now support boom
it comes out why did we like it in the
first place why do we focus in on these
companies well
it comes back down to having an earnings
kind of a thesis right a bias as to the
return on this business this company had
good
return on equity return on invested
capital and it was growing
okay we found this under undervalued
search that had growth components as
well associated with it
just going through our list maxar had
that big run-ups pulled back a little
bit we're just going to keep this open
so you can key
keep a status watch on some of these now
if a stock doesn't work out we get out
of it quick that was maxar right
that's the play on the space force that
the government's involved with
kind of the macro trend helping push
that up a little bit
putting a new satellite in the sky
that's the intention for 2020
that can boost revenues as well uh this
company has been uh
moving uh for quite some time as well
what was the expiration on that go put
landry oh thank you
lara got it okay so
yeah so we're taking a look at that as
well uh we went out a little bit further
and sometimes you go out a little bit
further this was kind of the thinking
there i'm glad
thank you laura for bringing that up and
landra for the question
uh because when you have fundamental
stocks that you think might have a
driver behind the scenes which is what
this class and
and the value and growth and value
strategies class is all about
you tend to go out a little bit longer
in time possibly to capture more of that
premium
because you're maybe more confident that
stock might be going higher
that was a kind of a combo blend right
we put some puts on so
some puts and some directional stock as
well
we bought some stock okay rs reliance
still
had an initial earnings gap up here
notice what we're doing though
we are respecting those levels of
of prior highs here and we're kind of
just going sideways through here
we're able to capture a nice dividend
over here of 62 cents it's maybe it's
it's okay it's still kind of a
high-priced stock so i don't think the
dividend yields
too high it's been dropping as prices
are going up i think we got into it
around 270
a 2.7 percent yield
but still moving on right now uh it's
kind of the cyclical side of our
portfolio we've we've diversified it a
bit
we've actually got health care in here
too uh which has been respecting
prior levels many of these companies
folks were doing really
really really quite well before the
corona
virus hit but as you can see
coming back to a normalized environment
maybe they'll have they'll play a role
here
if we're looking at this big picture yes
i'm showing you
a measurement gap in here at the same
time
with a trend coming higher higher highs
and higher lows can everybody see that
right there
that is a flag pattern that i've kind of
painted over the top there
let me just yeah i mean you can kind of
just see this over here
we'll just go big big screen so you can
kind of see it but just to kind of
highlight
you know once we get into these
companies it's
it's not like we're going to stop and
just get out after we've made a little
bit they've got fundamentals to maybe
drive that trend
you know possibly substantially higher
right and that's the benefit of looking
at fundamentals you can keep driving it
on
up if we look over here now there's your
flag pattern
are we getting a k hold in there or
close above the high to low day
well yeah possibly we are let's take a
look a little bit closer at it here
and see what we we've got over here but
um if we zoom in here
we got to close above the high the low
day yesterday
still carrying a couple hundred shares
in here but the possibility
of a another kind of a large
follow-through possibly here
as i add to these positions i want you
to keep in mind
that yes the elections are coming up and
anytime you add to a position you have
to be very careful especially if you're
anticipating
a binary event it's one party or another
market doesn't know neither do investors
there's a lot of volatility there
depending upon whatever the outcome
might be i'm still anticipating
volatility
but we got the k hold here so on
something like this we can
i'm going to go ahead and add an
additional 100 shares at this point
although it's not a perfect timing event
because it happened yesterday it still
meets for this particular class so we've
upped
our number of shares in anticipation of
a more a bigger follow-through here
uh one thing i do want to say though
when we add to that position
we're increasing our risk so i'm going
to put down below here
a an alert to
stop me out if it does go a little bit
lower i mean i want to be mindful of
what's going on if we break below these
lows
we might consolidate here but if we
break below
i might at least just take off the 100
shares i added right because that's
additional risk
right great to the upside but to the
downside
not as good we've got to watch that risk
always be mindful of that
so it's set about a point lower is where
i'm going to be notified
ok finally wba dragging along the
bottoms
now i remember lcl saying here uh
inverse head and a head and shoulders
pattern this one actually had an
inverted head or inverse head and
shoulders pattern and let's take a look
at it
i really do like this room where i can
go over here i hope you like it as much
as me
hopefully this isn't annoying but it's
really kind of fun because you can point
out a lot of
like cool things on the chart here uh
big picture so shoulder head
shoulder right there and what are we
doing at this point
we're actually testing that level right
now
coming back down to this range and this
was this is a stock that is a dividend
aristocrat they've been raising their
dividends well over 25 years to get on
that list
i think it's more like 30 years but uh
25 years at least and so there's a lot
of
um a good strong history of raising the
dividend we have good staying power
for income mining investors they might
want to be picking up on that dividend
the question is
is what are we doing down here oh
dang it okay let's do this we'll pull
that up again let me just
excuse my reach here but we'll go right
back to it i'm going to point that out
to you right there
right there notice that that's coming
very close
uh to that inverse head and shoulders
pattern so we have a decision to make
we did sell some puts on this so we've
pocketed some premium
but the real question is really is do we
hold that level and go up higher
or not it's been coming down if the
market were to break down
this might actually be quite weak so
having said that
let's jump back over here and i want to
point this out to everybody
that a stop level needs to be in place
uh potentially down around this range we
are down on this stock right now
this was a turnaround potential
turnaround play
we have not seen it yet at or below or
below would be fine but
there you go notify me i might just pull
the trigger on everything and get out
okay
all right oh let's see let's see uh
i just got that from connie appreciate
that kind of see how
should one use the active trader pane
on the chart tab that you have there
okay so what i'm doing first of all i
i go through the portfolio so you can
see gains or losses in the account
we can do that for stocks we cannot do
it for options so i just let you see
where we're doing on this
particular trade all right in addition
to that
you can place orders in here too if you
wanted to if i want to put in a limit
order
you can see it's set at 100 i can change
that of course
over here is it set at 10 no anyways i
can change the number
and it just enables you to do a lot of
additional information if i go down here
i could buy
yeah it's just 10 shares below the the
price where the market is trading at
right now everybody see that right down
here and click on that and boom it would
actually list that for me
let me show you for example let's put it
down here
it puts that order in on the screen to
buy 10 shares
at that point i can actually pull it
down too but a cool way
to actually place orders too if you know
what you're looking at and like i said
we can drag this up and down if i let go
up here it's going to place the order
i don't want to do that i'll pull it
back down and i will
send and then i will cancel it right
there okay
great tool and by the way connie has
some good tutorials on that too
uh in the archives that she does a great
job with okay
folks this week so we talked about geo
already
earlier in the week i talked about xerox
as kind of a value growth play
turnaround it's kind of a combo blend of
a number of different things
now when we look at a company like xerox
and as we examine it
what often comes to mind are key levels
of support and resistance for the entry
okay now as we're looking at it prices
are coming up
to a resistance point let me ask
everybody here a question
what do you do when a stock comes up to
resistance
even if you wanted to buy the stock if
you were interested in it
what do you do when a stock is trading
right at resistance do you automatically
buy
it's a thought out there i want you to
think about it i
say it because i've had to catch myself
before
uh you know
what do i do when a stock is at
resistance if i'm interested in it
do i buy it right at resistance
my guess is you might be saying in the
chat if you are typing in i'd love to
hear
from you because i want you to go
through the same mental process
that i'd go through sometimes myself
i've done it enough times that it sticks
with me
what do i do at resistance i think
through it
i don't buy resistance that's when
stocks come down
the move has already occurred here we
weren't looking at the stock maybe you
were
in this class of the classes i teach i
was not looking at this stock
that's your gain right there and it's a
nice gain off those bottoms right
you've had a good percentage move but
when it gets it resistance
there you go wait for breakout
a put possibly yeah if you're looking to
do a downside move lara absolutely dan i
get it
break out wait for a k hold pulling back
down
exactly you know along those lines what
you're not telling me and which i'm
really happy to see
or i should say not see is buy
because that's been a tendency if you
really want to own something you say
gosh this is great
it's going to sideways channel it's that
resistance buy no
it's at resistance don't do anything
because an opportunity a much better
opportunity could could exist
if it comes back down to a support level
lara said sell a put you know what abs i
mean what if the price comes down here
we sell a put right around 15 or so
that's an incredible
entry point you might want to let the
prices come down a little bit
so the put valuations increase that way
we can
capture more premium right
but everything you know of all the
things you said the thing that you
didn't say is to buy the stock
why do it when there's been a tendency
for it to bounce off that level and come
down
there's some developments within this
company
as a side note carl icahn's taken on a
large position in the stock
something like 12 percent or something
like that there has been
there has been likely some big buying
you know just based on the money flow
so that there could be a tendency notice
that money flow is as high as it's been
i mean we're above those those levels
where the stock was near 40
in terms of our money flow remember what
the money flow does
money flow is a cumulative indicator it
adds up all your buy volumes subtracts
your selling volume
and we've had some buyers coming in here
now we know that
well let me see if i can pull it up carl
icon was one of those buyers
uh in purchasing that but people are
seeing some indications
that this company has a positive
expectancy
in a more normalized environment they're
getting on now getting back to this if
we break above a high
i'm going to do this right now better
just do it on the full screen if i can
do it
um if in fact we do this
so prices are here we break up above
sometimes you break up above
now investors a lot in a lot of cases
folks they're going to be interested
in potentially getting in right there on
the breakout as soon as the breakout
occurs okay
they might be looking at the breakout
however
sometimes that's one entry point right
another
entry point is if prices were to
break up above here and then simply
folks come back down and rest
how many times have we been seeing that
in stocks within our own portfolio here
a lot of times i mean i can think of
three off the top of my head
okay so let's scoot back over here but
three stocks
within our existing portfolio that
actually ran up came back down and
rested here
additional buying opportunities and that
that's the snow it broke through that
resistance level
we talked about this in the growth and
va excuse me value investing stock
class because it had components of some
growth but
but really kind of high on the value
side ppc
was another one we looked at so what i'm
going to do is i'm going to put by the
way before i move on to ppc
i'll put alert over here real quick
do we break above this level i want to
know about it
do we pull back a little bit look at
that mid-range in there
where it was mentioned in the chat okay
k hold possible k
hold in there no doubt about it you know
a k hold could come in
uh there and also a point in time
where we could sell a put down below two
and maybe capture some premium maybe
near that bottom end of the range at 15.
at least a way to start participating
next doc we talked about
uh was pilgrim's pride kind of running
out of time here
i'm going to try to fit yeah we can get
this one no problem uh
coming back this particular company
while i've got the charts up i just want
to show you here's a 15-year chart on it
can everybody see sort of a longer term
weekly chart range where we bounced off
bottoms
consistently again and again
and again over generally
this same lower range can you see that
we're right back into this range right
now we examined this company a little
bit more detail we broke it down we
looked into
uh some of the analyst reports on ppc
okay broke it down this was also in the
value investing class
there's more details there if you want
to take a look at it i could try to put
a link in
after this class is over for the
archives but
if we want to drill down and kind of see
what analysts are saying it's kind of
fun to do when you get stocks that are
weekly levels
what's going on with it i went down to
cfra
they give the best explanation of it let
me zoom in right now
the one thing that caught my attention
for this particular company
is they do have it as a strong buy they
don't have very many companies at a
strong buy
but they chose this and investors
traders might
reference they might come back to
analyst reports
to help them better understand what
analysts are seeing
okay so let's scroll on down let me show
you
a couple of different line items that we
had talked about in the class just real
quickly but
forecasts for more chicken
there were pork and beef plants that
were down
much more during the the covid crisis
mexico is the largest market for chicken
exports
this company has a plant in mexico
they do expect feed prices right that's
an input cost
to be low obviously if our input costs
are
lower well our earnings would be
higher based upon the revenue we're
receiving
that's a positive they lifted uh
from to a strong buy states over here
but they say one of the bigger the
bigger drivers there would likely be
china
now china has begun to purchase
literally
i think in the billion range i don't
have the exact numbers i'd want to give
you that so don't quote me on that
but a lot of food type products
and this is where this company could
possibly get that lift they've begun to
make those purchases so
clearly a value trade but some growth
drivers
in the mix let's zoom back into our
daily chart here once again we do try to
keep a diversified portfolio
as we look at this stock but what i was
going to say is you know what we're
close enough
it's kind of funny because lara had
mentioned that short put
selling a put you know if we were to
sell a put we were looking at 15
on xerox well 15 is that longer term
level
for pilgrim's pride down here too just
so you know
15 is that long-term weekly support
level if you
didn't want to take an aggressive entry
which by the way i have a an alert in
here if in fact we break above
this resistance level to consider for
our portfolio to take
a core stock position but for now
we can look at maybe selling puts as
we're trading near historical levels and
there obviously could be some
fundamental drivers in the mix
so i'm still looking at october here
trying to get more bang for our buck
it's it's price low so the the options
aren't too high
highly priced but maybe a 55 in here
maybe we could start this position off
with uh
a couple two three contracts at 55
long term support level and i'm gonna go
ahead and click on send right now
and so a credit of 163 dollars based
upon
what you're looking at here in terms of
commission uh charges there but uh
possibly you know uh
some decent upside uh i mean every time
that stock has bounced off this level or
near it
it's gone to that or nearly every time
it's gone to that upper range
let's just do it i want to take a look
at it right now
there you go okay so around 35-ish
range so that's kind of a bigger move on
up is it not i mean those are
bigger ranges percentage-wise what are
we looking at
not to say it'll happen again but it's
certainly been the theme
um let's see
so that's about well that's a big
percentage move is it not
i mean we're around 15 you're getting
above 30 so you're getting above the 100
range
what would qualify above that if in fact
it unfolds and we're not sure if it does
we're just trying to
line up our probabilities but break out
over here
that was 1 2 and 3.
you know money flows come back down to
prior lows so we don't see money flow
going higher
starting it off with a less risky
position
okay um
oh how do i know about that carl icahn
on xerox good question
let me show you right now let me pull up
one of these we're going to take off our
let's swap this out for just a second um
switch the gadget
actually just flip the watch list over
here um
uh two i'm sorry let's do i wanna make
sure you can see it
i'm clicking everywhere all right uh not
that one we're gonna switch it out i'm
gonna show you how to switch these
gadgets so what i'm do is go to
live news right there i'm gonna i'm
gonna link this up
to red i'm gonna go into xerox right
there
and what i'm gonna do is i'm to scroll
on down okay it was just in the news i'm
just following news folks when i when we
put these in our portfolio
i just follow live news two three times
a week on these stocks so
there it is carl icahn boosts it uh
there he goes 12.8
percent uh you can read about it i i
just was going to tell you that's what's
in the news and it explains it but uh
that's what was going on with xerox
specifically okay
all right all right folks well
we went through a few stocks we're
actually out of time right now but we
did
uh you know if you found this session
useful that's the intent
please like it down below uh lets me
know that um you know on target
you found it useful for your portfolio
or watch list
but to review uh
we did and i do look at those likes so i
appreciate those coming through
uh we looked at a market overview so we
did an spx chart right we saw how the
market was breaking out above a high
range
initially he said yeah you know that
tends to favor
a lot of companies that have been doing
well recently in the market and
technology had a lot of
flag patterns so that's going to be a
thing that we can possibly you know
we'll tap
into down the road momentum it's just an
opportunity when it does come up if it
comes up again
right now we're kind of a little bit
mindful of the election
as well coming up we talked about that
did the
current portfolio overview we added
those positions we basically kept
everything on right now
but we showed entry levels and stop
points as well
key points from the week we reviewed
those key points we hit stock
specifically
in terms of trade examples explained
where we would put trades on potentially
as a trader where they would do it
and then finally and we looked at xerox
and
ppc on those too we actually also
as part of this week's discussion we
went into more detail on grocery
outlet which is more of a growth in
value kind of more of a growth play
but certainly value if it grows keeps
growing at the rate it's been growing at
okay so on that note nice being here
with you today
uh it does show me that you do show up
into these classes it shows me that you
are
interested in learning more about
fundamentals i encourage you to stay on
that path i look forward
to future you know many future sessions
uh coming up in the in the in the future
and uh so we can learn more about it
okay
and uh it's really it's really fun and
i'm really excited to be here
folks i wanted to finally end here
though to state
in order to demonstrate the function out
of the platform we did use actual
symbols however td ameritrade does not
make any recommendations
or determine the suitability of any
security strategy for individual traders
so on that note
have a nice weekend you deserved it and
i'm very grateful that it is friday
i'm sure you are as well i look forward
to future sessions
catch you next time everybody bye
you
