newsflash
september worst month of the year always
and for everything maybe not let's check
it out
good afternoon everybody and welcome to
active trading strategies i'm pat malali
and
this is the first day of uh september
so last month of the quarter and uh yeah
many people worry about the seasonality
in september tendencies are historically
it is the worst month of the year what
does worst mean
worst typically means uh well it's down
maybe a percent or two
uh it's also following august which is
usually another bad month but uh last
month was
really good for august historically the
best uh last time we had a month that
this was
it was this strong was in august of uh
of
86 i think it was so back to the 1980s
so
not always but there's also some
things that from a seasonality
standpoint have some bullish biases
so uh we'll get to that here in a second
you can follow me at twitter
at pimalali underscore tda and
in the um in the chat rooms we have
a uh an enormous amount of wonderful
people if you are new get to know the
people in the chat rooms
uh sal hello anthony uh l
h j yoko uh chowboy
ibram uh uh
let's see mike ricardo freddie marty
grace
john tim uh vivek and
roger so it's all great to see all you
people let's get going and see what we
got going out there
remember that everything we're doing
here is for educational purposes only
and not for uh recommendations
trades that involve minimal potential
benefit can be
impacted by transaction costs especially
options
in order to demonstrate the
functionality platform we are going to
look at actual symbols
that does not mean that uh td
ameritrades making any kind of
recommendation past performance
is not any guarantee of future uh
results or success stop-loss orders are
not a guarantee of execution at that
activation price
all investing involves risk including
the risk of loss no soliciting
photography no part of the presentation
maybe copy recorded a
that prior written consent of td
ameritrade and zero
commissions are for u.s exchange listed
stocks and etfs options have
65 cent contract fee delta gamma vega
theta price time and volatility for
options
so the agenda we're going to take a look
at the market the market is
uh if if a lot of you were around in
in overheated markets that's
you know this is really one of those
parabolic
type of moves we've seen in the markets
but we want to do some checkups we've
been doing this for the last couple of
weeks
the volatility index is is acting a
little strange
uh and we're going to look at some
september seasonality in the
in the in the way of uh
industry groups uh in sectors and then
we'll look at some trade examples so
let's get going
all right you know let's start
and we'll come back to this we're going
to look at seasonality for industrials
and communications we'll also look at
a watch list uh the watch list or you
know the the not to watch this
necessarily but
we'll we we're going to look at the
stocks that are in those sectors and i'm
going to give
a link to those sector companies
that you can put into your think or swim
charting or market watch page
into your quote page if you will uh in
in
a minute but let's take a look at the s
p 500 here
uh price transport and resistance
volume momentum sentiment you know
that's where i tend to lean
uh we've got uh the s p up almost four
tenths of a percent
36 hundredths right now
and we are right around the
uh the even a little bit better than uh
even on uh buyers versus the sellers
so there's not a lot of vindication that
there's a lot of support we can see
if we zoom in here to the s p 500 it's
starting to round off a little bit
we know that the rsi from looking at
this over the last week
is very uh is very overbought actually
got up into
79 was its high point so we know the
momentum is strong
uh but at some point people
get you know air sickness altitude
sickness and
perhaps they will start to pull in let's
take a look at the vix because here's
the strange things for the
for the vix this is our correlation we
look at uh
the vix with the s p 500 should be
negatively correlated which means
it should sit down uh the majority of
the time below
zero and if i draw
a box around zero down to negative
one uh we can see that yeah most time it
spins
below that negative into that negatively
correlated area but
when it reaches up into these zones we
get uh somewhat worried about
possible spikes in volatility out there
in the future so right now
uh the correlation extremely high
coming back in a little bit as we've
seen uh
the the volatility index itself zoom
into the vix
move uh up
and to the right over the last few days
coming back in a little bit uh today as
we can see here the correlation is
starting to normalize but that doesn't
mean
that there's not any volatility
necessarily to come
out in uh out in the future there's
always that chance nobody can predict
but we look at these things and
we get a a a sentiment check remember
when we look at
uh we look at all of these different
things uh sentiment
is one of those momentum is another one
momentum is a form of sentiment but
sentiment can come in
breadth and this is what we look at down
in here and
uh as well as in uh fear
and that's what we're looking at over in
here so a little bit
some interesting action going on there
okay let's pop back over here
and um look at uh
the seasonality for uh you know what
i'm getting ahead of myself one other
thing i wanted to do
uh that goes right along with the
markets
you know continuing to move to the
upside i'm gonna go to our our active
trading
portfolio for this year and
um take a look at um
you know the stocks we own for this year
take a look at a few interesting
things because zoom
zm had their earnings and that's one of
those
work from home stocks all of these
companies that uh
people have been buying and pushing that
stock price up since the march lows
and we know we own a few of those of
course we own apple
apple split i adjusted the price in the
uh today for apple but we've got chewy
here up 408 dollars today
uh you've got come down here to square
square payments up 869.
tdoc up 610 of the few of those that we
own out there uh continuing to push to
the upside we've got to do something
here
about regeneron pharmaceuticals have
been coming back in
uh somewhat um as well uh let's see
iphi up uh fairly strong for the day
so the point is is that when things
become glamorous
when they become uh obvious
everybody starts to pile in and
oftentimes that can cause
parabolic action in those particular
stocks so if you own those
congratulations
be very careful because when they sell
them they may sell them
uh fairly hard so which brings us to the
next idea if september
is the worst month uh of the year
for the s p 500 the new york stock
exchange whatever
uh there are it isn't it's not a hundred
percent number one it is a
very high probability but it's not a
hundred percent
we've seen some pretty big septembers
out there and it doesn't mean
that if it is a poor september that all
sectors are going to uh have a
are going to be a drag on the markets
and all these things are going to pull
down
so to the sectors that do well
we can only look at one because i don't
have a sector for the new communications
out there that i can show you
uh maybe we'll take a look at that in a
couple of weeks by the way
next monday is labor day i do believe
and that means there is
a holiday so the market's going to be
closed next monday
so let's take a look at this the way
we're going to look at seasonality
uh first we're going to look at
seasonality then we're going to look
around for some stocks
of which we you know we've been looking
at industrial stocks
for a while and we know
that they've been doing fairly well
moving up to the upside so the question
is will they continue
and is there anything on the side of
industrials right now so let's take a
look what we're going to do is we're
going to click on that button right
there
that tab it says style and when we click
on style
we're going to come down to chart mode
style
drop down box mouse over chart mode
another window opens up standard means
there's going to be your price chart
and then seasonality is where we'll pop
in here and take a look at right now so
we can see here
uh industrials from a clo on a line
chart closing basis
continuing to rise when we look at
september
they also rise in september
really actually through the end of the
year there's a little bit of upside bias
once we get out of september in in
through october there's
oftentimes an upside bias to the overall
market
as well so we'll see so this is why we
want to look at this the communication
sector that we aren't going to be able
to look at
is looks almost exactly like this so we
get this a little bit of a push to the
upside now one of the things you can do
uh with um the
industrials let me get i'm going to
remove all these things and
you can look at all the years this isn't
this is just
uh the all the years uh together
uh put together and this is the average
price of all the
um industrial sectors over the last uh
so many years what we're going to do up
here is going to pull up style or not
excuse me
this time we're not going to go to style
we're going to go to
the gear and on that gear
we are going to click on that and here
in the gear we're going to go to
appearance okay so we're going to come
up here to appearance
and you can see here it shows the
seasonality chart here seasonality
standard just like
everything we just went through you
don't have to go to style if you don't
want to you can go to
the chart settings up in that gear and
this shows the average
well we can look at every year plus the
average
right now we're just looking at this
year and the average so i'm going to
cancel that so we're looking at this
year
and the average if you want to get a
look at all of the
years or the last five years or so uh
you can come into appearance
click on average come down to yearly
plus average and you'll notice
over in here now we have
all these different uh years that come
into play so let's take a look
uh at uh at these we'll click up uh
click apply and okay and
as we see here uh september
uh back here in uh you can see the dates
what years they are up here in 2015 this
bottom one
it panned out a little while did okay
this one right here this is 2016.
not so much this yellow one 2017
really rocked uh this light pink you
might not be able to see that
uh is a 2019 and it rocked in september
and so so far so good this
dark blue last year again rocking in
september to the upside there's no
guarantee this is not a guarantee this
gives us
just a little bit of an idea of what
typically happens as people rotate
out of certain things into other things
in
uh in september
so the reason i bring this up is a lot
of people will make decisions
and it's okay uh if this is your
decision not to do anything in september
right they don't make any trades in
september or they don't make any trades
in august
if you don't don't don't pick and choose
which years you're going to do it
just always do the same thing if you're
going to use this as some kind of a
method
but we just use this to get a more of a
kind of a checkup kind of a temperature
of what typically happens because what
you're going to hear
all you're going to hear out there is
this is
a terrible year for uh
you know for the market or a terrible
month excuse me for the market it's been
a great year
uh if you don't look at uh february and
march right
all right so by the way there is a
survey in
the uh in the chat if you could please
fill that out only takes a
a second or two there's not a lot of
questions in there but we and
we do love your comments we use that to
try to help
design new uh design ideas around what
you're
uh what you would like to see so we
really appreciate that
for sure um and
i'm not sure who our chat person is
today but hello to gary rod
and lord and okay in louis
cowboy moon jew
laura ramesh just a few mores came in
ramesh says from five weeks market is
rallying continuously in a few charts
look overbought
is the time to book some profit so which
is
the kind of the top of the the reason
for the discussion about
this the market being as strong as it
has been
uh the reason i say that let's go let's
get out in the wayback machine as a
matter of fact i'm gonna
i'm gonna get rid of the rsi on this for
now
and let's look at um
look at the move in here so
if we look back in obviously february
there's a similar
type of a move but let's go back in here
because this is
this is an important distinction to
understand we'll go back five years
daily
because what i want to look at is
the uh when everybody thought that it
couldn't go any higher
back here in 2017 uh
the beginning uh end of the year and the
beginning of the year in 2017 before
it had a big push to the downside it
just the market just
really rocked to the upside so there's
no guarantees that it won't continue to
move to the upside really strong
as a matter of fact let's go back to
that and i probably shouldn't have taken
off
the rsi so let's put that back on
just to get an analog if you will
uh
make sure okay
and we're just gonna have to look at
this with the smaller
lines in here so you can see here it
became the rsi
became extremely overbought uh
its high peaked out at 86. it just
remained overbought over bottle
overbought
as a matter of fact on the weekly chart
it was really overbought so yeah there's
a reason to think
of some uh some things that might be
going on okay
so let's get out there and start talking
about seasonality
we're going to start with industrials
this is
cummins over here you can see we already
own 31 shares of cummins
and we have a stop loss down here so we
need to
consider adding to a position perhaps
we bought cummins uh on the
break of uh resistance
and now it's pulled back to the 20
period moving average
we have a fairly strong volume so far
for the day let me reduce this
rsi a little bit rsi is bouncing up off
the 60 area
price is bouncing from the 20-day
exponential moving average
if you bought this uh with the idea
which we so often do
to add to the position in appropriate
places
this could be a good place to add to the
position a lot of people would look back
here
and zoom in back here a little bit
and say oh man i wish i'd bought there
but i didn't
and you know because it didn't pull back
to the 20-day moving average
let's just fast forward here
and put look where price is well very
similar to
what you could have done back here maybe
you didn't catch the bottom of that day
but we are getting in towards the end of
that day on
a breathing out a relaxation
volume drifting lower nobody really
wanting to sell
higher stronger volume today uh the uh
price bouncing so we need to manage this
right so what we want to do
is add to the position we already have a
a set position to
buy it to 1509 when price moves above
215.09 well it never
did that it kept drifting lower drifting
lower
and so no harm no foul but let me ask
you a question
do you really want to wait till it moves
that far
to to add to your position do we not do
could somebody say
this is a a better place to buy buy low
sell high this is a lower place
the if the if your theory is still
intact your bias is still to the upside
you're looking at the seasonality you're
looking at the momentum with the rsi
strengthening popping up back up through
would you not want to perhaps
lower your buy point down a little bit
a little bit lower maybe above a certain
area and then
raise your stop-loss loss on your
existing
position just in case it continues down
you do not
risk everything that you've made right
so we've got to do two things the first
thing we're going to do
is we'll raise our stop loss if i click
if i
hover over this the stop is
sitting right here at 188
we would probably want to go below uh
say a low right in here what's this low
here
207 24 or perhaps today's low
today's low is 206
12. so let's pull it up to a certain
depth a certain percentage something
repeatable
now there's lots of different ways you
can do this today we'll use
a three percent below today's
low as a as an example
in today's example remember now stop
losses
no guarantee that you're going to get
taken out at that at that price that you
you put in as a part of your risk
management tool
so if today's low being the lowest low
in this series in this longer term two
week three week flag if today's low
is 206 12 we're going to take 206
12 and we're going to multiply that
times
0.97 and that says
our stop is going to be moved up from
188
to 199.93 or 200
or almost 200 dollars so we'll go a
little bit below 93 we'll go
199.85 so
all you have to do now is just grab put
your cursor on that and grab that
and drag that up and we're going to look
for 199.85
and you can put it wherever you wish
we may not be able to squeeze oh there's
86 good enough
and then we get the confirmation so
we're going to close we'll replace the
existing stop order
and we uh of 31 shares and boom
now the next thing we need to do is we
want to add to a position well today is
pretty strong
it's moving above yesterday's low you
could go in there and add that position
right now
if you want a little bit of birth to the
upside
then you could add and you could drag
this lower
and move it to these highs now remember
cummins is an industrial stock what are
we looking at we're looking
we put this position on as industrial
started to to move higher now we're
looking at seasonality we're looking
at the strength that seems to be still
occurring after a little bit of a
short-term weakness
in cummins so the high today right now
is 210.05
for this example we'll go 10 cents above
that 210
uh 15. so we're just going to grab this
and drag that down 2
2 10
try to get 15.
we'll just go with 22 just for an
example 2 10 22
give us a little bit of room we'll
double check we'll replace that
by stop i want you to recognize this is
a
buy stop okay so that means
that we're looking to buy as momentum
picks up and price pushes higher
the idea behind that is uh that momentum
players want us
want some kind of confirmation that
there is some momentum coming in so
we're going to put that buy stop in
there
buy another 31 shares of the
of the position that we had originally
decided to put on
about 62 shares so that's what we shall
do
we'll send that off and boom
it's cancelled it's moved down and away
we go
now we've done that so let's pop over
here
actually let's go back into our account
and take a look around so we've got
cmi which is industrials
and i thought i had some other ones we
were going to look at today
maybe in another account another
portfolio in here
um well uri here's one uh that we own
a uri is in the industrial areas it is
doing well
we bought a 20 a portion
a partial position there so you can see
we've got
some industrials out there and we have
some
internet communications style uh
shares as well so let's do this pop back
over the charts we're going to open up
the side
here and over here on the
on the left hand side i have the
xe industrials i'm going to give you a
link to that i thought that was here
okay i'm going to give you this link
here in a second and this is for the
all the stocks that were that are over
on this side over in here so right now
today
web tech which we're going to take a
look at probably look to
put some kind of a position on is
strongest for the day
dear arnc
some of you know that is a
spin-off from aa from alcoa
and which then these guys spun off
another company
it's just you know spin-off
thank you very much ramesh for the kind
words
yep we'll look at this list here uh but
i want you to know that these list
communications we're going to have
you're going to be able to pull up uh
you're going to be able to put these
links in
to your uh uh setup
in the open shared item you'll put the
links in there and then you can have
those uh sector uh companies all right
let's move on
uh so we've got ropers now this this
almost too
classic after a fashion except for the
fact that the pullback was pretty strong
and so let's zoom in on this take a look
at some of the technicals here we have
our wave
volume so we know what from this what do
we know from our wave volume
we know that as price started to
rally and break to the upside people
were buying
there was a big tranche of buying in
here so if we
do our homework in here they were buying
they kept buying higher lows right in
here that's why we
look at these lows we look to see them
pierce
the low and then rally or not or fail to
get back down to those lows and rally
and look for some kind of change and
certainly that's what we've seen here
now some pretty big volume uh you know
some strong selling coming in here
and so we want to watch what's going on
there
and but the every time if we look at the
rsi
as a as a as an indicator
support every time that we saw
the rsi get into the 50 zone price had a
tendency to bounce
and it's not a hundred percent but it is
bouncing here now
so the question is do you uh looking at
industrials roper technologies another
industrial company
bouncing a a flag play you can always if
you're curious
uh or are uh you know confused take it
to a weekly chart
weekly chart buyers uh consolidation in
here
looks like it was probably accumulation
buyers
and now some more consolidation as it
pulls back into these weekly flags
trying to push to the upside so
let me ask you a question if somebody
bought this looking at this weekly chart
and it was really more of a
consolidation
what if it did something like this over
the next couple of weeks
would that be a horrible thing that you
got in down
at the low zone and then if it
consolidates
base on base and then gets going again
as september
as we move into september a couple weeks
in september would that be a horrible
thing
now that that's uh definitely up to you
to consider
but something to watch is your homework
look go back in time and look at a lot
of different stocks in there but that's
one of the things we might look at with
roper
in the interest of time uri now this is
one we own 20 shares on
uri coming pulling back in this one's
really drawn a flat line this one from a
momentum standpoint
is uh fairly strong it has
uh some uh something we want to consider
and that is the fact that the rsi has
pushed above 70 but right in here the
question becomes is this what we call
it going to be a failure swing we know
the momentum was strong in here
we can say that you know from all and
for all intents and purposes
the rsi is up trending but it's that
60 zone that we want to make sure that
it holds so
in this instance with the share with our
stop number one we want to protect
that position in the this industrial uri
so we'll look at this low in here uh
and over here let's uh
zoom out and we want to add to this
position but we're not going to add
where it is right now we're going to add
20 shares
when it moves above 83.09 okay so when
it gets above these highs over in here
because we want to see some momentum
we got to raise our stop on our existing
20 shares
and this time we'll use one percent
below the swing low
okay so one percent below that swing low
right here
this is the swing low it swings up price
swings up
price swings down for those that don't
un have never heard that term before
you can get into you can learn about
swing trading with john mcnichol
on tuesday mornings
at 9 30 eastern time
so it swings up it swings down and
swings up right now
it met a little bit of resistance and
started to pull back in that's why we
probably
what a lot of investors may want to do
is wait till it
shows its its stripes if you will
and starts to push to the upside but we
know that we have a profit here
we don't want that profit to get away
because our stop loss is down here so we
will look
at this low and go 1 below that low so
172.09
is that low we'll go and take this and
go 172.09
times 0.99 and that's going to give us
170
36. so let it get down below there we're
just going to come over here
put our cursor on there grab it and go
to 170 drag it up till you see that
number
say 170 36 or wherever you wish to put
it could be three percent below
wherever you want uh in the interest of
time we'll just leave it at 170 28.
double check everything send it off now
we've
protected we've taken some risk off the
table we've locked in
if the stop loss which is no guarantee
holds
will we've locked in some gains we want
to add to that position 20
shares of uri at 183.09
once that's filled we'll come in and
change the stop losses
so we click over here to trade uri
try that again
and uh go back and double check 18309 is
where we want to add
so we're just going to right click we're
going to go buy
uh go buy we just buy this one we want
to change this
to a buy stop buy stop why because we
want to buy above the market
as momentum shows that it's picking up
183.09
and that would be 20 cents above the
recent highs
we want to put that good till cancel
okay so if we look at this
we're going to buy 100 shares no we're
going to buy 20 shares because
that is the position size we're trying
to get to 40 shares
on on uri
as it moves higher so we don't take too
much risk
on a buy stop which means at 180 309 or
higher no guarantee
that you will get 18309 you could be 185
if it gaps higher
good till cancel meaning that it's in
there until it gets filled
and we'll just double check everything
send
that off okay that's uh
uri now you can see in there we've got a
tights a fairly tight stop loss
and we shall see what happens here
here's another one
in the industrial sector atlas air
worldwide holdings
and again if we look at how this has
developed it's in an uptrend
recently broke the uptrend drifting
sideways
still showing lots of momentum
so again momentum above 80
often times met with a little bit of a
pullback we don't know how long it'll be
before it pulls back
like we're looking at the s p right now
uh it's a
it hits 79. it's right now
you know slowing this one slowed as well
as we look at price up in here and
starting to pull back does this look
appropriate do you want to possibly put
a trade ups put a trade on
uh on this well how would you do that
well you if you a couple things could
occur here
this could just be another consolidation
like we've seen
in the past in other words uh
drifting drifts down finds some support
rallies up
pulls back down rallies up makes a flag
rallies up so it could be
anything along the lines of another
consolidation
and so let's zoom in on this we know
we've got
a momentum factor going on if we're
looking at momentum what do we know
is right now is stronger than as far as
the factors go
what's stronger than growth what has
been stronger than growth momentum why
because
apple because a lot of the fangs have
been stronger than the actual growth
if you looked at the growth sector as a
sector
momentum is stronger there we can see
momentum here
is strong and holding above 50 pushing
to the upside so let's do a little bit
of work here
uh come in and define those lows
this could just be the first pull back
what often times will happen
and you have to be ready you have to be
ready for this
you're buying near support right buyers
buy it support
sellers sell it resistance so oftentimes
you may see something like this
it may not even make it back uh to this
high up in here
right it may fall back down you need to
be ready for that uh if you
are going to trade the swing on an
active basis
then you might just look at any
rally up into this area which could be a
few dollars
as an area that you might exit that's
all that's happening if it does that
we've seen it before right let's look at
the past
as an analog price bounces
rallies pulls back and then really gets
uh gets going again now there's no
guarantee that that will happen it may
just take off like a rocket
it may fall down so that's uh that's up
to you
how do you decide where to buy
um that would be above one of these
highs over in here
so actually above today's high might be
some place that some
somebody might buy some investors might
buy there we may choose to put in an
order
there as a as somebody's
own decision they may look at it a
totally different way
let's move on i want to get to the
web tech and we can see webtech here
doing
a the old somebody might argue classic
handle what i also want you to recognize
is
this is the link for the sector
companies
so you can put that in uh the setup up
here
go to open shared item and put in
uh cap it is um
capital q lowercase q capital v
lowercase z capital g lowercase
n and capital s if you put that in you
should be able to
uh find those uh those
companies that make up the industrial
sector
but this the interesting thing about
this one here is the fact that
we've had um a uh
nice pullback
and i'm going to highlight these lows in
here
but some people are going to look at
this in a little bit different fashion
and that's okay
as well and that might be the
ubiquitous cup and handle right the cup
and handles are great
uh if you're in a company that is strong
fundamentally and in the right sector
that's rising
along with the market there they're not
some kind of
panacea for all your ills and you just
know that it is a consolidation a
different type of a consolidation
and you can say a bit of a double bottom
in here
and then higher highs and higher lows as
it makes it
its way back up to these highs in here
so
do you wait till it gets past the handle
that's the old method
we may look at this and say well it's
got some uh some
interesting action today uh whoops the
volume um
is uh fairly strong today we still got a
lot of time left in the day we've got
some good momentum
so wabtech we're just going to go ahead
and head in there and buy that and go
three percent below this low right in
here so that low
is a low of 64.64
64.64 times 0.97
okay 0.97 says there's going to be
a uh a stop loss not guaranteed
at 62.70 okay 62.70
so if we get in right now at 68.88
68.88 that's going to give us a 6.17
stop which means if we wanted to risk a
thousand dollars of our portfolio
we would take one thousand dollars
divide that by
our stop amount our trade risk of six
dollars
and seventeen cents and that says we
could buy 162 shares
we're gonna buy 81 because we always go
in a partial just in case
we're wrong right off the bat how when
are you wrong i want you to examine this
if you haven't examined this
are you usually wrong when you near
when you first put the trade on are you
wrong after the trades run a long way
and then pulled all the way back and
and took you out most of the time you're
going to be wrong
closer to when you got in the trade so
let's uh let's always consider that
so we've got uh some interesting things
happening with the
the volume tranches here as we look at
price as we look at price
uh bouncing with good with
buyers coming in bouncing buyers coming
in
buyers are really coming in and again
really coming in now
we've had a fair amount of pullback here
but let's look at where that pullback is
uh that pullback here is
right into that area there so let's go
out there and
come over to the trade tab put in web
wab and in this one we're going to do
everything all at once we're going to
buy the stock uh
we're going to buy 81 shares of the
stock and we're going to put in
a risk management stop now
stop losses are not totally risk
management they just help us define
um where are where we're going to get
out
where we're going to say we're wrong and
how many shares we're going to buy so
that's really where that comes into play
so just because you have a stop in
doesn't mean you're doing the right
thing
so let's say we're going to buy 81
shares
so let me show you how i did that in
case you're new by the way if you want
to learn more about thinkorswim on
thursday afternoons
uh at uh 4 5 30 eastern time
mike fairborne has a wonderful get
getting started with thinker
swim webcast so what i did is i right
clicked on
the numbers the price underneath
underneath the ask i come down to buy
custom
and clicked on with stop okay and that
loads up
two things our buy and our sell now
we're going to put in we're going to go
ahead and buy it today but would still
put in good till cancel
and we know our stop loss is going to be
six dollars and 17 cents below
somewhere below where we get in here uh
it
depends on how long i keep talking and
that's going to be at
62 62 share price
and 20 cents 62 20 i think is what i
said
and then we're going to make that good
till cancel and that way
we will start off with a small position
if it gets rolling
then we'll go you can start off with a
large position especially if you're
really short
term minded you might use the idea of
full position
and scale out is when it starts to move
right now we're just going to put in
confirm and send and we now have
uh webtech uh
in there did i put a stop in on that or
did i put a limited on that
sometimes i get going too fast here
and we'll adjust that we'll put that in
the portfolio okay i want to
move on to so netflix 552
stock same type of action this
communication
sector is typically strong in uh
in september that's not a hundred
percent here is the link uh
to uh the um stocks within
that sector over here
uh some of the the the
bigger stocks in that sector it's not a
huge sector
uh it it really came online a couple
years ago so
netflix facebook google disney charter
communications which we own as well so
this is when we look at it from a
technical standpoint
uh plus if you want that i want to look
at the stocks in that sector
take that lower case t
5 lowercase w uppercase
j uppercase w uppercase
f lowercase a and uh
put that in these come up to setup open
shared item
and put that in if you want to if that
goes too fast
watch the archive but look at this we've
got strong
strong momentum momentum bouncing
off of 60 above 66 a lot of
a lot of investors a lot of technicians
are going to look at that as a
precursor to a possible new trend when
we get above 66
and if it could push above the 70 area
all the better we've been above
70 uh got fairly close what was the high
there
the high there was 77 70 almost 78
so fairly close to 80 showing us
strength in trend it's been above
the 40 area since the middle of march so
that is efficiency of trend
as well if we do some uh
analysis we've got a base pattern
oftentimes what some people will refer
to
base on base and that would be this base
pattern in here
and then now another base pattern okay
so a lot of people
in the old days would consider that uh
uh oftentimes
an indication of possible strength
coming in so
uh netflix popping to the upside bull
flag
on a three-day flag it's up to you
so you could look at this as kind of
this cup with a small
handle coming along in there
really tight pull back from
from a candlestick
pattern we pulled back to the 50 mark
we notice that that's also near the peak
of the double
if you want to call this kind of a
double bottom right
and then bam now taking off so that's
netflix communications
and one more uh in communications you
might
i thought i had another one nope yes i
didn't
uh facebook i think that was the other
one
facebook similar idea only it has
left the the the horses left the barn a
while ago
pulling back a little bit of uh
upside stopping action if you will big
long range day
lots of momentum good volume pulling
back again the halfway point
on facebook all right so
what do we know we know it's the first
of september
we know we're going to hear things the
things that we are going to hear
are going to be that september is the
worst month of the year
always no nothing's a hundred percent uh
and and there's oftentimes other
industry groups
that have a tendency to do well in
september
know what those are we put on a few
trades we've adjusted some trades we've
moved our stops we've added to positions
and
that is part and parcel of how you're
going to grow your account one of the
things that you need to understand
is you may get into trades and uh
and get stopped out and have to get back
in again
oftentimes that makes the difference
between somebody that's successful and
not
having a good re-entry plan uh maybe
maybe something you need to consider
right and that's why we put on partial
positions in our trades because we could
be wrong
we want to lose a little bit so if we
have to put it back on again
we can make back hopefully make back
what
uh what was given up all right remember
please that there is a uh
survey and let me see if i can find that
real quick
see if i can copy and paste that real
quick
put that in there um and we will
uh you know hopefully look at everything
you're doing and appreciate everything
you're looking at everything we're doing
we'll look at all your comments we
really appreciate that
and everybody have a wonderful rest of
your day we'll talk to you again
tomorrow with
technical uh technically speaking and
options is what i'll be doing tomorrow
at
two o'clock eastern time so everything
we're doing is for
educational purposes and you and we and
everyone is responsible for their only
their own decisions that they make in
their self-directed account thank you
very much
and we will talk to you soon
you
