Some items Webby mentioned in the Friday Video
○ Sector SPDR review
○ XLRE looks good and Mike has noticed that the screens he uses are starting to pick up REITs, which they typically don’t trade.
○ Lots of strength in XLU, look there
○ ARKF Mike trades ARK funds to get a more broad exposure to “the heat” with less single stock risk. These are the ones to use in “this phase”, but ARKF is starting to look tired. Go through those funds and look at the holdings in MarketSurge.
○ XLF is a little slower, but good to balance out portfolio.
○ RSP is “probably the best looking chart out there”. If you are too light in the market, this is a good way to get in or start averaging in.
○ Mike likes PAVE, slow and pokey, but keeps moving up. Also XLI
○ Mike is starting to see oil stocks in his screens over the last month
○ NVDA: Using his weekly RS MA lines, Mike was starting to back away from NVDA. If the short MA had fallen below the RS line, it would have been and “the Grateful Dead” territory, which means sell to him. However, Wednesday it fell below 50dma, but closed slightly above, then Friday, the low stayed above the 50dma and “that’s the kind of action you want to see around a 50dma”, so now he is trading it again and using Wednesday’s low as his exit. But if we start going up and can retake the labeled high of 144.42, he will be adding to it. If it goes through $150, he will be adding to it more. This is one thing Bill taught the team and he got it from Jesse Livermore. This is pyramiding, putting good money after good money.
For down weeks, Bill taught the team to look at the weekly range and closing percentage. If a stock finished at 40% of the range or higher, Bill looked at that as a sign of strength. NVDA closed at 61%.
○ ALAB: Mike has been trading this too. He notes it is hard if you were not in it before the gap up. It looks like it might be forming an ascending base (3 bases right on top of each other.) If it does, the breakout from the third can often create a good run. But if it comes in underneath this week’s low, then he will be backing off.
○ SHOP: showing normal and natural action after a gap up of this nature. Actually “Picture Perfect”. Wishes he had put it on swing trader Friday, that was a mistake. Expect it to move up from here. But it has not been a good stock for a while. Was a great leader that fell apart. Very for like this will become a leader again.
○ DECK: just another signal that retail is strong.