- Market Overview: S&P 500
- Main Video: High Potential Stocks – 1h 03 min
- Conclusion
- Watch List
- New Members: Where To Start & Key Topics
- FAQ Section
1. Market Overview: S&P 500
Click on S&P 500 daily chart to enlarge:
The correction in the indices so far has been more pronounced than I would have expected. Further weakness with a quick V-shape shakeout would be very constructive and bullish.
Let’s see if, going forward, the S&P 500 can consolidate more through time than through price.
They key remains to focus on constructive price action with individual stocks. The strongest ones are the ones we want to focus on.
One of the most important character traits of strong stocks is that they resist selling pressure extremely well. Therefore the strongest stocks will display a price advance that is followed by a correction through time as opposed to an advance being followed by a correction through price.
Whenever you find candidates that display the kind of resilience described above, they are the ones you want to your watch list. The very best are the ones you want to own, as long as the price action in the indices is not outright bearish.
The points outlined above are discussed in detail in this week’s video. The 2 stocks displaying superior relative strength and that I recommend playing close attention to are DOCU and SQ.
2. Main Video: High Potential Stocks – 1h 03 min
Stocks covered in the video:
- Time to be very selective —> Either raise cash or go long stocks displaying superior relative strength
- Stock Review: TSLA, AAPL, AMZN, TEAM, IGV, QRVO, FNV, GTBDF, DOCU, SQ, TLRA, PLAN, MDB, TDOC
- High Potential Stocks: DOCU, SQ
3. Conclusion
For those who prefer to play it safe, raising cash is the best option.
For those who are very aggressive with tight risk control, being long the best stocks within the best sectors, is the way to go.
The difficult periods do serve a purpose. It makes it easier for the strongest ones to shine. Focus on those stocks that show extreme resilience. The stocks that can print new 52 week highs or all-time highs during a weak tape might be the special ones. Those that end up becoming big winners down the road.
4. Watch List
Watch list link with the best charts the market has to offer right now:
Use it to dig deeper, replenish your own watch list and ultimately come up with your own ideas.
All stocks are bad unless they go up. -William O’Neil
Free website: www.tischendorf.com
Twitter: https://twitter.com/Tischendorf
5. New Members: Where To Start & Key Topics
Stop losses – TL 3
https://members.tischendorf.com/2015/12/12/tischendorf-letter-issue-3-what-invalidates-a-trade/
Idealized Optimal Chart Pattern + Pareto’s Principle – TL 46
https://members.tischendorf.com/2016/10/09/tischendorf-letter-issue-46-patience-and-discipline/
Margin – TL 53
https://members.tischendorf.com/2016/11/27/tischendorf-letter-issue-53-melt-up-potential/
Consolidation Patterns – TL 54
https://members.tischendorf.com/2016/12/05/tischendorf-letter-issue-54-monitoring-consolidation-patterns/
Trading Psychology: Fear – ‘That First Dive’ – TL 63
https://members.tischendorf.com/2017/02/05/tischendorf-letter-issue-63-this-is-a-bull-market-keep-it-simple/
Concentrated vs. Diversified Portfolio – TL 84
https://members.tischendorf.com/2017/07/03/tischendorf-letter-issue-84-sector-rotation-continues/
Drawdown & Gain Required To Break Even – TL 146
https://members.tischendorf.com/2018/10/13/tischendorf-letter-issue-146-waiting-for-volatility-to-calm-down/
RSI: An overbought RSI is typical for monster stocks – TL 170
https://members.tischendorf.com/2019/04/20/tischendorf-letter-issue-170-extended-charts-vs-fresh-pattern-pressure/
6. FAQ Section
Q: Do you run a model portfolio? Do you send out trade alerts?
A: There is no model portfolio and I do not provide any kind of buy or sell signals or alerts. I also do not publicly keep track of my personal trades. I’ve been actively trading for 20+ years and I have come to understand that an educational newsletter is in the best interest of members. The focus is on teaching traders ‘How to fish’.
Q: When is the newsletter published?
A: There is no fixed schedule. Depending on how busy I am, the newsletter can be published as early as Friday or late at night on Sunday.
Q: How do I know if the most recent newsletter is already available?
A: There is absolutely nothing you need to do. Whenever a newsletter is published you will get an email notification including a link to the current issue. You can also check on Twitter where I tweet when a new issue has been published.
Q: A video is not loading or has stopped playing. What should I do?
A: Simply hit the refresh or reload button in your browser. That usually solves the problem. The videos are hosted on Vimeo. So if there is a playback issue with Vimeo, there is nothing I can do. These type of issues are very rare. You can always check Vimeo’s status page to see if they are experiencing technical problems: https://www.vimeostatus.com/
Q: How do you scan for stocks?
A: My main scan is a very simple scan looking for stocks with above average volume. There are no secrets involved. It is all about discipline. The key is to do it every day. I use stockcharts.com to run the scan. If you decide to sign up for their chart service please use my email mail@tischendorf.com as a referral. I will then get a free month. Here is the code or scan expression I use: [type = stock] and and [daily volume > 300000] and [daily close < 150] and [daily volume > daily sma(50,daily volume) * 3] and [daily close > daily sma(50,daily close)] and [daily close > 0.55]