- Market Overview: S&P 500
- Main Video: High Potential Stocks – 1h 33 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:
Administrative Note:
The next issue will be published around January 5th.
We will kick off the New Year with a Q&A Session!
Send in your questions to mail@tischendorf.com You can also use the Contact Form on the website.
The more precise your questions are, the more you will benefit from my answers!
A Merry Christmas and a Happy New Year to you and your loved ones!
Looking at the moving average expansion with the S&P 500, we can clearly see a new uptrend is starting to unfold!
This week I produced a rather extensive video. As there will be no newsletter next week you should have enough time to watch the video while enjoying the Holidays!
The main reason why I decided to go through monthly charts is of course to benefit from the many advantages monthly charts have to offer. Here are the main ones that come to mind:
- Monthly charts help you tune out the noise
- Monthly charts make it easier to identify technical chart patterns
- Monthly charts make it easier to compute technical price targets
- Monthly charts make it easier to gauge if a stock/index/ETF is extended or if a run has just started
The last point is probably the most important one. Looking at the big picture simply helps put things into perspective.
One example that currently comes to mind would be the average trader looking at individual Biotech highflyers and come up with the conclusion that the whole Biotech sector must be way overextended.
Taking a closer look at the monthly IBB – Biotech ETF you will immediately come to a completely different conclusion. Biotech hasn’t even broken out yet! If Biotech continues to move higher this will kick off a brand new uptrend. Keep in mind that new trends can last much longer than most people would expect.
Two big cap Biotech leaders have already emerged, breaking out to new all-time highs ahead of the indices: AMGN + VRTX.
In the video I discuss a few indices, several key industries, leading sectors and many bellwether stocks. Enjoy!
2. Main Video: High Potential Stocks – 1h 33 min
Stocks covered in the video:
- Big Picture Monthly Chart Review —> Difficult market periods typically are followed by easy market periods. —> Continue to tune out the noise. —> Q&A Session to kick off the New Year on Jan 5th. Send in your questions!
- Stock Review: $COMP, $SPX, IWM, $WTIC, RJA, $GOLD, $SILVER, SMH, XSD, IBB, XBI, SBIO, TSLA, TSM, NVDA, SPLK, G, QRVO, SWKS, LITE, DOCU, OKTA, ISRG, AMGN, VRTX, GPRK, AXU, KL, WDOFF, GTBDF
- High Potential Stocks: Not looking to initiate new positions
3. Conclusion
During bull markets you tune out the noise and you avoid the temptation to call for tops. Ride the uptrend until it ends. As Justin Mamis correctly stated, that doesn’t mean you want to become a blind bull: ‘When a stock doesn’t do what you expect it to do, sell it.’
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.
When a stock doesn’t do what you expect it to do, sell it. -Justin Mamis
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/
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.
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]