- Market Overview: S&P 500
- Main Video: High Potential Stocks – 61 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 market digested its recent run-up in pretty orderly fashion. The hardest hit were some of the most extended enterprise software stocks. This is not an indication the sector will continue to go down. It is a sign of a consolidation period that might have started. Put another way, odds for that leading sector to remain a leader are very high, but a few weeks of rebuilding pattern pressure might be what most of these stocks need.
The S&P 500 is tough to interpret. Ultimately it is a chart set-up that implies much higher prices down the road.
We will most likely see some further chop before that move higher materializes.
Maybe it only takes a few more weeks, that would be the orange scenario above.
Maybe we need to move sideways for 2-3 months before a meaningful advance can start.
July and August can be extremely difficult months to trade as many traders leave for summer vacation. That means high volatility moves on low volume can hit the market anytime.
Of course, the best stocks will start sustainable moves ahead of the market. Still, this is a period of the year where you want to avoid margin. The time to be super aggressive will be during the seasonally strong period from September -March.
In this week’s video I show you the reasons why I am slowly getting exposure to potential new trends.
The RGLD, FNV & GPRK charts I review show you how I do it.
2. Main Video: High Potential Stocks – 61 min
Stocks covered in the video:
- Market remains choppy —> Getting stopped out of many positions —> Building exposure to gold stocks
- Stock Review: AMZN, FB, SNAP, AMD, XLNX, MDB, TTD, SMAR ,PLAN, IGV, ETCG, XLE, GPRK, NVTA, RUN, SEDG, GLD, GOLD, RGLD, FNV, WPM
- High Potential Stocks: Not looking to initiate new positions
3. Conclusion
The summer months are often a very tricky and challenging market environment. During difficult market periods the main goal is to protect capital.
If the positions you own are working. Fine. You might want to consider using tighter stops than usual.
Personally, this is the time of the year where I avoid trading on margin. I am simply not very eager to push it like crazy. The time to be super aggressive again will be when summer is over.
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.
Remember: Difficult markets are followed by easier markets!
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/
8. 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]