Sunday, January 21, 2018

Trade Opportunity in the Utilities Sector?

XLU Utilities ETF Stock Chart Technical Analysis

Reviewing my recent $IBM call that I posted in October, the stock recently hit my target of $168 before pulling back due to earnings. The good news is I have found another good risk to reward ratio trade, that I will be sharing in the next paragraph!

The utility sector has pulled back 10% from its recent highs, based on my proprietary analysis, it is worth purchasing stock (not options!) in $XLU ETF, at this price. If the trade goes wrong or takes longer than expected a quarterly dividend will help a bit. 

Thursday, December 28, 2017

The Truth About Trading & Discipline

Traders often blame their losses in trading due to "lack of discipline" and mental breakdowns. The truth is this isn't the actual problem causing you to lose money trading. There are many out there willing to sell their services to help you improve your trading psychology/discipline, these range from books, seminars and even expensive weekly one on one Skype sessions. The truth is these products will never help you long term and are flat out a waste of money. Many people who sell these products are exploiting inexperienced/naive traders out there.

The real underlying issue of why traders keep losing is because they lack a clear-cut profitable edge. Where an edge is defined as a set of consistent decisions (including a trading algorithm) used to buy and sell stocks. Following a profitable system will keep you "disciplined" because it guides all your decisions for you and removes emotions.

The list below is a series steps on how I use my profitable edge/system to buy and sell stocks (important to note real edges aren't given out to the public as the fear they will no longer be profitable once publicized).

Wednesday, October 18, 2017

Is IBM Finally Making A Comeback?

IBM Stock Chart Analysis

IBM has not had the best decade, and recently it was heading to retest yearly lows as the majority of large caps were making all time highs. However, with recent earnings IBM has reacted with pure strength, making a rare +9% move.

The way the chart is setup, and the strength shown by the RSI (currently overbought), this stock is likely to climb higher in the upcoming months. The first target would be the gap fill highlighted in the chart above which closes at $168. If this trade goes bad, at least there is a very nice quarterly dividend to help you "average down".

This might be the quarter were things finally start turning around for IBM, at the very least until next earnings date.