12-1-20 Recap of $YALA

12-1-20 Recap of $YALA

Reversal Play

$YALA – 12-1-20

Found $YALA on my morning scanners and kept an eye on it for a potential reversal play. Worked out this time, and looking back at it, I played it perfectly. That rarely happens. Here is a quick overview of what I was looking for this morning and why it worked. 

Disclaimer: This is not investing advice. Due your own research and perfect your own strategies before entering any trades. This video is for educational purposes only. 

Chart Analysis: $PTON – Pitchfork Breakout

Chart Analysis: $PTON – Pitchfork Breakout

Watchlist Stocks

$PTON – 11/30/20

This stock had a great run up as one of the “stay at home” plays. Has pulled back recently but looks ready to make another run up. RSI divergence and breakout from pitchfork. Pitchforks are new for me and slightly subjective (as are many indicators) but let’s see if it works. I have my money tied up so I can’t enter, but this could be a good entry. Will track just to see if it works.

Potential Entry: $115
Initial Price Target: $130
Stop: $107

$PTON - RSI Diverging From Trend by CCInvesting on TradingView.com
Chart Analysis: $PTON – Pitchfork Breakout

Chart Analysis: $BA – Follow Up

Watchlist Stocks

$BA – 11/29/20

Following up on the post below from 12 days ago. The 50 day has now crossed the 200 day moving average. That will be a buy signal for many. Other things of note, bull pennant forming, and inside day candle on Friday. All could be pointing to a breakout here. My money is tied up elsewhere right now, and looking at other stocks. However, I may consider an add here in the near future. We’ll keep an eye on it. 

Potential Entry: $TBD
Price Target: $TBD

$BA - 50ma has crossed 200ma by CCInvesting on TradingView.com

Watchlist Stocks

$BA – 11/17/20

$BA has been strong lately on news that its 737 MAX will be taking to the skies again soon. Of course, with Covid ever looming, this stock still has some head wind. That being said, it did close above it’s 200MA again, and the 50MA isn’t far behind. If the 50 crosses the 200, I may be interested. Especially as the stock is getting close to that 232 pivot point. Just watching for now. 

Potential Entry: $TBD
Price Target: $TBD

$BA - Watchlist - Wait For 50MA by CCInvesting on TradingView.com

Chart Analysis: $PTON – Pitchfork Breakout

Chart Analysis: $AMD Weekly Chart

Watchlist Stocks

$AMD – 11/18/20

I have had a position in $AMD for a little while now. I have even bought, sold, and reopened a position in the past couple of months. My current cost basis (CB) is in the low $79 range. I am adding more today.

Potential Entry: When weekly breaks out of current Pennant. TBD, but around $85. I would feel okay getting in now though.
Price Target: $95-$100 in coming weeks.

$AMD - Consolidating on the weekly chart by CCInvesting on TradingView.com

Investing Q&A of the Day: Bull vs. Bears?

Investing Q&A of the Day: Bull vs. Bears?

The Beginner Trader

Bulls vs Bears

Even if you’ve never invested a penny in your life, you have likely heard the term “bullish” being used in regards to not only stocks, but any number of other subjects. For example, you may be bullish about your favorite team’s chances of winning a championship. Meaning, you think the chances are good. Being “bearish” mean the exact opposite. 

If you’ve never heard the term and are unclear about how it applies to the stock market, continue reading for a quick overview. 

Bull Market vs. Bear Market

One of the factors to take into consideration when looking for a trade is determine whether we are currently in a bull or bear market. Simply put, is the stock market going up, or going down. If the stock market is generally trending up for an extended period of time, we may be in a bull market. The exact opposite if true of a bear market.

This could be taken into account as a daily status, “are stocks generally  up, or down today?” to help you decide how much risk is involved in a particular trade. It’s true definition however would be if the stock market is trading above or below its 200 day moving average. 

You can look this up easily using your favorite charting software. If you don’t have charting software you like to use or have not used any before, you can use the free versions at www.StockCharts.com or www.Tradingview.com. 

Chart Bear Market

Bear Market Signal

In these images I will use a very recent, real world example. When Covid 19 began to wreak havoc on the economy we saw the stock market take a dive. Near the end of February 2020, the S&P 500 index closed below it’s 200 day moving average, the red line. This is a confirmation that the stock market is in decline. Further confirmed when the blue line (50 day moving average) also crossed below the 200ma. That is know as a “death cross” and people start to panic, and selling intensifies. You can see that play out in the larger red candle in mid-March. 

You will also hear folks on CNBC and twitter say that a bear market has begun when stocks fall 20% from recent highs. That can also be a signal to proceed with caution.

 

Chart - Bull Market

Bull Market Signal

Two months after the signal of the start of the bear market, we got the opposite signal. The first candle to reclaim the 200MA happened on April 18, 2020. It did slip slightly below it on the next day, but stocks continued to rise after that. The 50MA then crossed the 200MA in June, and stocks have generally continued in an uptrend since. 

Why does it matter to us?

If we are in a bear market that doesn’t mean we can’t buy stocks. In fact, just the opposite may be true. It may be a good time to find value stocks, or in the case of Covid, look for stocks that are likely to have a turn around once we find a vaccine. It does mean however, that we have to be cautious. Maybe be more patient, wait for opportunities, and try to scale in to a position rather than dump all your money into a stock at once. Bear markets can also be great for people that are comfortable with shorting stocks. Shorting stocks isn’t for everyone, or the faint of heart as they can be much more risky than just going long on a stock. That is a lesson for another day though. 

A saying you will hear a lot when it comes to investing will be “Bulls make money. Bears make money. Pigs get slaughtered.” Don’t be a pig. In other words, you can make money no matter which direction the stock market is going, but only if you know what you’re doing. Understanding the direction of the market is often the first step in entering a trade, but not the only one. 

Have anything to add to the discussion? Follow me on Twitter, @cchapeton, or find my Facebook page.

How To Start Investing: Scanning For Stocks

How To Start Investing: Scanning For Stocks

The Beginner Trader

How to find stocks

Regardless of the trading or investing strategy you decide to follow, both will need one key, and that is finding the stocks that meet your criteria. To find stocks you are looking for, you will need to use a stock scanner, or maybe more than one scanner to narrow your focus. 

Why do I need a scanner?

There are roughly 2800 companies listes on the New York Stock Exchange (NYSE). Plus the 30 Dow Jones companies, and the hundreds of companies listed on the American Stock Exchange (AMEX) – It would be impossible for you to sift through all those companies in any sort of timely manner to find good trading opportunities. 

Every trading stategy will have its own set of criteria to help you define what it is you’re looking for. For example, you may be looking for stocks that have gapped up, or gapped down. You may be looking for stocks that have just closed above their 200ma, or whose 50ma just crossed the 200ma in one direction or another. You may be looking for value stocks, and you need to find out which are trading below book value. There are almost countless ways you can filter stocks to match your criteria, you just need a filter. That’s where scanners come in. 

Below are some free scanners that you can use anytime. Most have paid version which give you access to additional filters. In some cases you may be able to combine the filters of one scanner with another to fill in the gaps the other is missing (or charging for). I use the free versions of these services as I also have access to my brokerages own scanning tools, and charts which offer just as many, if not more features. I just like the ease of these websites, so I also use them for my research.

Screen Shot Of Barchart.com

BarChart.com

Barchart.com offers a free screening tool that I use mostly for quick pre-market scans. However, it is much more than just a scanner.  You can use it for free with no account. You can use it free, with an account, which gives you access to watchlists and saving screens among other things. Or you can pay for their premiere version which give you additional filters, and features. 

  1. Stock Market News
  2. Market Performance (overall and by sector)
  3. Screener
  4. Watchlists
  5. Charting Software
  6. ETF, Options, Futures, and Currencies
  7. As of the writing of this post ($29.99/mo) – Discounts if you pay yearly. 
Screenshot of Finviz.com

Finviz.com

Finviz.com offers a lot of the same features as Barchart.com. I do like their screener better and feel it’s easier to navigate and use. Like barchart.com you can use the website for free, without an account. You can create an account to save your screens. Although you can’t create charts without upgrading to the paid version. I like to use Finviz to scan for swing trade opportunities, rocket stocks, and dividend stocks. A cool feature that Finviz has that other websites do not is their heat map (see pic above), which offers a cool visual way to take in how the market is doing on that particular day, broken up by sector.

  1. Stock Market News
  2. Market Performance (overall and by sector)
  3. Screener
  4. Watchlists
  5. Charting Software (paid version)
  6. Futures, FOREX, Crypto
  7. As of the writing of this post ($24.96/mo) – why not $24.95? I don’t know. 

Do you have a favorite scanner?

Do you have a favorite screening tool that I haven’t mentioned? Write in the comment section below and I’ll check it out. It could be a stand alone website, or even your own brokerages scanners, if you have one you like.