I must say Awesome wisdom, this lion is true to its name.
Link:
Insti quality+Big earnings+High liquid stock
Stair steps whole way up
Rule: closing basis
Tight closes
Goal: get into the 1st breakout
2/
Based on vols can sneak in early
Bill waited for end of the week to take decision.
23EMA & 65 EMA r significant.
21ema super extended abv 50dma then sell some.
3/
High RS & respect for moving avg.
Exit completely: 65EMA
Pocket pivot:
Solid clue of subtle accumulation
To buy before breakout
Buy 20%
Pocket pivot vols signature
Vol> down vols for last 10 days
Vol currently > HHV(Vols,10) sell vols
4/
Also, 5 day pocket pivot.
2-3*multiple of pocket pivot 5 is more effective.
S.L: 4Day EMA
Cris Katcher: Most successful trades he hit SL 6-7 times
Once up 20%, not oversize
Can b done in big outside day
5/
Tightening in price
If market in correction
Entire group in accumulation
Averages tightening up
Can add more here.
Take some 50% off >20% move
Look for stair stepping pattern, respécting major MA
Earnings+liquidity+chart: composition
6/
U need to name a base.
C&H & double bottom as long as u spot accumulation & distribution along the way.
Group+ earnings
30% frm highs vs 15%
Sneaking in early: keep a tight SL
u get more proper entry area
Oil, building, materials etc stay away.
7/ Most stocks break 50dma and come down to 65EMA
RULE: at mad highs, willing to give that much that it doesn't affect u.
Darvas: building little boxes along the way.
Straight up from the bottom is bad.
Jesse Livermore round numbers rule.
8/
Accumulation+tight area+low vols+MA punching up+big vols breakout: can create position
High RS+ Group setting up
Wedge+breakout: not good
Sud b proper handle
That's y shakeout happens
Bill: imperfection, so shakeout
Richi: important to look at leaders, they repeat all time
9/
Huge vols + obey MA
Stories help to stick & build conviction.
Love IPO U turn, or bases
Accumulation+ nice tight flag.
RS: 90+
Everything on closing basis
Sell on stalling move
B proactive in selling after big run and stall with big vols
10/
There's not an edge buying stock at 50dma and not holding it.
Nice tight action + 200dma not so far below.
If ranges r wider u got to b wrong more
Richi: funds buying.
11/ 6 week base, no such thing.
Just a short consolidation.
Q: are we seeing accumulation ?
Just ask this question in consolidation.
So many stocks flows up in low vols and then later vols come up.
12/ 17-21-23Ema combo, stock working up for u and u just watch it working.
U can take any trade on this planet if u have an edge + managing risk. It doesn't matter.
13/
Mike webster no 1 rule:
Cut ur loses-cut ur loses- cut ur loses !!! Quickly.
Rule 2: keeping ur money, not letting it get away from u and live to fight another day.
If u study it, understand it and follow it. It just works.
14/
Its similar to counting cards, sometimes the deck is not so hot. Same for stock.
Find a methodology that's tried and true that works.
Create rules and make ur own.
Look at ur mistakes.
15/ Rules sud fit ur personality.
Learn one thing well & that's it.
Don't jump to change ur methodology.
Sticking to one thing and doing it well.
Spend good 2-3 yrs.
Loose ur ego & get used to cutting loses.
***THE END***
one must go through the whole interview to learn.
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A lot of distribution days piled up in a short time recently. Pattern: Inverted Flag. A close below 17613 with above avg vols wud confirm a downtrend and the start of panic selling. Rather one can say it's at a major support zone.
NSESMLCAP: At a major junction. 2 weeks to decide
Important key: Major winners of the Covid rally are either in STAGE 3 or entered STAGE 4. Major tops are seen in many past winners, more tops coming soon. The next 2 weeks are very crucial. AUTO & INFRA to stand out in strength.
NIFTYAUTO: Some scope here. Many auto stocks are setup strong with major earnings this week.
Not listening to the market is a flaw
Listening to people, watching TV: Bad habits
Stage Analysis: Break the market into 4 stages. 1. STAGE 1 2. STAGE 2 3. STAGE 3 4. STAGE 4
2/n
Sometimes the simplest system is the best system.
Ideal buy point is when stock comes out of stage 1 & enters stage 2
Stage analysis works completely against the normal market participants
Psychology=Inverse(What needs to b done in the market)
Stages are determined wrto KMA
3/n
B.O. sud b accompanied wit vols
Establish position from stage 1 B.O and retest.
Look for stocks with no upward resistances
Bigger the stage 1 base the better
The sector is important: can dramatically improve returns
Check for 2 years of resistance.
TSLA, 2019(6 yrs base).
FAZE3: Real Round Cup & Base formation at the peak.
Outlook: AR2021
By Rule of 72:
At 18%, The Income wud double in 4 years.
The Income growth seems conservative.
Fundoos:
~Highest ever Quarterly revenues since inception.
~Topline & Bottomline Acceleration
~Seems to be a breakout in Earnings in the last 3 years.
~Being a small player seems to take the Margins hit.
Two things I have seen yesterday but not quantified yet.
1. Most of the NIFTY50 or biggies r below 50dma and looking to kiss 200dma.
But, the Index is hanging above 50dma for some strange reasons.
2.
Internally the stocks falling below 50dma in the whole universe has widened
There wud b tons of breakouts reversals to be seen.
Some choosy sectors/names would run.
Most good to great results r discounted specially in IT & PHARMA.Textiles stocks r giving fab results & the moves r discounting the earnings breakout above multi-year average.
Lastly, I am seeing vintage stocks or stocks with long bases which I have been tracking for long Breaking out now.
Case: TEJASNET
It has been in key list for way too long. Last 4-5 days r continuous circuits and cleared the trigger point convincingly.