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5 Year Anniversary of a Long Bull Market

This five-year anniversary chart is by Chris Kimble of Kimble Charting Solutions.

(Click on the image below for a larger graph.)

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Follow Chris on Twitter @KimbleCharting.

Market Madness — The Start Of Something Bigger Or Just Another Buying Opportunity?

It’s mid-March and that means March Madness or shall we say…Market Madness?
 
While the powers that be will be “selecting” today who gets to go the big dance, we too are selecting how we will continue to profit from today’s market.
 

This is the kind of market we LOVE.  Why?

 
WHAT’S NOT TO LIKE!
 
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We buy stocks at low-risk, alternative entry points.  That means we buy stocks that have pulled back to support in tandem with the indexes.
 
In addition to seeing the indexes pullback towards multiple support zones, we are seeing a ton of names setting up low-risk, alternative buy points. 
 
When the stock market sells off to the degree it did last week, 2 scenarios are commonly debated:
 
1. Is this the start of something bigger with more downside to come?
2. Is this another opportunity to step up and buy leading stocks at discounts?
 
#2 has been the winner each and every time the market has pulled back like this for the past 5 years.  At some point that trend will change, but for now that’s been the ticket.
 
How do we know what will eventually happen here?  We can look to the charts of leading stocks for clues.  After all, it’s a market of stocks, not a stock market.
 
Let’s take TSLA for example:
 
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When looking at the charts of leading stocks such as TSLA and others on the watch list for our paying members, we see stocks that are acting in positive fashion.  In fact some leaders actually hit new highs last week and many others are pulling back gently.
 
That tells us that most likely this latest pullback in the indexes could eventually be another opportunity to get paid from buying leading stocks vs. packing up and running for the hills.

To learn more, sign up for our free newsletter.

Week In Review: March 8, 2014

Friday sure was exciting around here.  Around mid-day we issued a trade alert to our paying members to buy a leading stock that was triggering a long side trade after pulling back to support.
 
3 hours later, our members are sitting on a gain of 7.4%!!!
 
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Friday sure was exciting around here.  Around mid-day we issued a trade alert to our paying members to buy a leading stock that was triggering a long side trade after pulling back to support.
 
3 hours later, our members are sitting on a gain of 7.4%!!!
 
 
 
 
 
Membership in our newsletter is just $29.99/month.  Friday’s trade in PANW alone paid for 2 years of our service!
 
If someone came up to me and said for your $30, I’ll give you back over $700, I’d say talk about a slam dunk!
 
 
DON’T LET ANOTHER WEEK GO BY SITTING ON THE SIDELINES WHILE OUR MEMBERS HAVE ALL THE FUN! 
 
As far as the market goes, last week was one where we started off with a Russian-induced sell-off followed 24-hours later by a powerful rally to take us to new highs which is where we closed Friday on the S&P 500.
 
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As far as leading stocks go — most acted well. 
 
One other stock on our watch list triggered a long side trade in which our paying members were sent a Trade Trigger alert to trade this high-performing leading stock in tandem with us! 
 
This high-profile leading stock remains in buy range, but it could take off as early as Monday morning!
 
Other leading stocks continued to pullback in an orderly manner and are close to triggering long side trades.
 
TOMORROW our paying members will receive a new watch list FULL of new set-ups like PANW shown above — leading stocks that have pulled back in an orderly manner to areas of support and have been carefully selected by our team of experts.
 
Join today to get your list in time to be ready for profits come Monday morning. 
 
DATA is a great example:
 
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Here’s a leading stock in a confirmed uptrend that has pulled back nicely to areas of support.  A break above the pink line triggers a long side trade.
 
DON’T MISS THIS POTENTIALLY EXPLOSIVE TRADE!
 
Become a paying member today and start earning consistent profits in the market from leading stocks like those above!
 
For just $29.99/month it’s a steal!
 
“You are teaching me beyond my wildest dreams.  IBD’s selling into 
weakness and buying into strength has lost me a lot of money over the 
years.  Thank you again,” John — Gilbert, AZ
  
 
DON’T MISS ANY MORE PROFITS!!!
 
LET’S START MAKING MONEY TOGETHER!
  
If you want to see your portfolio EXPLODE, then you are in the right place!
 
We have a simple, low-stress strategy that has achieved a portfolio return of 99% since 2008 – that’s more than double of the S&P 500 during the same time period!
 
Our unique method of buying leading stocks on pullbacks to support vs. chasing them as they make new highs gives our subscribers an extra edge to buy and own leading stocks and quickly profit as they make new highs! 
 
To help you beat the market by focusing on buying leading stocks at alternative, low-risk entry points, we use these 3 steps in this strategy:
 
1. We find quality trade set-ups
 
2. We educate you on those set-ups and how to trade them.
 
3. We send you email alerts when a stock triggers a trade and another email when we are locking in gains.
 
That’s it — all for just $29.99/month to do nothing but trade in tandem with us and enjoy consistent profits!
 
Plus, we’ll take you step-by-step through the trading process, so you know exactly why we expect the trade to deliver.
 
Here’s what a couple of our members have to say…
 
“I am a new member. Just want to say thank you for the stock recommendations as well as the watch list. I have bought 2 picks thus far and I am currently up nicely on both picks.  This is a fantastic newsletter. The notifications are timely every day.  Again, thank you and wish everyone a Merry Christmas and a Happy New Year.  I already got a nice gift for myself by subscribing to this newsletter,” Fred — Kentucky 
 
“You have done so much good work for us all these years. I have learned a lot from you. You are the best and deserve the best. Thank you and good luck all ways,” John — California   
 
We know you’ll love us as much as they and hundreds of other members do.
 
 
“I’ve got to hand it to you guys. I’ve been a member for a while now and it’s finally sinking in. The repetition is invaluable since there are so many aspects to consider simultaneously. Not only am I trading some with you, but I am branching out identifying my own trades and that’s working too. I can’t believe how many times when I’m looking at an issue I am interested in, I can hear a tiny voice saying, “Trade what you see…etc” . There’s a lot of meaning in that short phrase.
 
THESE ARE NOT BUY RECOMMENDATIONS! Comments contained in the body of this report are technical opinions only. The material herein has been obtained from sources believed to be reliable and accurate, however, its accuracy and completeness cannot be guaranteed. All About Trends reserves the right to refuse service to anyone at anytime for any reason. Allabouttrends.net is not an investment advisor, hence it does not endorse or recommend any securities or other investments. Any recommendation contained in this report may not be suitable for all investors and it is not to be deemed an offer or solicitation on our part with respect to the purchase or sale of any securities. All trademarks, service marks and trade names appearing in this report are the property of their respective owners, and are likewise used for identification purposes only. The member/subscriber agrees that he/she alone bears complete responsibility for his/her own investment/trading decisions. Allabouttrends.net shall not be liable to anyone for any loss, injury or damage resulting from the use of any information. Trade at you’re own risk, this information is strictly for educational and informational purposes only. Allabouttrends.net assumes NO responsibility whatsoever for any losses experienced by anyone who uses its educational materials to make financial decisions. All charts courtesy of stockcharts.com.

Finally, we have a public list at www.stockcharts.com – you can help us out by voting for it each day. At the bottom of our list is a place to vote for us. Voting for us each day helps our list get closer to the top which means more visibility and more subscribers and more opportunity for us to help others like you be successful.

 

Be Careful Buying Breakouts In An Extended Market

Take a look at SN here for a moment. 

 

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In our newsletters, we often warn about buying fresh breakouts with markets at resistance vs. support.  Secondly, see the vertical ramp up off lows?  Because this issue has really spent no time digesting that move up via sideways through time or down through price when you get bad news that comes out of the blue over which you have no control over anyway you get what you got yesterday.
 
In addition to that? We talk DAILY around here about TRADE SIZE RISK MANAGEMENT!  It’s the one most important thing we stress around here (NOT BITING OFF MORE THAN YOU CAN CHEW) We stress employing no more that 5-7% of one’s portfolio into anyone position.
 
Recently we heard someone talking about putting 20% of ones portfolio into this name. First off that’s JUST NUTS when it comes to managing a portfolio from a risk management perspective.  Sure it’s all fine and dandy on the way up for the Greedy Gus’ of the world as long as they are willing to pay the price (Most Gus’ say they are but when this happens are they really?) when an event takes place over which one has no control over. But what about those of you who are not in your 30′s and are at, near or in retirement?  Aren’t you more interested in managing risk than shooting for the hills? 
 
 

Here Is The Bottom Line

Trade size risk management exists with us for a reason and now you know why. A 20% position on a $100,000 portfolio is $20,000 into one stock. That stock fell 8% for a $1,600 loss.  A 5% position on the other hand? Was a $5,000 position and the loss amounted to $400.  When faced with an event over which you had no control over given the circumstances with SN (assuming you were long on the breakout into a new high) if you have to take a loss which would you prefer? A $1600 loss? or $400 dollar loss.
 
Like we also said above, we DO NOT buy breakouts with indexes at resistance AFTER a vertical launch higher. That alone kept you out of this stock, assuming you employ our style and methodology that is.  
 

Lastly, if we don’t buy breakouts when markets are at resistance AFTER they made a vertical run where then would we have wanted to buy SN?  Simple, by using our “Coming Up The Right Side Of The Cup” crossover trigger that’s where.  You can also see the merits of that above as notice where the stock sold off to? Right about where our trigger entry would have been had you used our “Coming Up The Right Side Of Cup” strategy that’s where and here you are none the worse for wear vs. those who chased the stock as it broke out into a new high. 

To learn more, sign up for our free newsletter.

 

All About Trends Week In Review: Pullback Off Lows

Last weekend we said:

“For now, buying weakness in leading stocks that have pulled back in an orderly manner to support and selling strength has been the trade.”
 
And that trend continued last week.  Those that bought leading stocks on pullbacks to support in tandem with the pullback in the indexes were handsomely rewarded again last week.
 
For us, in just two weeks in February, members that trade in tandem with us have total gains of over $3,500 from trades we’ve featured!
 
And we did this while never being more than 40% invested.  You see, to earn significant gains in the market, you shouldn’t have to be fully invested or on margin and carry the stress that comes with a high level of market exposure.  All it takes is knowing the current trends and how and what to trade along with trade size risk management.
 
Just like we bought stocks at support when the indexes dipped to support, we are now shorting stocks at resistance in tandem with the leading index at resistance. 
 
Why?
 
As you can see the NASDAQ comp. which is the leading index as usual has retested its highs. 
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In addition, many leading stocks that saw significant selling when the indexes dipped two weeks ago have only rallied up to areas of resistance as shown below:
 
LOPE 
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MDSO
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In down trending issues there comes a time where a stock or index rolls over and stages a snap back rally after doing so. That snap-back rally is what we call a Pullback Off Lows short sell set up or POL for short.  A lot of times when in a snap back rally issues will come back to an area that once was support that now because support has broken tends to become new resistance. 
 
Many leading stocks are sporting the Pullback Off Lows pattern and we have initiated short-sell positions in six stocks.  
 
Should the Nasdaq pullback from its highs to digest the significant short-term gain, these issues will likely deliver strong short-term profits for us and our members.  
 

 

“You are teaching me beyond my wildest dreams.  IBD’s selling into weakness and buying into strength has lost me a lot of money over the  years.  Thank you again,” John — Gilbert, AZ

You are teaching me beyond my wildest dreams. IBD’s selling into weakness and buying into strength has lost me a lot of money over the years. Thank you again.

I added 10K of PXD at the 200 day and that portion netted 9%.

This rough patch was really eye opening. I said, ‘what the heck, they got me more than 50% invested when IBD went into a correction? We’re cooked’ Even without the big 25% gain on GLUU, I am up YTD.

Good job!
John T

Thanks John, we appreciate it. There is a lot in this email folks. The first thing is that of what we’ve been saying for months about buying strength (Think Greedy Gus out of fear of missing it AFTER it ran like 10 points to the breakout zone). We’ve said time and time again NOT to do it.  See QIHU when it broke out into a new high recently? It was instantly sold off. 
 
Then there is the mention time and again about buying stocks that tag the 200 day. One of them was PXD that John (a do it yourselfer with our information at times) decided he was going to buy down there AT SUPPORT I might add.  These are things I talk about every day.
 
Lastly there was the famous “Market In Correction” statement that floated around out there around the time we were tagging support.  We talk time and again around here about support zones and the day they went into that mode we were sitting at a support and Fibonacci retracement level! 
 
But had you not been a subscriber nor learned what we pound on the table about daily you never would have seen support like we all did here, even if you didn’t spot it on your own using the tools we talk about due to being too busy elsewhere? We did for you, that’s part of what you pay us for, to point these things out for you on the go. 
 
This is why we use those tools and so should you!  To keep you from making an emotional decision (Nervous Nellie those days) based solely upon what someone says vs. what the boss (The Market) is saying. 
That alone is a big difference — sometimes all the difference.  We bought a fair amount of stock those days “In The Face Of Market Fear” on the surface but under the surface we were seeing support and a lot of names setting up so what did we do?
We did what we said we were going to do and that was we Traded What We Saw, Not Think, HEAR or FEAR!

Market Weakness is Nothing But Another Buying Opportunity

Once again the recent weakness in the indexes appears to have set up another great buying opportunity.
Wednesday’s “in the valley of market death” we talked in our newsletter about POSITIVE DIVERGENCE showing up in many individual names vs. the indexes.  
That’s where our phase of:
“Let Your Stocks Tell You What To Do By The Action They Exhibit” came into play.
In the All About Trends newsletter Wednesday, we said:
“Back to the scene of the crime?  That’s about what it’s looking like here.  Sometimes the markets come back to TEST a support or resistance level to see what’s made of.  As we post that’s about what it looks like is happening.  Of course the FED may have something to say about it, but for right now we are good with what we see.  Even a lot of the weekend’s screamers are sitting decent after popping off the face of fear lows.  Many are at a higher level vs. the retest of lows on the indexes — that’s positive divergence folks.”
 Market Weakness
Take a look at the chart above.  All we see is a market that came down to support, tagged support and for now is on its way back up.  This is the exact same thing that happened multiple times last year.
All one needs to do is look at the GREEN UPTREND CHANNEL LINES to see the overall uptrend channel is intact.  This IS the power of using trend channels to guide you.  Everyday we have these channels on the charts to guide us and now you know why.
Let’s take a look at a few leading stocks featured this week in our newsletter:
 Market Weakness
Just like the indexes — it’s in an overall uptrend that simply pulled back to trend channel support before moving back higher!
Market Weakness
Nothing but straight up after testing multiple support zones!
MarketWeakness
An orderly pullback towards support and then blasting higher out of the consolidation pattern today!
MarketWeakness
Pulled back to support ahead of earnings and POW!  But…you had to be willing to trade this or hold this ahead of earnings.
So far this week, we issued trade alerts on 11 leading stocks and are enjoying healthy profits in EACH of them!
The trend remains the same:
Pullbacks in the indexes remain the best time to buy leading stocks at low-risk, alternative entry points!
_____________________________________

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