$DORM - Refreshing to see a chart like this, to say the least
Updated
Typically, I leave the technical explanation for last when I post an idea. Mainly because there's always a different perspective of TA with the bias of someone's bullishness / bearishness on the market, but also because it'd be a waste of space to type out my own TA for each chart since....... it's the same for every chart lmao. THE most accurate charts I've posted, have all been fibonacci based whether I mention "KATTTIEEE" or the "white curve" - instead of wasting space with links to old charts, I'll go over pics of the charts that I saved (months ago) for my own use & future references. So shit doesn't get too clustered - pics & links @ bottom. From all I have saved - 
SHOP (Pic 1) is the most accurate comparison - most accurate in the sense that, among the comparisons - the breakout potential + time spent making new highs is much greater than those with only similarities.
The 2nd picture tells a much much (much) bigger story to the strategy that essentially determines the time value (& its validity) of a move after price either invalidates a price target or is just shy of it - this is the "White curve". Rather than use a 50 SMA - try a 55 low SMA. Essentially, it measures the exponential growth after a breakout by the slope of the curve (starting one candle before exp growth begins). i.e calling the top when the lows form a straight line, not when the highs "can't go any higher". (
FDS, 
BLKB <- in published ideas). Before I get to the realistic explanation, pic 3 goes out to the imperfections of TA & the reason exponential growth (or depreciation) is foreseeable by actual measurements, but tainted by the noise of reaction to unsustainable returns (like 
BTC).
I'm bearish on the dollar, right? So gold, oil, etc., I'd be long.
So the realistic explanation - There's more equities & sectors that have underperformed in the past 3 months than there are that have outperformed in the past 6. & obviously oil & gold is still somewhat of a waiting game (I'm bullish, but, you know). Equity wise - the smartest thing anyone could do is look at the risk-off defensive type stocks. Even then, the outperformance isn't 100% guaranteed. Especially in a QT environment. Since
DORM is a used retailer for auto parts - they're beneficiaries of a middle-class that can afford to spend $300 to fix their check engine light rather than spend $3,000 + a trade in for a new car (Hence the outperformance of even banks during periods of QT). I'm shooting in the dark here but from what I do know, Mexico & Canada are top exporters of auto parts TO the U.S, so I'm not even sure the China tariffs will have much of an impact (if any?). On top of that - you add on the steel & aluminum tariffs to major auto exporters (Germany, Japan, etc.,) that impact the costs of everything related to a vehicle, & finally, price in the rising rates. What's left?
A company that can increase the cost of their own automotive products without the effect of tariffs, aka, the fucking margins guy.
Pic 1 -
Pic 2 -
Pic 3 -
(Note: To save space, pic w/ Fib re-traces from 06/05, now updated w/ 55 candle count)
SHOP (Pic 1) is the most accurate comparison - most accurate in the sense that, among the comparisons - the breakout potential + time spent making new highs is much greater than those with only similarities. The 2nd picture tells a much much (much) bigger story to the strategy that essentially determines the time value (& its validity) of a move after price either invalidates a price target or is just shy of it - this is the "White curve". Rather than use a 50 SMA - try a 55 low SMA. Essentially, it measures the exponential growth after a breakout by the slope of the curve (starting one candle before exp growth begins). i.e calling the top when the lows form a straight line, not when the highs "can't go any higher". (
FDS, BLKB <- in published ideas). Before I get to the realistic explanation, pic 3 goes out to the imperfections of TA & the reason exponential growth (or depreciation) is foreseeable by actual measurements, but tainted by the noise of reaction to unsustainable returns (like BTC). I'm bearish on the dollar, right? So gold, oil, etc., I'd be long.
So the realistic explanation - There's more equities & sectors that have underperformed in the past 3 months than there are that have outperformed in the past 6. & obviously oil & gold is still somewhat of a waiting game (I'm bullish, but, you know). Equity wise - the smartest thing anyone could do is look at the risk-off defensive type stocks. Even then, the outperformance isn't 100% guaranteed. Especially in a QT environment. Since
DORM is a used retailer for auto parts - they're beneficiaries of a middle-class that can afford to spend $300 to fix their check engine light rather than spend $3,000 + a trade in for a new car (Hence the outperformance of even banks during periods of QT). I'm shooting in the dark here but from what I do know, Mexico & Canada are top exporters of auto parts TO the U.S, so I'm not even sure the China tariffs will have much of an impact (if any?). On top of that - you add on the steel & aluminum tariffs to major auto exporters (Germany, Japan, etc.,) that impact the costs of everything related to a vehicle, & finally, price in the rising rates. What's left? A company that can increase the cost of their own automotive products without the effect of tariffs, aka, the fucking margins guy.
Pic 1 -
Pic 2 -
Pic 3 -
Trade closed: target reached
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