Biggest mistakes theory in practice.The biggest mistakes and biggest reasons why traders lose keep being repeated. It is more clear when we can see it actually happen.
Here we can see the number of holders as well as the increasing money pour in into an Oil ETF while the price is going down.
When it will go up those that didn't hang themselves will break even so remind me to check robintrack.
United States Oil Fund number of Holders on Robinhood went parabolic as Oil prices plunged
robintrack.net
Nosediving right now.
Trading was halted for this fund
www.streetinsider.com
> Stop fighting fundamentals & trends because "it's cheap" or "some indicator"
> Stop averaging in losers
> Cut your losses
You can be sure that when they get lucky and get out in the green (and rapidely take minuscule profits) you'll hear from them, and when they get wiped out on huge losers you'll never hear that story.
E-retail
Burl multi-year run may be coming to an endLong track record of increasing revenue but not positioned for the economy we are heading into. Here are some reasons why:
1) No online presence. Discontinued online store last year. Speculating here but I imagine it would be hard to manage the inventory of an online store based on the wide variety of items they have which are constantly changing.
1a) Lost customers to online shopping. Downtrend on google trends ever since the economy shut down. How many people will forget about them by the time stores reopen? Also, how many people will still have money to shop?
2) Strapped for cash. Looks like they will have to raise money to pay the rents on all their brick and mortar locations.
Broke straight through multi-year support. Might retest but I doubt it will go up much more from here, especially if the economy remains closed longer. Earnings early June.
Let me know in the comments how I could be wrong on this.
WalmartStock Symbol: WMT
Out of all the blue chips, walmart looks the strongest.
Good old Wally world holding up like a champion.
Diversify and use 5% stoploss
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- Major League Trader
GUESS Key Level Broken| Bearish Retest| Volume Climax Evening Traders,
Today’s technical analysis will be on GUESS, breaking major structural support and confirming a bearish retest,
Points to consider,
- Bear Trend (consecutive lower highs)
- Structural support breached
- Confirmed S/R Flip
- RSI oversold
- Stochastics in lower regions
- Volume climax evident
GUESS has been in an established bear trend with consecutive lower highs, a new local low has been confirmed with its recent wick down.
Weekly structural support has been breached; this is a high timeframe support, broken with convincing volume with a confirmed bearish retest. Bulls were not able to break above the now resistance – confirming the S/R flip.
RSI is currently oversold; a reversion back to neutral territory is highly probable. The stochastics on the other hand is in the lower regions, can stay trading here for an extended period of time, however lots of stored momentum to the
upside.
Volume climax is evident, signalling a temporary bottom is in; however this is likely to change due to the confirmed S/R flip.
Overall, in my opinion, Guess is likely to test lower lows upon breaking key structural support. This is also combined with the greater economic situation; the retail sector is largely hit.
What are your thoughts?
Please leave a like and comment,
And remember,
“Don't blindly follow someone, follow market and try to hear what it is telling you.” ― Jaymin Shah
Target Clings to Support, With Gap Looming BelowTarget reported decent earnings this week, but not a lot of buyers showed up. Now traders may want to watch for a potential breakdown with the big-box retailer near a key price zone.
TGT gapped from $86 to $100 last August on signs that its big digital push had paid off. It followed that with another strong quarterly report on November 20.
Since then, however, things haven't been so hot. TGT peaked around $130 a week before Christmas. It then announced in mid-January that the key holiday-shopping season missed estimates. The shares gapped down, bounced feebly and then continued lower to a potentially important level around $105.
This zone could be crucial because it's near the 200-day simple moving average (SMA) and the price area shortly after the August gap.
The recent price action is also potentially bearish because TGT tried to rally after earnings three days ago, but hit resistance around the old $111 support area from January 31.
Relative strength has been poor over the course of 2020, with TGT trending lower even as the S&P 500 hit new highs in January and February. It also faces potential risk from the spread of coronavirus.
Still, there isn't confirmation yet. Traders shopping for downside in TGT may want to wait for a close below the 200-day SMA.
Stonks: Where to buyRemember when I said a few months 80% retail traders were short DJI & SPX? Well they kept hodling to their losers, and probably adding to them.
Well... this week shorts have dropped by 30 to 40% and now there are more longs. They held onto losers forever, and then exited the very WEEK the price went down!
Breakeven bagholders. The typical really dumb bad speculating that every article & book on trading talks about, and the majority does "oh noes I don't want to take a loss I rather bagHODL a giant loser for 6 months and risk losing everything for a shot at breaking even", and when it goes their way "quick quick I have to lock profit because this is what you do, when it goes your way, you take profit" (??????).
Going to keep going down as more retail turn long?
If the price would fall as low as described in the following screenshots, I would buy there on the SnP & DJI:
Not if it trends down... If it capitulates very rapidely there.
If we got there by early april as SARS V2 The return of the CORONAVIRUS disappears, now that would be perfect.
Can't tell for other indices, gets too complicated for me.
I'd use a stop of about just 5%, and if it gets hit I would look for another chance to buy.
Goes up from there well I wait for the trend and hold for a while.
I hope we get to see some real panic, some FEAR.
I want to see sweat & fear out there :) Would be perfect.
If CNBC calls for a mega bear market then you know it's time to buy :)
Oh btw, an ABC very extended C would be perfect:
Point of the story is these slow hesitant "disbelief" trends are very weak and drop way faster than it took them to go up.
Always have to be the first to exit. I don't like fighting the drop until 100% retrace.
And the opposite is:
Go up fast go down slow, go up slow go down fast. Always the same story (well not always not what I mean).
The bounce will probably be fast at first, then a disbelief slow trend up.
Like this:
Will Dollar Tree pickup volume to break Fibo resistances?Dollar Tree has been in a downward spiral for quite some time... Huge (down) gap after Earnings... Coronavirus might hurt its Supply-chain short-term... but if volume picks up and it breaks the Fibo line, it might rebound and try to close the gap left behind. What do you think?
Violent IntrigueI was short for a while and missed the second and more recent drop... but I actually like this retail giant at this price/valuation/cap ($36mm... that is free). I like that it dropped back to its stagnant price of 2019, but did not break lower. Under a dollar will start to scare me... I see no reason not to use this stock as hail mary money and risk what you are willing to lose. I am hopeful for the return of the generic trend up, which would be 200-300% from the current price.
**no position, intentions to buy.
The rise of the braindead investorMarkets always change and strategies have to be adapted. Just like with games, the meta changes all the time. An all round good trader should be able to adapt and succeed in all metas, or almost all, as long as it doesn't get too stupid and too random.
Ignorant cognitive bias shoe shine boys have taken over. Just like in the 1920s. But worse.
I expect markets to keep going parabolic for a while, and in particular those trollish "investments" like Tesla and other scams surfing the "end of the world clomote shounje" wave.
Bushfire crisis definitely not caused by arsonists...
When earth was pangea and average temperature was higher by 20°K/C (36F) (so even mor eon pangea) earth was in a constant buring state right? How did all thois survive? The power of imagination?
We also can notice that alarmists, The Armageddonists as JPM calls them, get alot of attention. Nouriel Roubini got a Nobel Prize for "predicting 2008 crisis".
He is very bearish on the stock market since 2011 and on Bitcoin since 2011 too.
JPMorgan Chase 2 months ago published a nice article about The Armageddonists am.jpmorgan.com
Those retail very low level low skill investors are very emotional and at the same time ignore reality because "that's being emotional".
So we can expect all the obvious things to be important and to consider (sudden price movements that have nothing to do with true value, end of the world predictions being given alot of attention, rational thoughts being ignored, irrational markets, mini bubbles everywhere, etc, the usual that happens regularly since 1500).
I think TA will work more often also, since this is what retail learns, and makes buying decisions on some arbitrary made up indicators (or extensions) rather than on the value of a company.
The cycle is I'd say at around 90% by now.
First all the bears get killed, then one last parabolic move up with every one euphoric. Another 4 years of bull and another 4 years of Trump I'm guessing.
With the internet, comission free brokers, complete noobs "invest". They are gullible and fall for complete scams so this has to be taken into account now.
Not going to fight it for the next few years. I still have my dow jones target around 33k.
There are ways to profit from all this of course, this is for me to know and you to find out :D
They do everything opposite...
I will mostly continue to focus on Fx & hard commodities anyway. I like my clean & repetitive trades.
Stocks and indices will probably get alot of random (or maybe they are not random?) large spikes...
Got to give stupid news more weight now.
Gone are the good old days when you could ignore lunatics or just laugh at the kid that eats grass and vomite at school.
Now the more unimportant and ridiculous one is, the more markets will react to that person or group.
So we have to sit there and pretend we take seriously complete mongoloids that are convinced 2+2 is 5, a 25% efficient 50 times more dense energy source can be replaced by "just make electricity more efficient" (50 times 0.25?) or the earth is a sphere because "science" no matter the proof you show to them.
I really like the dead stock bounce strategy, Marc from the ukspreadbetting channel has posted some of his trade on youtube recently, he is making money from suckers (oh here I gave you a way to abuse this current situation), here is an example:
The secret is to be rigorous. The first part is you have to get in early after the new high is made, and if you missed out you stay away. Then price keeps going on as suckers notice it, read about it, or suckers that were afraid of buying start having regrets and finally surrender and buy. So you are front running the noobs.
The second part is once the price starts dropping you get out! Noobs will hold on by fear of missing out (and a few times they will "be right" and have survivor bias and think they wer"e geniusses lmao) but experienced skilled speculators just get out no question asked. It's so simple... yet most can't do it. If you manage to do this, naturally or via training, here is your lucrative strategy. Still it's grindy to go and scan all these stocks and look for the right ones read about them etc. Time actually has to be spent analysing this.
Apart from this DSB strat I don't really like much. I would just look for buys until the dow gets to around 33k and/or Trump presidency is over. Then maybe consider shorting the entire stock market especially if there is a catalyst at the same time.
Just going to stick to FX&Futures but they have their periods, and during certain times it gets so boring, and I spent so much time looking for new strats for those times but haven't found much, it might be interesting to look at stocks actually. Or just go on vacation.
CVS is back!After a press release indicating that CVS Health plans to open 600 new Health Hub stores this year, CVS stock has once again been climbing. I suspect the breakout will continue once CVS pushes through some resistance. I'm looking for maybe $78 per share from this run. CVS's forward P/E of about 10.5 is very attractive for a stock with large growth prospects in the next 2 years. We've got a healthcare cost bubble in the USA, and CVS may be on the leading edge of popping that bubble with its low-cost clinic model. It also boasts a roughly 2.5% dividend.