We retired our "Five Bull Market Barometers" in 2020 to make room for a new weekly post that's focused on the three most important charts for the week ahead.
This is that post, so let's jump into this week's edition.
As many of you know, something we've been working on internally is using various bottom-up tools and scans to complement our top-down approach. It's really been working for us!
One way we're doing this is by identifying the strongest growth stocks as they climb the market-cap ladder from small- to mid- to large- and, ultimately, to mega-cap status (over $200B).
Once they graduate from small-cap to mid-cap status (over $2B), they come on our radar. Likewise, when they surpass the roughly $30B mark, they roll off our list.
But the scan doesn't just end there.
We only want to look at the strongest growth industries in the market, as that is typically where these potential 50-baggers come from.
We have different time horizons, objectives, goals, and appetites for risk.
It's for this reason that the endeavor of trading is often a lonely one; you're forced into fine-tuning what works best for your needs.
What works for me isn't going to work for you.
This is self evidently true.
It seems to me that one of the overlooked elements of this discussion is the variability of human personality.
This is something I've been pondering as of late, so I thought I'd lay bare my potential fallacious thoughts to see if we can strive closer to some answers.
The January AAII asset allocation survey shows household equity exposure rising for the third month in a row and climbing to its highest level since May.
As promised during yesterday's The FLOW show, I'm following up on a possible trade idea we discussed.
However, after Strazza and I put our heads together with the rest of the Analyst team this morning, we're going to attack an opportunity in Schlumberger $SLB from a different angle -- one that can be rewarding regardless of which direction the stock takes.
