It's "Fed Day." So I'm not interested in putting on any trades that might be material affected by any post-fed reaction. But I did find one that is trading in it's own universe, divorced from whatever may or may not come out of Washington.
This is a trade that will be hard for many people. Not hard to execute, just hard to comprehend the why?
Some people will look at the chart and be afraid of a pullback.
Some people will see that it's a $4 stock and say: "no thanks."
OK, the title of this note is a little tongue-in-cheek.
But let me explain.
I’m a rules based trader. I’m nothing without my rules. Without rules, I’m just a trader pissing in the wind, driven in multiple directions by my volatility and ever-changing emotional reactions to my intraday PnL.
That’s no way to live.
Once I committed to being intentional about every trade I put on, my trading jumped to a new level. This process includes a thoughtful rationale for my thesis, position sizing, stop loss, and profit-taking levels.
So these days, whenever positions are moving either for or against me, I take comfort in knowing that I don’t need to make any new decisions – even as my emotions tug at me to do something! I already know what to do because I laid it out in my original trading plan.
And for me, that works 95% of the time.
Why not 100%?
Because nothing is perfect. Not the setup. Not me. Not the rules. Nothing.
Occasionally, I need to use a little discretion. Thankfully, not often. But when I do, I do it from a position of strength.
It's not a bad thing for America, Americans or the American Stock Market that the largest companies in the country are going up in price.
The best players are scoring a lot of points.
That's perfectly normal.
In fact, if you go back and study every bull market over the past 100 years, you'll notice that Technology is a leader in almost every single one of them.
Tech stocks doing well, and outperforming other sectors, is just a classic characteristic of a bull market.
From the Desk of Steve Strazza and Alfonso Depablos
The most significant insider transaction on today's list comes via a Form 4 filing by Snowflake Inc $SNOW director Mike Speiser.
Speiser, also a managing partner at the private equity firm Sutter Hill Ventures, bought 76,200 of SNOW shares for a total amount of roughly $10 million.
Non-members can get a quick recap of the call simply by reading this post each month.
During our monthly calls, we focus on long-term charts in an effort to take a step back and put things into the context of their structural trends.
This is easily one of our most valuable exercises as it forces us to put aside the day-to-day noise and examine the markets from a “big-picture” point of view.
With that as our backdrop, let’s dive right in and discuss three of the most important charts and/or themes from this month’s call.
Welcome back to Under the Hood, where we'll cover all the action for the two weeks ended June 7, 2024. This report is published bi-weekly, in rotation with The Minor Leaguers.
What we do here is analyze the most popular stocks during the week and find opportunities to either join in and ride these momentum names higher, or fade the crowd and bet against them.
We use a variety of sources to generate the list of most popular names.
There are so many new data sources available that all we need to do is organize and curate them in a way that shows us exactly what we want: a list of stocks that are seeing an unusual increase in investor interest.
