Every month I host a conference call for All Star Charts Premium Members where we discuss ongoing themes throughout the global marketplace as well as changes in trends where new positions would be most appropriate. This includes U.S. Stocks & Sectors, International Stock Indexes, Commodities, Currencies and Interest Rate Markets.
Over the past 10 days I have been traveling throughout southeast Asia learning new strategies and perspectives from local traders and investors. I'm lucky that I truly love what I do and the evolution of my process is far from complete. Every day the world is getting smaller and more interconnected than ever. Although cultures my be very different, the human psyche is universal. Our emotions controlled by fear and greed can be seen everywhere from New York City, to St. Louis, MO to London, to Kuala Lumpur. The difference is simply the perspective from which each investor sees the world, and therefore the marketplace. Trying to get inside the mind of these investors has been a fascinating process and I firmly believe that it gives me a leg up over everyone else.
Today I wanted to talk about something that I've never really written about here before but I think is a really important point that I want to make sure I get across. I'm lucky that I get to chat with investors all over the world on a daily basis. Whether you are a professional investor with 30 years of experience, or a student in Hong Kong who just made his/her first trade, I am always willing to chat. Not only does this help me learn about different strategies, objectives and cultures, but also helps give me perspective from all sorts of different angles.
These are the recorded video presentations from Chart Summit, the first ever Virtual Technical Analysis Conference. Premium Members of Allstarcharts get private access to these videos to view at your own pace. I hope you get as much value out of these as I did.
The first ever Chart Summit was a huge success. I can't believe how awesome that was. Considering this was 100% virtual and presenters and audience members were logging in remotely from every part of the world, we managed to get through it without many hiccups. Most of the videos have been published correctly and audience members are able to go back and get through about 95% of all the content. Not bad. I think we'll take it.
The feedback has been amazing so thank you to everyone who helped make this possible, including our presenters, our sponsors and, most importantly, to our audience who showed up with enthusiasm to learn! I love to see so much excitement towards the discipline of Technical Analysis. I did everything I could with the hope that my predecessors who first broke barriers for us Technicians back in the 1960s and 70s would be proud of what we were able to accomplish last week.
This weekend was one of the most amazing professional experiences of my life. I'm fortunate that I have friends who are really smart and willing to give up some of their time on a Saturday to share their knowledge and wisdom with investors all over the world. The turn out for Chart Summit exceeded all expectations and the feedback has been tremendous. This week, videos of all the presentations will be sent out to anyone and everyone who registered for the event www.chartsummit.com
While so many people seem to be focused on the major US Indexes like the S&P500 or the Dow Jones Industrial Average reaching the irrelevant 20,000 level, I prefer to focus on individual stocks and sectors. There are areas of strength, like Technology obviously, and areas of weakness like Healthcare and Consumer Staples. Stocks are like investors, there are winners and losers. I prefer to be a winning investor focused on winning stocks, wouldn't you? Today we're taking a look at Technology as it quietly breaks out again to new highs.
When you talk about sectors that have been out of favor for a long time, it is hard not to think about the Shippers. Although as a group they bottomed out in February last year along with the S&P500 and a lot of other major indexes and sectors, they haven't really done much ever since. It's been more of a sideways, frustrating grind for anyone involved, both longs and shorts.
This week I dug a little deeper into this space and I wanted to share some of my findings. Also note that some of these stocks are not exactly mega-caps. They're poor little shippers. So before doing anything, make sure you check for enough liquidity to fit your parameters. Some are also much smaller market-caps than we're used to talking about here, so just a heads up.
When we look at stocks that continuously sell off when they hit a specific area, we call that “resistance”. But all that really means is that the market is suggesting there are more sellers than buyers near a given price. There is overhead supply of shares, for whatever the reason. We’re not interested in knowing why, we just want to know if there is resistance or not. In some cases, stocks will “break out” above that overhead resistance, proving to us mathematically that the overwhelming amount of sellers at that given area has now been absorbed by an overwhelming amount of buyers for the stock.
As I mentioned recently, I've been working with some new technology and it's allowing me to easily share analysis in a much more detailed way from a sub-sector perspective. In the first top/down review last week we looked at the Media stocks. Today I want to take a deep dive into the precious metals market and really drill down how we want to approach this market. There is more sensitivity when it comes to participants in this market so knowing that is advantageous. We want to 1) recognize this added sensitivity and 2) try to take advantage of that for profit.
