Every month I host a conference call for All Star Charts 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. We have been pounding the table on heavy cash positions for the past few months, so we're ready to start allocating that capital this week.
This month's Conference Call will be held on Wednesday July 13, 2016 at 7PM ET. Here are the Registration Details:
If you're one of those people who blindly looks at the S&P500 and thinks stocks are in an uptrend, you can stop reading now and carry on with your rainbows and butterflies. In the real world, the one we live in, stocks have been falling hard for well over a year. Put down your large-cap weighted U.S. indexes for a hot second, and take a look at what's going on.
This week we are doing a full upgrade to our research platform. This is something that we have been working on all year, and finally, with the help of the incredible people at Optuma, we are happy to announce that it is officially happening. I could not be more excited to have everything on one platform with one provider and, most importantly, have the technology to be able to share it seamlessly with all of our Members!
There is a lot that we can learn from Warren Buffett, who many consider to be one of the greatest investors of all time. To me, the most important lesson of all of them, and there are many, is that there are no called strikes on wall street. In other words, in liquid markets, you are not penalized for "missing" a trade. This is a lesson that took me many years to finally understand and is something that has helped me tremendously.
Every 2 weeks I sit down with the good folks at Benzinga to chat about the markets on their morning radio show. Today we went over specific trades that have zero correlation with the S&P500 and Nasdaq100, which are both stuck in a short-term sideways range. The S&P500 has done nothing for 2 months and the Nasdaq100 has done nothing for 3 months. These consolidations come within the context of longer-term bear markets so we would rather look elsewhere for money making opportunities. We discuss precious metals, Crude Oil, Natural Gas, Japanese Yen and some individual stock ideas.
On April 5th 2016, I finally got on board and initiated coverage of Bitcoin. For years, readers had been pressing me to analyze the price behavior of Bitcoin, but I never felt it was a big enough/liquid enough market. After a healthy consolidation since the 4th quarter last year, I said, "If we break out from this base, we could see a monster rally towards $700".
That was enough for me and I put out an announcement in early April that we were initiating coverage of Bitcoin priced in U.S. Dollars from both short-term and longer-term perspectives. Sure enough, just a couple of weeks after we initiated coverage, prices broke out as we had hoped and it has been a screaming buy ever since. Members of All Star Charts have been receiving weekly updates since then and have benefited tremendously over a very short period of time. This weekend, Bitcoin hit our tactical upside target netting a 58% return in less than 2 months. But this doesn't mean that the trade is over. To the contrary, I think there are still plenty of opportunities in this space.
Both American Express and Goldman Sachs have been serious under-performers off both the August 2015 and January 2016 lows when the broader market put in major bottoms. While there have been other laggards in the Dow like Nike, Apple, and Disney, both Goldman Sachs and American Express are currently offering short setups where the risk is well-defined and the risk/reward is elevated.
Last week I shared with you guys what I thought was an interesting breakout. Like I try and do every now and then, I deleted the labels and the y-axis so you guys wouldn't have any biases towards the charts, knowing what it was. Everyone pretty much agreed that it was a screaming buy. Today we're bringing back the legend and y-axis so you can see exactly what is it. We are also flipping it upside down, the way it was originally intended to be, so you can execute according to your specific time horizon and risk tolerance.
