Our once a week look at Sector Trend and Intermarket Analysis is showing up a winding in the rally's breadth. You will see that SPY is now being led by the usual suspects, in addition to the consumer joining the party, in the form of Staples and Discretionary. You will also notice that the Spy is now leading on the top of our Intermarket Analysis, with UUP and TLT losing some relative strength. See all of our Market Conditions Analysis HERE.
We are adding DIS to our long portfolio. Having just thrown a Rel. Strength Breakout, good money-flow, a VERY BULLISH PG rating and a rising overbought / oversold oscillator. Experts like the stock and there is decent insider activity. Financial look "ok", would like to see a little better Price to Sales, but all things considered we think DIS has some room to run. We will manage our stops very religiously, as we always do. You can track our current portfolio and see our past results : HERE. Keep us accountable!
At some point on this Thanksgiving, hopefully we're all going to be full of great food enjoyed with family and friends. However, we're talking about Healthcare. Our Chaikin Power User Long Portfolio already has multiple Healthcare names, but if we had room we would be adding $CI (Cigna).
CI has a Very Bullish PG Rating, price is above a rising long-term Chaikin trend, Fundamentally things look good "under the hood", as Mike would say and $CI threw both Moneyflow Buy and Oversold Buy signals in the last few days.
Also, don't forget that CI belongs to the XLV which has constantly outperformed the SPY for the past several months. You can see our Inter-market Analysis here.
Bottom line- if we had room in our portfolio for another Healthcare we would add CI ... But, discipline is an important part of trading and we are practicing it by sticking to our trading rules and not over exposing ourselves in any one sector, even if it's a top performer.
Happy Thanksgiving From @ChaikinUser
Oversold Buy signal over the weekend on DAL. Detla is part of the Airlines/Transports industry group in the Industrial Sector. It meets all of our trading rules, and Monday we'll be adding it to the Chaikin Power User portfolio.
Battling Overbought Conditions Using Chaikin Analytics and Options to Acquire a Bullish Stock at a Discount to Current Market Value
Watch BEORE and AFTER videos of this naked put trade on MSFT. We were hoping to acquire it at a discount from its current market value and looking to get paid a small premium in exchange to obligation to buy the stock if it traded at or below our strike price at expiration.
Imagine placing a bet at the Craps table for way better than 50/50 odds of working out in your favor. Not only that, but you'd be paid at a rate BETTER than your true odds. That' doesn't happen with even pass-line odds bets at craps. Well that's what option spread trading can be like sometimes, only this scenario gets better because we have Chaikin Analytics putting the wind further at our back. Let me show you how this is like rolling with loaded dice.
The market, though bullish, is really overbought. We're going to exercise patience before adding any more positions to our long stock portfolio. Meanwhile, we think we can use risk defined options and take advantage of high implied volatility to lower our cost basis while establishing a long postion on NVDA. It's an interesting trade idea we've never attempted before, but inspired by the strong Power Gauge rating for the stock and the strength of semi-conductor industry group.
We found an undervalued stock in a strong industry group to trade using the Chaikin system. Watch our complete analysis to entry process in about 15 minutes. Then hold us accountable by tracking our results.
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