Steady Income Investments

Weekly Money Multiplier Strategy | 3 Trades For The Short Week

Some weeks are better than others. I’ve had a few award me double-digit returns. However, it’s rare that I get close to a 1000% return on a trade.

This week happened to mark one of those moments. I executed a beautiful trade with Weekly Money Multiplier in AutoZone that came up just shy of a 10 bagger.

This is one of my biggest trades in 2020!

Let me tell you – it isn’t easy to find massive winners like this. But I have a few stocks on my radar that I think could provide some explosive profits in the coming week.

Spend some time with the family on Monday see you can get to your charts early on Tuesday morning and kick off this trading week.

Lamb & Weston Holdings (LW)

Maybe you are old enough to remember Saved By The Bell middle school episode where Zach and the gang lost a lot of money on potatoes. They were missing a TPS set up on a potato supplier like Lamb & Weston.

A friend of mine recently brought this chart to my attention, and I really love this setup. This fits a classic TPS strategy with a fantastic risk-reward.

LW 130-Minute Chart

Here’s what I see when I analyze this chart for my TPS strategy:

Trend – I see a clear trend that is preceded by an explosive move higher in the stock off the back of its recent earnings.
Pattern – The upper trendline connects the highs of the candles in a descending fashion. Underneath, the low points are connected in a slightly ascending trend. This creates a triangle consolidation pattern.
Squeeze – At the bottom, there is a series of red and green dots. The red dots indicate a squeeze when the Bollinger Bands move inside the Keltner Channel indicator. This is where I want to enter. When it turns green, the energy from the consolidation is released.

Here’s what I especially like about this trade – normally I stop out when the squeeze releases and the pattern breaks.

Because price is so close to the lower trendline, the amount it could fall relative to a breakout above the pattern is tiny. That means it gives minimal downside risk with a lot of upside potential.

With implied volatility extremely low across the board, I’d look to play this trade with call options. Since I’m using the 130-minute chart, I’d go out about two weeks with the expiration period.

Twillio (TWLO)

This trade fits more with Jeff Bishop’s money pattern than my TPS setup. However, I think the chart is worth discussing for a trade idea this week.

Twilio ran higher for nine days straight before finally having one down day. However, that apparently was enough to stop this relentless uptrend dead in its tracks.

Here’s what I’m talking about on the daily chart.

TWLO Daily Chart

The previous lows from where the stock found support on its drop now act as resistance. Before that, the same level acted as support on the way up. So, when the stock ran into this level, it reversed.

Now, let’s break it down to the hourly timeframe.

TWLO Hourly Chart

I highlighted the recent moving average crossover in yellow. Jeff calls this the ‘money pattern’. It occurs when the 13-period simple moving average crosses over or under the 30-period moving average on the hourly chart. Here it crosses below, while at key support.

So, this setup tells me the stock wants to trade lower. However, I want to be cautious in such a bullish market. I can either play this trade with long put options or selling a call credit spread.

If this stock closes above the previous highs, then it’s broken resistance and the trade is over.

Kinder Morgan (KMI)

This chart isn’t the cleanest TPS setup, but it has some potential. KMI’s 130-minute chart looks pretty decent here.

KMI 130-Minute Chart

Typically, I want a larger move than we saw recently to create a trend. You can see how the first move led to a consolidation and a squeeze that fired higher into the current pattern. However, I do like that the current squeeze is preceded by a squeeze that worked out to the long side.

Now, the red bars at the bottom indicate the momentum has shifted to the downside. So, I’d probably wait on this one before stepping in. I want to see things consolidate longer and shift direction. That would give me confidence the uptrend isn’t over.

Learn how I developed my TPS strategy

I get a lot of questions about how I created my TPS strategy. It wasn’t something I discovered overnight. It actually took 8 years.

In the end, I turned $38,000 into over $2,000,000 in two years. You can learn about the steps I went through in my upcoming webinar. I explain how I went from an unprofitable trader to a RagingBull guru.

Click here to register.

Hubris Is at an All-Time High

By Jeff Clark – the editor of the Jeff Clark Trader

This is one of the strangest things I’ve ever seen…

The stock market is rewarding the popular opinion.

The CBOE put/call ratio (CPC) closed below .80 every day last week. Traders were buying far more call options than put options. And, as we noted in last Monday’s essay, that sort of extreme call buying almost always leads to an immediate pullback in the broad stock market.

That’s because the stock market doesn’t usually play nice. It doesn’t make it easy to make money. And when so many traders rush over to one side of the boat, the stock market usually tips the boat over…

What would you buy if you can easily earn an extra $200 per week? $500? Maybe even $1,000?

Learn How ONE TRADE EACH WEEK can generate your consistent income.

But that hasn’t happened (yet). The stock market has been pressing relentlessly higher. It’s making it seem so easy to make money.

It’s gotten to the point that the financial television talking heads are ridiculing anyone who suggests being cautious – not that there are many folks left doing that.

Seriously… on Friday morning, as the stock market futures were exploding higher again, anchors on all three of the major financial networks resorted to mocking folks with a less-than-optimistic view of the market. It is quite rare to reach that level of hubris.

Granted… I’ve been skeptical of this rally for the past 100 points on the S&P 500. My forehead hurts from banging it so many times on my desk. And, I’ve taken a hit for being too quick to add short exposure to my portfolio.

But, I added some more short exposure to the market on Friday morning.

— RECOMMENDED —

The 3-Stock Retirement Blueprint:

How To Retire Rich With Just 3 Stocks

“This plan helped me retire at 42. Now, for the first time, I’m revealing how it works and I’m even giving away the names and tickers of the 3 stocks you need to get started.” – Millionaire trader, Jeff Clark

Yes, show me the 3 stocks.

Technical conditions are just too overbought. Investor sentiment is just too bullish. And, when the talking heads on CNBC, Bloomberg, and Fox start making fun of folks who preach caution…

Well… that’s probably the best reason ever to be a little cautious.

There’s no way to know for sure when this current rally will finally exhaust itself. I thought it would have done so by now. But, I get the feeling the stock market will look a whole lot different by the end of this week than it did at the end of last week.

The Real Reason Half of U.S. Companies Have Disappeared

By Grant Wasylik, analyst, Palm Beach Daily

This may be the most shocking chart you’ll see this year.

Over the past two decades, nearly half of the publicly traded companies in the U.S. have vanished…

According to the World Bank, the number of U.S. listed companies dropped from a high of 8,090 in 1996 to 4,744 at the end of 2019.

But it’s not just the World Bank seeing this…

The Wilshire 5000 Total Market Index is the oldest measure of the entire U.S. stock market.

When the index launched in 1974, it had 5,000 stocks. It grew as high as 7,562 in 1998. But by the end of 2019, the index had been cut by more than half – to 3,473.

This trend isn’t set to reverse, either. Global consulting firm McKinsey & Company projects 75% of S&P 500 companies will disappear over the next decade.

So what’s causing so many U.S. companies to disappear?

The answer isn’t China… technology… or changing demographics.

Today, I’ll tell you what’s behind the demise of the publicly listed company – and more importantly, how you can profit from it.

— RECOMMENDED —

Gilder: “This Reboot Could Make You Rich”

A wealth revolution is coming.

And it could make you very… very… rich.

That’s the latest forecast from the man they call “America’s #1 futurist”… “Wall Street’s most influential technology trader”… and “a true American genius.”

How so?

“We’re headed for a potential $16.8 trillion reboot,” he says. “Nobody will remain untouched. And a few early investors could walk away with millions.”

Click this link to find out more…

The Incredible Shrinking Stock Market

The main reason we’re seeing fewer publicly listed companies is because they’re staying private much longer.

As you can see in the chart below, in 2018, the average company stayed private for 13 years – over three times longer than in 1999.

The main reason companies are staying private longer is because it’s more profitable for them. And when they eventually go public, they’ll do so at much higher valuations.

As you can see in the chart above, from 1999 to 2018, the average market cap of private companies at IPO has jumped 294%.

For mom-and-pop investors, it’s a double whammy. There are fewer public companies to choose from (meaning fewer opportunities to make profits). And buyers pay a lot more for companies when they go public.

Meanwhile, early investors laugh their way to the bank. They’re making big profits by off-loading private companies with massive valuations onto an unsuspecting public.

But at the Daily, we show you how to turn the tables on Wall Street’s elite…

So if you really want to build your wealth, you’ll need to consider investing in private equity. But until recently, the elite walled off this $5 trillion market from ordinary investors.

Today, that’s all changed. And I’ll show you how anyone with $500 – or less in some cases – can get into this growing market…

— RECOMMENDED —

Legendary stock-picker predicts best-performing stock of 2020

34-yr-old Matt McCall made history when he predicted five 1,000% winners on national TV. Now he’s doing it all over again. 200 stocks he’s recommended soared 100% or more. Sixteen recommendations soared 1,000% or more. And he just went public with his #1 pick for the new year. If you’ve ever wondered how legendary investors find stocks that shoot up 10X, and how you can do it too…

Click here now

Invest in This Growing Market

According to McKinsey & Company, the private market has over $5 trillion in assets under management. So private companies can easily raise capital without going public.

And it’s paid off…

Over the last 20 years, the U.S. Venture Capital – Early Stage Index has returned an average of more than 86% per year. Yet most of the well-known stock indexes – like the S&P 500, Nasdaq, and Russell 2000 – have returned an average of less than 7% per year.

That’s not a typo. Early stage, private companies have returned over 12x what public companies have during the past two decades.

And now, new rules from the Securities and Exchange Commission allow ordinary investors to get in the game and invest in private companies before they go public…

They’re called Regulation CF and Regulation A+ offerings. The main difference is in the amount of money each can raise. Regulation CF offerings can raise up to $1 million from the public. And Regulation A+ offerings can raise up to $50 million.

You can often invest in a Reg CF offering with as little as $100. And minimums for Reg A+ deals generally range from $250–1,000.

This “paycheck loophole” could boost your bottom line by up to $13,300 or more.

Check it out for yourself

Here’s what Daily editor Teeka Tiwari recently had to say about private deals:

Venture capital firms have used them for years to make 10, 100, and even 1,000 times their money.

Now, you can search for private deals yourself on crowdfunding platforms like SeedInvest and MicroVentures. They list dozens of startup companies raising money from the general public.

For massive gains, it’s essential to have an allocation to the private markets. So consider creating your own portfolio of 10–12 startups. You just need one of them to hit it big to make life-changing gains.

But remember, this asset class comes with risk. So a small grubstake is enough. We recommend a total allocation of up to 5% for private markets.

Weekly Money Multiplier Reviews | Nathan Bear: How I made $1.3 million with options

Nathan Bear: I’d made $1.3 million total over the last 12 months using a simple Weekly Money Multiplier strategy over and over again.

How Nathan Bear made $1.3 million over the last 12 months?

And I noticed something strange…. I didn’t feel much about it.

I never thought I’d say something like that.

Because years ago I was a struggling small business owner, worrying every day how I was going to keep my growing family above water and make sure the bills were paid.

When I started trading with just $37,000 in my account I would never have DREAMED it would turn into a million.

And, let me tell you, the FIRST million I made was probably one of the most exciting periods of my life.

But here’s the thing — this is now my FOURTH million. It’s become standard…normal…repetitive.

I no longer get those butterflies in my stomach when I see my account grow another million.

It’s just “business as usual.”

“I need to let you know I listened to your advice and focused only with Nate Bear setups and studied his material with my under 1K account. The month of November (2019) I was green $425 or 17% with 7 winners and 2 losers. This was my first green month this year.” ~ Dan

JOIN NOW

Is that what you WANT to happen?

But, that’s what you WANT to happen.

This is what a consistent, profitable trading strategy is SUPPOSED to do.

It’s supposed to take the emotion out of trading.

It’s supposed to make trading mechanical and repetitive.

The results are supposed to be so predictable and scalable that you look at another $1 million in your account and go, “Well yeah — I was expecting that.”

Lastly — it makes trading BORING.

You shouldn’t be scared, or pumped full of adrenaline, or experiencing swinging emotions of excitement and dread when you trade.

You should be pulling money out of the market like your laptop is your own personal never-ending ATM machine — and YAWNING all the way to the bank.

Would you like to learn the exact same strategy?

Would you like to learn the exact same strategy I’ve been using day after day, month after month, year after year to create millions of dollars in profit.

If so, you can click here RIGHT NOW to get access to the special FREE presentation I’ve put together for you. (I’m going to lay it all on the table).

But hurry, this free “tell all” training starts soon and isn’t going to stay online for much longer.

What you DO with the money can make your life exciting — but the process of getting it SHOULDN’T be an emotional roller coaster ride.

If you’ve tried trading and you’re finding yourself hitting all sorts of highs and lows and you’re wondering if you’re ever going to figure this whole thing out and ACTUALLY get profitable…

Then please — click here now to learn a PROVEN strategy for consistent returns.

Matt McCall – The Legendary Stock-Picker Predicts Best-Performing Stock of 2020

Man who made SIXTEEN 1,000% recommendations just unveiled his #1 stock, live on camera

Most people will go their whole lives without capturing a 1,000% gain. But one man from rural PA may have cracked the code

10 years ago, millionaire early stage investor Matt McCall shared some of his first recommendations with the public, live on air.

The anchors laughed in his face. Yet FIVE of the stocks he named that day went on to soar over 1,000%.

Since then, McCall has built one of the greatest track records in the financial world.

He’s pinpointed over 200 stocks that ALL went on to jump 100% or more. Plus 16 more recommendations that skyrocketed over 1,000%

Today, he’s doing it all over again.

McCall just teamed up with one of the biggest names in finance to reveal the name and ticker symbol of what he predicts will be the best-performing stock of 2020.

He says,

“I’m confident that this is my next big winner – and I haven’t felt this way since back in 2009. This company is on the cutting-edge of one of the greatest technological advancements of the 21st century. You can’t afford to ignore this.”

To see McCall’s prediction for yourself, simply click here to watch his presentation. You’ll get this stock’s name and ticker symbol, absolutely free.

Total Alpha Options Masterclass FREE Enrollment

Jeff Bishop is up for the challenge.

“It took me a decade to become consistently profitable. I didn’t have anyone to help me. Now, I’ve broken down options trading into a simplistic set of 3 phases and I’m confident I can teach someone in just 4 days!”

Are you ready for this!?

Jeff Bishop’s Options Masterclass, only available for a limited time.

You must register before seats fill up.

He’s already helped tens of thousands of traders and it’s his simplistic approach that is helping people rack up profits day after day!

You’re next!

But your first step is to register for this set of FREE training sessions.

Just for doing so, you’ll get his Trader’s Blackbook FREE as well!

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Only available for a limited time. Register immediately.

How This “Boring” Stock Could Be a Game Changer for Your Retirement

By Jeff Clark – the editor of the Jeff Clark Trader

As the market keeps churning relentlessly higher into the new year, the talking heads on financial television are acting like there’s no end in sight – even criticizing anyone that dares to take a bearish stance.

So far, they’ve been right. But, as you’d probably guess… I’m still daring.

FULL DETAILS HERE

Market conditions have gone from overextended… to just ridiculous. Tesla (TSLA), as one example, has run as high as 26% in the past two weeks alone. Other trendy names like Beyond Meat (BYND) have done even better, running up as much as 56% in the same time.

Even established tech behemoths like Apple (AAPL) have made ridiculous moves so far this year. It’s gained over 5% – a massive move for a company of its size – and is coming close to a market capitalization of $1.4 trillion.

This rally just isn’t sustainable. But, investors keep pressing. They’re buying the highest-flying tech companies, eager to squeeze out just a few more percentage points of gains.

But when the market inevitably turns down, those high-flyers will be the first and fastest to return to earth. Folks buying those companies now will get crushed.

That’s why my eye is on something completely different right now. Something I think could outperform all of those companies this year…

I’m talking about value stocks. Specifically, Tupperware Brands (TUP).

I know what you’re thinking… It’s hard to find a stock more “boring” than a company that makes plastic bowls.

And, at first glance, its chart doesn’t seem like much to look at…

TUP, being such a “boring” stock, hasn’t benefited from the market’s risk-on attitude of the past couple years. It’s floundered from a high of around $60 per share at the end of 2017… to just over $9 per share today.

That might be surprising to you. After all, Tupperware has been a staple in American kitchens for over 70 years. On its face, it seems like one of those “sleep well at night” stocks that you buy once and never have to worry about.

But, over the past two years, the market has rewarded the riskier stocks over the safer ones. The lower the share price of TUP goes, it becomes increasingly less likely that any buyers will step up.

And, not too many stocks have had a worse 2019 than TUP. The final two months of the year were particularly brutal.

In late October, TUP issued an earnings report that fell short of expectations. The company also lowered guidance for the fourth quarter and the full year. The stock fell 10% on the news.

Then, in early November, TUP eliminated its dividend. The stock fell another 5% on the news.

Then, in mid-November, the company’s CEO stepped down. TUP dropped another 3%.

The stock finished the year at about $8 per share – up slightly from its low. And, at the lowest price since the “financial crisis” bottom in 2009.

So, why is this stock on my radar?

— RECOMMENDED —

The 3-Stock Retirement Blueprint:

How To Retire Rich With Just 3 Stocks

Yes, show me the 3 stocks.

As I said, TUP was trading near $60 per share at the end of 2017. At that time, the company was generating its most revenue ever – $2.26 billion.

When 2019 results are reported, TUP will likely have generated $1.86 billion for the year – a decline of about 18% from 2017 levels.

But the stock is down 80% from where it was trading in late 2017.

To me, that decline seems excessive. At writing, TUP trades for less than four times this year’s expected earnings. That seems like an excessively cheap price.

And if you zoom in on more recent action on the chart, you’ll see that TUP has made a key move that points to higher prices ahead…

The price of TUP has made both a higher low and a higher high in the past week. That’s a good sign that the stock has bottomed, and may shift to an intermediate-term uptrend.

Even better, that higher high boosted TUP above all of its various moving averages – which is bullish. And, it appears the shorter-term exponential moving averages (red and green lines) are now poised to cross above the 50-day moving average (blue line). This sort of “bullish cross” often marks the start of a new rally phase.

I think the bottom is in for TUP. And it’s one of my favorite cheap stocks to buy right now. It has a long way to run to reach even half of its all-time high. And, as I’ve been saying in these pages, I think the market’s current appetite for risk will soon shift to an appetite for value – and quickly.

But as you know, I’m a trader. While I think buying shares of TUP is a pretty low-risk move right now, I’m much more inclined to trade the stock – reaping big gains over and over again.

That’s why, yesterday, I made it part of my Three-Stock Retirement Blueprint. I think there will be plenty of opportunities for my readers to trade TUP profitably in the months ahead – capturing far more in gains than they ever would by just buying and holding.

— RECOMMENDED —

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On Thursday evening, I recommended our first trade on TUP to readers of my introductory options trading service, Jeff Clark Trader.

As I told them, I think this trade has the potential to quadruple your money along with another trade I provided.

It’s not too late to get into position on this trade. If you want to access my specific guidance on the best way to trade TUP right now, click here to learn more about a subscription to Jeff Clark Trader.

Jason Bond Weekly Windfalls Review | Your Guide to Setting Profit Targets

Next week will be a short one for U.S. markets, with Wall Street shuttered Monday for MLK Day.

Hopefully many of you get the day off and have a chance to relax.

As far as this week, well… traders continue to pump up this overinflated basketball of a market, despite some cracks at the seams.

It appears no matter what happens, stocks are making record highs every single day.

And while I fully expect this decade-plus bull market to run out of steam sooner rather than later, I’ve learned that stepping in front of the tracks when a locomotive is set to pass—costly and dangerous.

So against this backdrop of all-time highs, I thought I’d outline one way to time your profit-taking — and show you how it worked on a pair of FAANG stocks — as well as how to identify entry points.

Because while I’m no longer a poor elementary teacher swimming in student loan debt, I will always be an educator at heart, and I only want the best for my subscribers — of Weekly Windfalls and other services — like Sean here (thanks, man).

Who is Fibonacci?

No, Leonardo Fibonacci (aka – Leonardo Bonacci) is not a RagingBull guru… but he damn well could’ve been.

The Italian mathematician was born around 1170, and as a young man traveled throughout the Mediterranean learning how various merchants did math.

He discovered that the Roman numeral system was much more difficult to calculate than the Hindu-Arabic numeral system, and said as much in his Liber Abaci book, which introduced the decimal place system to the Western world.

Studying the growth of the rabbit population, Fibonacci popularized his now famous sequence of numbers.

The Fibonacci sequence begins with 0 and 1, and each subsequent number is the sum of the two previous numbers.

So, 0, 1, 1, 2, 3, 5, 8, 13, 21, etc…

The sequence can be found in several unexpected places, including in architecture and electrical networks, and the Fibonacci spiral can be seen all throughout nature, like in the structure of pineapples and daisies.

It was even incorporated into the plot line of The Da Vinci Code and an episode of “Criminal Minds.”

But enough about that underachiever! (I kid.)

Fibonacci Retracements

If you’ve been with me a while, you already know that one of my favorite patterns to trade is the Fibonacci retracement.

When a stock makes a huge move higher in short order, and then stalls, it will often retrace — or backpedal — to support near the key Fibonacci lines, usually giving back 23.6%, 38.2%, 61.8%, or 76.4%, with 50% an unofficial (but important) level.

For example, if Stock XYZ rallies from $100 to $200, it might eventually drop back to find support near $177, which would be a nearly 23.6% retracement of that rally.

Pullbacks to these Fibonacci retracement levels often act as zones to buy a stock (in Jason Bond Picks) or initiate a bull credit spread (in Weekly Windfalls ).

Take a look at good ol’ Apple (AAPL).

Shares of the iPhone maker started 2019 on an absolute tear, rallying from around $140 at the start of the year to well above $210 by late April.

You can see on the chart below that I’ve placed the 0% Fibonacci line at the top of that rally, and the 100% line at the bottom.

Therefore, a 100% retracement would mean AAPL forfeited all its gains.

As you can see, after peaking in the second quarter, the stock took a dive, with the bleeding ultimately stopping around $170 — a 61.8% Fibonacci retracement of that rally.

The rebound subsequently stalled again back around AAPL’s previous highs, before the shares ultimately broke north of the range in September.

On the flip side, stocks that have taken a beating could also bounce into Fibonacci retracement or other key percentage levels.

For instance, during the fourth-quarter 2018 drubbing, Amazon (AMZN) went from being north of $2,000 (my 100% marker) to falling to around $1,300 (my 0% marker) in short order.

The stock’s early 2019 rebound hesitated a bit in the $1,700 region, which represented a 50% retracement of that sell-off.

Once the shares got beyond that area, gains once again were capped just above $2,000, and subsequent retreats were contained around $1,700.

Now, AMZN is struggling to get past the $1,900 area — a 78.6% Fibonacci retracement — indicating that even more than a year later, these levels are still in play.

Fibonacci Extensions

Now, how do you use Fibonacci levels to set profit targets?

While there are two points you need to set for Fibonacci retracements (0% and 100%; the rest should auto-populate beyond that on most trading platforms), on many platforms there are three data points to set with extensions, assuming you’re measuring an uptrend:

First, you’ll set your 0% at the swing low (or swing high, if you’re looking at a downtrend)
Then, you’ll set your 100% at the swing high (or low ^^^)
Finally, you’ll set your third point back at a swing low (or high ^^^)

This should populate Fibonacci extensions for you — or at least one of the most-watched extensions, at 161.8%.

In platforms like ThinkorSwim, and many others, you can manually set additional Fibonacci extensions.

Now, I’ve seen different traders plug in different sets of numbers. But it should be noted that most traders use Fibonacci levels in reverse order above 100% to calculate extensions.

So, in the example below, I included the 123.6% level and the 161.8% level, and while it’s not a Fibonacci extension, I included the round 150% level, too.

That said, let’s take a look at Mattel (MAT) stock.

The shares went from single digits in August to peaking around $13 by the middle of the fourth quarter, with help from a big-volume bull gap.

They then went on to retrace 50% of that surge by December, testing support just above $11.

As you can see, the shares subsequently moved beyond their former peak before the start of 2020, though upward momentum once again ran out of steam, this time just shy of $15.

This level represented a 138.2% Fibonacci EXTENSION of the initial rally.

It’s also the same region as MAT’s mid-2019 high.

As such, it seems some traders took profits at this level, as the stock has since taken a breather.

Of course, some of the recent losses were due to dismal holiday sales figures from Target (TGT), which said toy sales were particularly lackluster in December.

Looking at it another way — using the same 0% marker from August, but adjusting the 100% level to MAT’s recent high around $14.72 — one could surmise that if the stock can get past $15, the next area to take profits might be just above $16, which is a 123.6% Fibonacci extension of that longer-term rally.

In conclusion, guys and gals, I hope this lesson helps propel your trading, and aids you in identifying where stocks might stall — to either the upside or the downside.

The important takeaways here are twofold:

Fibonacci retracements are a great way to find ENTRY points for a trade
Fibonacci extensions are interpreted differently by different traders, but they’re a great way to identify EXIT points for a trade

As with any other indicator or form of technical analysis, the Fibonacci sequence shouldn’t be traded on alone.

Make sure you’re using other tools to help identify trends — like overbought/oversold scans, for instance — and don’t go into a trade unless the SETUP and the PLAN are concrete.

That’s my philosophy in Weekly Windfalls — and if you upgrade to the premium version today, you can watch me trade these indicators and more in REAL TIME.

[Ed. Note: Jason Bond runs
JasonBondPicks.com and TheWeeklyWindfalls.com. In 2015 he earned a 180% return on his money. Then in 2016 he turned a $100,000 account into $430,000! Discover How He Did It]

Source: ragingbull.com | Original Link

Three Steps Could Help Your Portfolio Survive the Next Crash

By Dr. David Eifrig, editor, Retirement Millionaire

When my business partners and I decided to create our Stansberry Portfolio Solutions service a few years back, we had one goal in mind: Give subscribers a one-stop shop where they can find a portfolio built around our best ideas.

So Steve and I got together with our company’s founder Porter Stansberry… And we decided to create three portfolios that covered anything subscribers could possibly need and want, based on what we would want if our roles were reversed.

It was an audacious plan…

We created The Capital Portfolio for folks – likely younger ones – who were looking for capital gains over a longer period of time.

The Income Portfolio was created for people who need to preserve capital and use it to generate high current and future income.

We topped these off with The Total Portfolio, which was designed to look across all of Stansberry Research’s newsletters and trading services… and blend our best ideas into a single portfolio that balances growth, value, and income ideas, along with market hedges that protect your principal during a downturn.

As of last year, we added a fourth portfolio to the mix… The Defensive Portfolio. It’s the “stay wealthy” counterpart to Capital’s “get wealthy” objective.

Stansberry Research had never done something like this before. As a group, we were nervous. As the “guru” of my own investment letter, it’s easy to decide what’s best.

But bringing great minds together to agree and allocate… that was going to be interesting.

What if we couldn’t do it? After all, as I’ll show you today, a portfolio isn’t just a collection of good businesses…

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A good portfolio requires matching your position size with your convictions. It requires deciding on specific goals – so far as risk and return goes – and sorting through thousands of potential investments to reach them.

For us, it was a new set of challenges.

For example, the stock market’s bull run is getting older and older. Many market metrics show valuations that textbooks and Nobel Prize-winning economists would have told you were unattainable.

As a result, Total’s cash position has at times exceeded 20% of the portfolio, and short positions have at times made up to 12%. Even Income has been holding 3%-7% in cash at times, looking for safe opportunities to generate income over the long term.

These decisions have consequences for our results…

Growing your wealth safely requires more layers than just picking different stocks. We had to beef up our firm’s position-tracking and analytics, add staff members to monitor every tick in the markets, and regularly convene our investment committee for long discussions about the allocations of winners and losers. For us, a percentage here and a percentage there makes a difference.

And so far… I think we’ve nailed it.

In 2019, the benchmark S&P 500 Index went up 31% annualized. Meanwhile, our portfolios have delivered annualized returns of 42% (Capital), 32.6% (Total), 27.3% (Income), and 20.3% (Defensive).

In other words, Total and Capital both surpassed the broader market. And Income and Defensive both did exceedingly well, despite holding substantial positions in cash and gold, fixed-income investments (for Income), and safe short-term government bonds (for Defensive).

Our audacious plan has turned out to be a good one. But don’t judge us by these returns alone. The true test will be what comes next… Our best performance is still ahead of us.

Anyone could have earned roughly 30% – or close to it – in an S&P 500 Index fund last year (including dividends). Earn that year after year, and you’re on your way to doubling your money every three years or so.

But to be frank… you won’t earn that most years. Most years won’t be anything like 2019. And most stretches of nearly a decade won’t come close to delivering the returns we’ve enjoyed since the market bottomed in March 2009.

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Those index returns are great when you can get them. But a reckoning is coming. It always does.

We don’t know when… but the stock market has 10%, 20%, and 30% drops in its future. That’s just what markets do.

In my view, you can’t – and shouldn’t try to – trade around reasonable declines. Taxes are the most obvious reason. After you pay capital-gains taxes, you’d have to trade a 20% correction exactly right to come out ahead. And no one gets it exactly right.

Instead, when the market correction does come, it will unveil the true strengths of the portfolios we’ve built.

As I said, The Total Portfolio has beaten the stock market. But it has done so while also holding a large amount of capital in short positions, cash, and even gold stocks. Those hedges will lose when the market keeps hitting new highs, but they’ll keep you safe when it declines.

And while this focus on risk management and capital preservation has sometimes muted our results… it will pay off in the long run.

I hope you’ve been putting this model to work in your own portfolio. Of course, this does mean it’s important to select high-quality businesses that deliver large gains and offset what you’ve set aside in conservative investments.

That’s what we’ve done in our Portfolio Solutions. We’ve been able to beat the market without feeling like we overextended ourselves into the hottest names. Our big gainers allow us to hold the safe positions and still ride the market higher.

But no matter what your personal investing approach is, the important thing is to sleep well at night knowing your portfolio can withstand a surprise drawdown.

So make sure you follow these three steps…

Pay attention to your position sizes and your aversion to risk (think losses and roller-coaster stock prices). Don’t be tempted to try timing the tops and bottoms… It’s statistically impossible.

Be sure you also think about cash, because at least 10% of the time over a three-year period, cash outperforms the other asset classes. Having some capital for bargain hunting when you need it most will also keep you from having to sell assets at precisely the wrong time (when the selling is overdone).

Finally, the old adage about letting profits run and cutting losses short has never been so critical in our investing lifetime.

This Chart Will Tell the Market’s Next Move

By Jeff Clark – the editor of the Delta Report Newsletter

The financial sector is gearing up for a big move.

The broad stock market has been rallying straight up for the past month. The S&P 500, for example, is up 5% since mid-December. That’s a pretty spectacular one-month gain. And, most sectors have enjoyed the party…

Except for financial stocks.

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The Financial Select Sector SPDR Fund (XLF) closed at $30.83 per share on December 17. It closed at $30.94 yesterday. In other words, during a huge rally in the broad stock market, financial stocks have done nothing.

This is particularly odd because financial stocks tend to lead the broad stock market.

Bearish traders can point to the lagging action in the banks and brokerage stocks as a caution sign. Bullish trades might argue the financial sector is set to play “catch-up” and fuel the next stage of the market rally.

Who’s right?

We’ll know soon enough. The chart of XLF is set up for a really big move. Take a look…

This chart shows the action in XLF plotted along with its Bollinger Bands (the solid blue line in the chart). Notice how the bands are pinching together. This tells us that energy is building for a big move in the financial sector – in one direction or the other.

The blue arrows point to previous times when the bands contracted. Sometimes the ensuing move was higher. Sometimes it was lower. There’s not much consistency to the move – except that it was always a BIG move.

The financial sector is on the verge of one of those big moves right now. There’s no way to tell which way the sector will break. All we know for sure is that it will be a BIG break.

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And, since the financial sector tends to lead the market, traders should pay attention to the direction in which this chart breaks. An upside breakout will be bullish and will likely fuel another leg higher for the broad stock market.

On the other hand, a downside break will be bearish… and likely usher in the elusive decline I’ve been warning about for the past few weeks.