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stock market

This tag is associated with 5 posts
candlestick chart of MTCH (Match Group)

821x buy: MTCH

(watch video below for market recap and trade details)

MTCH – buy with a limit price of $18.03

Other 821x buy ideas:
BCO – buy with a limit price of $42.15
SQM – buy with a limit price of $41.65
SCCO – buy with a limit price of $33.49
NTES – buy with a limit price of $226.96
HEAR – buy with a limit price of $1.49

Remember, I only provide one new 821x model trade a month for educational purposes.  IT NEVER MAKES SENSE TO PUT YOUR WHOLE ACCOUNT INTO A SINGLE TRADE.  Please refer to the section on position sizing in the 821x Trading Manual.

Please read the terms of service.
picture of sunset in aguada, puerto rico

821x sell: LITE

If you followed the sell suggestion in my tweet on December 29th, you should be completely out of LITE now.  (BTW, because it’s more timely than a post, I’m planning to publish my sell suggestions solely on Twitter going forward, so be sure to follow me @marketchameleon.)

Although, the weekly chart still looks good, we trade using the daily time frame where the trade went against us.  The last thing we want to do is get stubborn and start rationalizing a reason to hold.  That said, you may want to keep an eye on it to see if it flashes a compelling 821x buy signal in the future.

daily candlestick chart of LITE

the big picture still looks good, but I don’t want to let a small paper cut turn into a gusher…

In the meantime, enjoy the festivities tonight and see you next year.  Happy New Year!

 

chart of ticker LITE

821x buy: LITE

(watch video below for market recap and trade details)

LITE – buy with a limit price of $40.50 (sell recommendations will be provided via Twitter.

Other 821x buy ideas:

domestic equities:
BCO – buy with a limit price of $42.15
ASTE – buy with a limit price of $67.84
EGRX – buy with a limit price of ~$79

Remember, I only track one 821x model trade at a time for educational purposes.  IT NEVER MAKES SENSE TO PUT YOUR WHOLE ACCOUNT INTO A SINGLE TRADE.  Please refer to the section on position sizing in the 821x Trading Manual.

Please read the terms of service.
oclr

821x buy: OCLR

(watch video below for market recap and trade details)

OCLR – buy with a limit price of $8.38

Other 821x buy ideas:

domestic equities:
IPHI – buy with a limit price of $41.96
PCH – buy with a limit price of $39.25
TCX – buy with a limit price of $30.95
MPWR – buy with a limit price of $79.29
CGNX – buy with a limit price of $54.88

Remember, I only track one 821x model trade at a time for educational purposes.  IT NEVER MAKES SENSE TO PUT YOUR WHOLE ACCOUNT INTO A SINGLE TRADE.  Please refer to the section on position sizing in the 821x Trading Manual.

Please read the terms of service.
feelinghigh

how do you feel at new highs?

The S&P 500 closed at a new all-time high yesterday.  Upon hearing that, the average investor’s first instinct is to think that the market is topping out.  Stocks are too expensive.  Valuations are dangerously stretched.  The higher they fly, the harder they fall.   We are overdue for a crash etc., etc..

However, we here at DIY Investor know better.  Perma-bear fearmongering is as unhelpful as unchecked bullish exuberance is dangerous.  Emotions and feelings aside, here are the facts: after making it’s FIRST new intraday high in over a year on July 11th, the S&P 500 made 8 additional new highs and there is no reason to think that there aren’t several more on the way.  Only ONE of these new highs will be a long-term top.  MOST of them are just stepping stones to higher and higher prices.  That’s why, counterintuitively, new highs are bullish.

the powerful uptrend that started in 2009 is still intact

high as a kite with no sign of coming down…

If this rally continues, fears of a failed breakout will give way to a fear of missing out.  IF this happens, the market can enter a mania phase where the uptrend gains EVEN MORE momentum.  IF the last remnants of fear give way to unbridled greed, the market can explode into full-on bubble territory, which would mean we would see MUCH higher prices than we are seeing now.  When this hypothetical bubble inevitably bursts, it will end badly for those that are unprepared.  However, those of us with a plan will do very well and be able to lock in the lion’s share of our increased wealth.

Before you accuse me of smoking something, let me just say that I fully understand that this is a far-fetched potential scenario.  Nevertheless, I do believe it is one worth keeping in the back of our minds as we break out of a year consolidation to new highs.

P. S., I only provide the actual buy and sell instructions for our 821x model trade here on the blog and through email to subscribers.  Be sure to follow me on Twitter @marketchameleon for updates in between.  On Tuesday, we received an 821x sell signal on NTG, our model trade. However, I recommended via Twitter that we not close the position unless it closed below $18.10.  The stock pivoted and proceeded to put in an 821x buy signal on Thursday so far averting an unnecessary shakeout!