$TAN weekly

Was a nice VCP and that's all there is to it. The setup doesn't get activated until it breaks through the upper trend line on volume.

This market reminds me of 2000-2002 a lot of tech stocks were destroyed after an epic run. However leaders emerged after forming bases during the correction that led to a slow grind upwards over. Watch for emerging themes - Solar, EV, Electrification, 5G...to spot the leaders.

Alt Energy might be an area to look at as the Inflation Reduction Act (IRA) spurs consumer / corporate spend in the area over next few years. Lot of stocks have nice weekly right sides developing. Solar, EVs penetration remains low and may be entering the hockey stick stage.

Solar, EVs, Electrification, Batteries stocks are ramping up. EVs are just 6% of total US passenger vehicles. Only 8% of US homes have solar panels. These are massive markets entering a hockey stick phase. Valuations will be stretched but right entries may pay off big here.

As I was saying :).....

$SGML up 25% AH on $TSLA rumor. $GM invested in $LAC recently. Big automakers are securing supply chains for the EV future. $GM stock strong in a market pull back as the entire auto fleet is up for EV conversion...a massive market opportunity. #EV & #ELECTRIFICATION theme!

$TAN barrons.com/articles/first…

😉🚀

Most investors would save a ton of $$$s by following a simple rule - if a stock closes below 200D get out of it and if a major index closes below 200D go all cash. Heroes get taken out in a stretcher in the stock market…..better to be a chicken and live to fight another day.

Be greedy when others are fearful? Looks and smells like we are bottoming. But keep an open mind....for this market is mercurial as the weather in London. aaii.com/sentimentsurvey

Despite the difficult action - the sector allocation of the CTT Trend Template, which defines the dynamic universe of stocks that I watch closely, is shaping up nicely. Consumer Discretionary and Tech at the top, Energy and Consumer Defensive nearer the bottom.

In trading/investing, most people (including myself) are wrong much more than we’re right. But when we’re wrong we can’t stay wrong. Staying wrong is how you go broke. Don’t go broke because you can’t make any money if your money is gone (thanks Captain Obvious 😂). The key is

Since Nov $TLT and $SPX have been in sync but the rel. broke down on Mar 7th - when things started to break and flight to safety begin. Prob why $TLT and Big Tech (like long bonds as they are so stable) are rising while all else is falling. Key Q is if panic is fully priced in?

Stks hv been resilient despite a banking crises. $QQE is breaking out. $RSP re-gained its 200d today. $IWO still working on it. Recent growth stk breakouts are holding. Am seeing a lot of decent setups in recent IPOs...that's where my guess is the power will be.

In the stock market it is more important to know "WHAT" is happening than "WHY" is it happening? All the banking stocks provided significant clues before the big declines.

Two rules to make "BIG" money in the stock market - 1. Don't lose too much (when conditions are unfavorable) - This kept you out of trouble last 2 years. 2. Don't sell too fast - (when conditions are favorable) - This is the one we will need to adhere as the mkt turns now.

$RSP, $IWO - Light volume pull back to the 200d MAs seems constructive as the 20d MAs still the to turn up. If they hold and turn up from the MAs...it would be a good spot to add exposure.

Despite all the negative headlines you see war, banking crises, inflation, recession....stocks are slowly improving under the hood. April is one of the strongest months historically. Having said all that...it's a twisted path up...1.5 step forward and 1 step back.

Stage One Market (following a bear market): 1. A one and a half step forward / one step back market. 2. Winners get separated from the losers. 3. Buy near major MAs and take some profits to cushion yourself. 4. Tricky environment - Prone to frequent / deep pullbacks.