The Weekend Shift – Episode 18
The Price Action
Do I need a scanner?
The broader averages and the Weekend winners
- Schlumberger N.V. (SLB) 2-2 continuation
- Disney (DIS) 2-2 reversal down
- Fedex (FDX) 2-2 reversal down
- UPS (UPS) 3-2 reversal down
- Costco (COST) 2-2 continuation down
The spread is the difference between the Bid and the Ask. When trading common this is usually close together. When trading option this can be a totally different story.
Where do we want to be?
Special guest Rob Smith talks XLE, the pandemic stocks, and banks.
Welcome to a brand-new year of trading, and we are off to a great start. What is the Strat Army looking at for the year? So far its XLE and the Energy stocks. Currently 2-1-2 reversal up on the yearly charts, it is without a doubt where the
buyers are. QQQ and the Tech stocks are dumping. The airlines and cruise line stocks are all inside year, and closer to taking out the downside. With the Macro charts (Quarterly, Yearly) we are able to compare participants, and see what the institutional buyers are doing. They are buying energies, and they are going it across the board. This is what we call, “a simultaneous break.” When this happens we look to create as many winning positions as possible in that sector. Then as the price moves, and things get stopped out, only the strong ones remain. Rob easily rattled off 10-15 stock you could work in OIH and XLE. He looks at these charts daily.
Rob has been pointing us to energies since last year. Yes, the year was going inside, but it was green. That told us when it closed it would be primed for a reversal. The 2-1-2 reversal did go in force, and it now trading to the upside aggressively. The best part about this, is that there will be lots of opportunity to get in on this. You didn’t miss the move.
EYE ON IT
In TradingView you can create custom time frames. In the top menu of the chart you will see a drop down option for time interval. Scroll down, you will see were you can create custom time frames.