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2 |1 |00:00:49,440 ~-~-> 00:00:58,920 |ICT: Alright guys, we're looking at the ICT stock picking process. And this is going to be a little bit different than most of you are accustomed to, because
3 |2 |00:00:58,950 ~-~-> 00:01:15,120 |most of you probably know me by foreign exchange or forex trading. But I've deep deep roots back in the early 2000s. With stock market. And originally, I started
4 |3 |00:01:15,120 ~-~-> 00:01:28,410 |as commodity trader, but moved from that asset class slowly into indices, and then stock stock investing. And I'm going to share with you what I collected and
5 |4 |00:01:28,410 ~-~-> 00:01:36,390 |believe still to this day, and I still believe it'll hold true going forward. You know, what the best approaches to doing it, but why should we be even
6 |5 |00:01:36,390 ~-~-> 00:01:50,100 |considering the stock market because obviously, at the time of this recording, in 2015, the market has gone through a rather aggressive retracement. And I can
7 |6 |00:01:50,730 ~-~-> 00:02:01,740 |pat myself on the back and say that we talked about this happening in 2014, in the summer, going into the fall of 2014. Stating that around July, we would most
8 |7 |00:02:01,740 ~-~-> 00:02:10,290 |likely create an important high in top of the marketplace on the stocks, and it would slide into the October time period where we expect a seasonal low to form.
9 |8 |00:02:10,590 ~-~-> 00:02:19,590 |And we'll talk more about that as we go through this teaching. But why should anyone been considering stocks? Well, for the most part, most individuals are
10 |9 |00:02:19,590 ~-~-> 00:02:31,920 |listening to my voice here are working individuals, they have their job, their employers allow them to have some measure of investing, whether it be a 401, or
11 |10 |00:02:31,920 ~-~-> 00:02:40,380 |retirement account or something of that nature. And it allows them to take a small amount of of their money and moving into a savings vehicle that allows
12 |11 |00:02:40,380 ~-~-> 00:02:48,720 |them to invest in the stock market. Now, the stock market even though it does have inherent risks, and everything that I'm teaching and sharing in here is
13 |12 |00:02:48,720 ~-~-> 00:02:57,960 |just for informational purposes only, I cannot guarantee nor can anyone else guarantee future profits. But it's the way I digest the market. It's the way I
14 |13 |00:02:57,960 ~-~-> 00:03:08,130 |look at the marketplace. And I'll leave it up to you to determine the value of which I share in this in this teaching. A lot of it actually comes by way of
15 |14 |00:03:09,240 ~-~-> 00:03:18,780 |outside sources. So I'm not claiming it originality with any of this stuff. But I did filter out a lot of the crap that most people involved in terms of looking
16 |15 |00:03:18,780 ~-~-> 00:03:30,300 |at stocks and trying to pick them. But I believe that the stock market for the Average Joe gives an opportunity, if done effectively and correctly, allows them
17 |16 |00:03:30,300 ~-~-> 00:03:41,340 |to maximize their earning potential. And a little bit of teaching on compound interest and allowing your money and submitting the time, an average person
18 |17 |00:03:41,340 ~-~-> 00:03:53,070 |could absolutely do very well to build a retirement account. Now mutual funds most of you that have invested obviously, are familiar with this term, mutual
19 |18 |00:03:53,070 ~-~-> 00:04:04,590 |fund. And unfortunately, they're not what most think. And when I was coming up in as a young man, late teens going into my 20s, I happened to date a young lady
20 |19 |00:04:04,740 ~-~-> 00:04:21,750 |that was very, very much in favor of mutual funds. And back then it was a time when fidelity. They had the the big market share of individuals throwing money
21 |20 |00:04:21,750 ~-~-> 00:04:32,790 |in their mutual funds. And I had the privilege to sit down almost on a weekly basis and hear her father tell me how that would be the best thing for me to do
22 |21 |00:04:32,790 ~-~-> 00:04:41,220 |is build a mutual fund plan to start throwing money into it and everything will be great by the time I'm retired. Well, I'll be honest, it didn't make any sense
23 |22 |00:04:41,220 ~-~-> 00:04:50,220 |to me because if it was that easy, everyone would be doing it. So I held off with the mutual fund thing. And I learned more about the industry learn more
24 |23 |00:04:50,220 ~-~-> 00:05:01,140 |about the investment process and how stocks rotate in and out. The money flow system I've learned all those things over these years and Once I really started
25 |24 |00:05:01,170 ~-~-> 00:05:13,950 |digging in deeper about mutual funds and managed accounts and such, I quickly arrived at the opinion that it's really not what it's cracked up to be. It's
26 |25 |00:05:16,170 ~-~-> 00:05:27,180 |it's a wonderful theory, it's a wonderful idea, but I don't believe it pays out to what is sold them as an expectation in day as the customer or the person
27 |26 |00:05:27,180 ~-~-> 00:05:36,450 |investing. Because here's the here's the premise, you go to work, you work your hours, your gross pay, you take a portion of that your employer matches whatever
28 |27 |00:05:36,450 ~-~-> 00:05:46,740 |portion of that is, you've elected up to a certain number, or figure, a lot of people will will match up to one or 2%, maybe sometimes more, I don't know, I'd
29 |28 |00:05:46,740 ~-~-> 00:05:56,460 |so to varying degree on what's allowed by employers to match their contributions that employee employee makes. And then these contributions on a weekly or
30 |29 |00:05:56,460 ~-~-> 00:06:13,800 |payroll basis, build up more equity in the account to be used in the fund, or the IRA. And the tax benefits of not taxing that income, reduces your overall
31 |30 |00:06:14,010 ~-~-> 00:06:23,460 |taxable income, and allows you to save at a higher rate without taxation. And if you have the benefit of having compound interest work in your favor in the stock
32 |31 |00:06:23,460 ~-~-> 00:06:30,330 |market moves in your favor, and your fund does well, you could work towards having a large nest egg at the time of retirement and absolutely sounds
33 |32 |00:06:30,330 ~-~-> 00:06:38,700 |wonderful. It's one of the best sales pitches there ever was created in terms of making money and letting everyone feel like they had an opportunity to get in
34 |33 |00:06:38,700 ~-~-> 00:06:44,850 |there and be a part of it. But I haven't anywhere work at all, except for go to work, take a little bit of money out and don't see the money. And that's your
35 |34 |00:06:44,850 ~-~-> 00:06:56,280 |plan. Well, a lot of folks don't realize it. But these funds mutual funds, they have management fees, and they are hidden from most individuals, okay. And by
36 |35 |00:06:56,280 ~-~-> 00:07:09,060 |foreign large, most of them if not all of them have a 2% management fee. So if your fund and the market presents you with a 2% return over the year, what are
37 |36 |00:07:09,060 ~-~-> 00:07:21,480 |you actually making nothing. In some cases, you're probably losing money. And this is one of the things that they do not discuss with you, at the time of
38 |37 |00:07:21,480 ~-~-> 00:07:31,770 |startup, when you put your mutual fund together, and you start contributing to it, there are all these additional fees that you have to pay. And for lackluster
39 |38 |00:07:31,770 ~-~-> 00:07:42,060 |results. The idea is great. But if you're going to do anything with an IRA, or retirement account, and if you're going to benefit from the tax free deferment
40 |39 |00:07:42,870 ~-~-> 00:07:53,280 |of the gains, ideally, you want to set it up as a self directed IRA, where you have the ability to move from stocks to bonds to cash, and you control what
41 |40 |00:07:53,280 ~-~-> 00:08:02,850 |stocks and what bonds and all those things yourself. That way you are managing the shop, you're managing the store, if you will, and not allowing someone else
42 |41 |00:08:02,850 ~-~-> 00:08:14,820 |to do or dictate what they think is in your best interest. Because, honestly, by law, it's not like it's not in the contract, or the agreement that is in your
43 |42 |00:08:14,820 ~-~-> 00:08:26,070 |best interest to make you money. That's not That's not what it is, okay, the mutual fund is in operation for the benefit of the holding firm. They're making
44 |43 |00:08:26,070 ~-~-> 00:08:34,590 |money off of you by churning. And many times mutual fund is taking your money along with everyone else collectively, and they're buying and selling and buying
45 |44 |00:08:34,590 ~-~-> 00:08:45,300 |and selling and selling and selling. And there's all transactional fees, okay, that they're collecting, and at the great liberty that they take on using
46 |45 |00:08:45,300 ~-~-> 00:08:57,000 |everyone else's money, not again, with the perspective or goal in mind to make you better than you were when you first started with them. Okay. And I've seen
47 |46 |00:08:57,000 ~-~-> 00:09:05,520 |so many people either write to me by email, or I've met in person, and they all say, Look, you know, what's going on? I've been investing in this thing, the
48 |47 |00:09:05,520 ~-~-> 00:09:13,500 |markets, you know, going up and my stuffs not making any money. I don't understand it. Well, it's very frustrating. But I think after looking at what
49 |48 |00:09:13,500 ~-~-> 00:09:21,810 |we're going to share in here, you can remove yourself from that environment, okay. And if you do have an IRA that's being managed, consider doing a rollover
50 |49 |00:09:21,810 ~-~-> 00:09:25,980 |into a self directed IRA. So that way, you're controlling the money, you're controlling everything.
51 |50 |00:09:29,039 ~-~-> 00:09:37,949 |Now, as I mentioned a second ago, stocks are not always the best place to be and when that happens to be the case, you need to either be able to be in bond
52 |51 |00:09:37,949 ~-~-> 00:09:47,849 |market or you need to be in cash, and certain accounts have limitations on what you can do. But you can always make better decisions if you're in a self
53 |52 |00:09:47,849 ~-~-> 00:09:59,549 |directed, managed fund or managed mutual fund or managed 401k Something that affect you really give the power you know and decision making over to someone
54 |53 |00:09:59,549 ~-~-> 00:10:06,599 |else you'll know ever meet, you don't see these individuals, they don't explain their their their investment process, just because it gives you a prospect as
55 |54 |00:10:06,599 ~-~-> 00:10:20,609 |about what has happened over the last 15 or 20 years, okay, what they do is it's, it's a math game, okay. And it's an averaging of gains, it's not what
56 |55 |00:10:20,609 ~-~-> 00:10:29,939 |you're getting on a year to year basis. And if you have a really good barnburner year, that can be spread across and even out in some of the really bad years, or
57 |56 |00:10:29,969 ~-~-> 00:10:41,489 |lackluster next to nothing years, and create a return that really wasn't there. Okay, and my, here's my process and thinking, if you could take a system of
58 |57 |00:10:41,489 ~-~-> 00:10:51,209 |trading, investing, or whatever it is, and if you could take out the very best year or very best results, and take out the very poor results, what's left, if
59 |58 |00:10:51,209 ~-~-> 00:10:59,849 |you have a winning system that consistently makes money in net condition, dinette, something worthwhile. But to have something that has like a, you know,
60 |59 |00:10:59,849 ~-~-> 00:11:08,879 |one or two year, really good performance, and then take those numbers and spread it across 10 or 15 or 20 years, it really dilutes the results. And it gives you
61 |60 |00:11:08,879 ~-~-> 00:11:17,069 |a false impression of what would be expected going forward. And it's nowhere near what you see, okay. Many times most mutual funds are actually losing money.
62 |61 |00:11:17,939 ~-~-> 00:11:25,829 |And it's because they're being eaten up with all of these management fees and costs. And again, no one's gonna tell you these things when you sit down because
63 |62 |00:11:25,829 ~-~-> 00:11:36,509 |they're all hidden. Again, I said it before I'm saying it again, you have to be the manager of your own money. Think about what that does, it gives you the
64 |63 |00:11:36,509 ~-~-> 00:11:46,439 |power and control and the decision making process. There may be times when you don't feel like taking the risk on assuming a stock position, it may be
65 |64 |00:11:46,469 ~-~-> 00:11:55,769 |beneficial for you to sit in cash, it may be a beneficial position for you to move in the bond market. Just because your money is being put aside for
66 |65 |00:11:55,769 ~-~-> 00:12:07,799 |retirement doesn't mean you actively have to put on risk. Okay. And by being the shop owner by being the one at the wheel, if you will, okay, this ship that
67 |66 |00:12:07,799 ~-~-> 00:12:19,469 |you're sailing towards retirement in, okay, you have to be the captain at the helm. And if you are comfortable letting someone dictate the direction and the
68 |67 |00:12:19,469 ~-~-> 00:12:31,949 |outcome of that long term goal, you have an n real realistic measure of trust, because these individuals honestly are not in your best interest. They're not
69 |68 |00:12:31,949 ~-~-> 00:12:38,669 |doing this for you. They're doing it for their own self, okay, they're making money, whether you make money or not, the goal is for them to make money in
70 |69 |00:12:38,669 ~-~-> 00:12:46,679 |transactions of buying and selling stocks all year long, churning the account, okay, collected with everyone else's money, they're getting all kinds of hidden
71 |70 |00:12:46,679 ~-~-> 00:12:56,609 |fees and charging your, your fund, okay, whether it makes money or not, you could lose money in the investing and still have to pay the management fees. And
72 |71 |00:12:56,609 ~-~-> 00:13:04,319 |that just compounds and compounds and compounds. And one of the one of the wonderful
73 |72 |00:13:05,850 ~-~-> 00:13:18,450 |reads I've recently did was Tony Robbins, Anthony Robbins, mastering the money game. While it doesn't really deliver, in my opinion, what the title suggests,
74 |73 |00:13:19,320 ~-~-> 00:13:34,560 |there is a lot of nuggets in that book, as it relates to the inside track of why the investment industry has such a poor payout, versus the sales pitch they give
75 |74 |00:13:34,560 ~-~-> 00:13:41,280 |everyone in this sales pitches they give it today are really no different than what the ones they did, you know, over 20 years ago when I was just new
76 |75 |00:13:41,280 ~-~-> 00:13:52,980 |sprouting up as a would be investor or trader. And the facts that he supplies in that book are absolutely shocking. And he gets some from sources that are pretty
77 |76 |00:13:52,980 ~-~-> 00:14:01,920 |well known. And, to my knowledge, no one's really came out and rebutted any of the things he said. But again, if you want to just have something really, you
78 |77 |00:14:01,920 ~-~-> 00:14:10,950 |know, something to tie up for about 2530 hours or whatever, if you want something to listen to over a month, commuting back and forth your job, get the
79 |78 |00:14:10,950 ~-~-> 00:14:20,910 |audiobook, you know, just get the audiobook and just listen to it in your commute. And honestly, it's it's alarming at some of the things that you know,
80 |79 |00:14:21,240 ~-~-> 00:14:31,590 |goes on and contrast that with what most people's expectations are. And again, the book is not being plugged okay to teach you how to master any money because
81 |80 |00:14:31,590 ~-~-> 00:14:42,180 |I don't believe that's what he does in the book. I think he missed the mark in that. But I think what's valuable in it is the understanding that what investors
82 |81 |00:14:42,180 ~-~-> 00:14:51,060 |expect and how the operation is actually being done. And the people that put these vehicles in place, what their real motives are and what they're actually
83 |82 |00:14:51,060 ~-~-> 00:15:00,660 |doing. I think it's again, one of the, you know, better reads I've had at the beginning of the year, and I came back to it in reference to a A lot of things
84 |83 |00:15:00,660 ~-~-> 00:15:08,670 |that you'll hear in this teaching as it relates to the downside. I've never worked in the stock industry, I've never worked in that field, okay, but I do
85 |84 |00:15:08,670 ~-~-> 00:15:20,790 |have a lot of experience in it as a trader, okay, and as an investor, but it made a lot of sense when the individuals that he interviewed for that book gave
86 |85 |00:15:20,790 ~-~-> 00:15:28,110 |their spin on what goes on. And again, it's just one of those books, I think you're something you should have in your library or go to the library, if you
87 |86 |00:15:28,110 ~-~-> 00:15:35,550 |can get it in your public library, whatever, read it, you know, do what you got to do to get it and read it. But I, I digested it with an audio book, because
88 |87 |00:15:35,550 ~-~-> 00:15:43,530 |that's how most of my my readings done, I do about five to 10 books a month, and not just investing stuff, but different things. And I digest them by audiobook.
89 |88 |00:15:43,860 ~-~-> 00:15:54,450 |And that's one of the things I think that you should use as a supplementary material for this teaching, again, not so much for teaching how to trade or
90 |89 |00:15:54,450 ~-~-> 00:16:03,780 |invest, but just the, the the background to how the industry works. And some of the things are actually very fascinating. But when you are in control, and you
91 |90 |00:16:03,780 ~-~-> 00:16:14,550 |are empowered with knowledge, you'll be able to sleep at night, and I just couldn't have new millions of dollars of my retail, I'm sorry, I read retirement
92 |91 |00:16:14,550 ~-~-> 00:16:24,690 |funds at risk just because someone gave me a really good prospectus or a brochure saying this is what they've done over the last one years. Yeah, doesn't
93 |92 |00:16:24,690 ~-~-> 00:16:31,320 |make a difference. You know, again, like we said, in beginning of all my teachings, past performance is not indicative of future results. So just simply
94 |93 |00:16:31,320 ~-~-> 00:16:37,680 |because it worked in the past, there's no guarantee it's going to be like that in the future. And no one can guarantee any specific returns, we all aim for
95 |94 |00:16:37,680 ~-~-> 00:16:45,810 |them. But you're going to do a better job of keeping track of what's going on and keeping yourself on track than someone else that you'll never meet. They
96 |95 |00:16:45,810 ~-~-> 00:16:52,500 |don't know you they don't know your children's needs. They don't know, your college plans for your children. They don't know your retirement plans. They
97 |96 |00:16:52,500 ~-~-> 00:17:00,300 |don't have any of those things detailed. Okay, they just sold you the idea that you're putting money in here, you're going to have a bigger amount at the end of
98 |97 |00:17:00,300 ~-~-> 00:17:10,200 |the road when you get to the end of your life. Oh, yeah. They sold the idea. So far down the road, okay, that way, you're not going to be badgering them on a
99 |98 |00:17:10,200 ~-~-> 00:17:19,800 |day to day basis when they're not hitting the mark, but over a long period of time. Okay, if they take 2% of all your money, okay. 2% taken away really takes
100 |99 |00:17:19,800 ~-~-> 00:17:28,440 |away a lot of the money and again, counsel you to go check that book out. Again, it's Anthony Robbins mastering the money game. Again, it's not a plug for
101 |100 |00:17:28,440 ~-~-> 00:17:37,800 |trading. It's just for all the facts and details that go on in the industry and how we we are really misled to believe for stock investing in retirement,
102 |101 |00:17:38,760 ~-~-> 00:17:44,250 |investing. What, what really goes on contrasting to the expectations.
103 |102 |00:17:45,960 ~-~-> 00:17:55,080 |Now, what stocks do we pick them up? There's so many of them yet the MFC of NYSC of NASDAQ, you have all these different stocks and yet, you know, index funds
104 |103 |00:17:55,080 ~-~-> 00:18:05,400 |and all these wonderful vehicles that are out there, we have such a smorgasbord of trading asset classes will not asset class. Well, you asset classes too. But
105 |104 |00:18:05,580 ~-~-> 00:18:18,120 |we have so many stocks to choose from industry groups and sectors. What do we what do we pick? Well, I'm going to mention some of the things you can do in
106 |105 |00:18:18,120 ~-~-> 00:18:26,040 |stock trading. Most of you probably already know it, but it's just a means of adding completion to the presentation. But I believe the easiest way for someone
107 |106 |00:18:26,040 ~-~-> 00:18:36,330 |to start out as a stock trader that's managing their own IRA their own investments, okay, for retirement, I believe that if you stick to the stocks
108 |107 |00:18:36,330 ~-~-> 00:18:47,130 |that are inside of the composite indexes, okay, that being the Dow 30 years only 30 stocks in the s&p 500 years 500 Big Blue Chip companies, okay, and it's a
109 |108 |00:18:47,130 ~-~-> 00:18:55,860 |rather large universe, I know. But nonetheless, the the best companies out there, and then you have the NASDAQ Composite, which is really based on 100
110 |109 |00:18:55,860 ~-~-> 00:19:08,730 |stocks in the NASDAQ. So collectively, you have 630 stocks in a universe, if you just stick to index stocks. If the indices are moving higher, you want to be
111 |110 |00:19:08,730 ~-~-> 00:19:18,240 |focusing on the leadership stocks in those indices. Okay. And the stock market as a whole is going to move the general tight up or down for stocks 70% of the
112 |111 |00:19:18,240 ~-~-> 00:19:26,010 |time, stocks will move in the general direction, the market trend, but the leaders will give you telltale signs before they actually start the tournament
113 |112 |00:19:26,100 ~-~-> 00:19:33,180 |up and lead the market higher. Okay. And we'll talk specifically about there how we can go into it, see when it happens before it happens and take advantage of
114 |113 |00:19:33,180 ~-~-> 00:19:45,450 |that. But for this teaching, I'm going to suggest mostly just index stocks. So how do we do it? I've already jawbones you about 20 minutes into this already in
115 |114 |00:19:45,450 ~-~-> 00:19:51,900 |you're probably already frothing at the mouth, like how do we get in here and do this what are we doing? And what do we look for? Well, before we get into that,
116 |115 |00:19:51,930 ~-~-> 00:20:09,390 |I want to give credit where credit's due now, most of My teaching I always go into giving credit to where I have gleaned the source material for all the
117 |116 |00:20:09,390 ~-~-> 00:20:19,980 |things that I've done either I've created it on my own or authored the process, and I've given myself credit for it. Okay in other places, but for the stock
118 |117 |00:20:20,040 ~-~-> 00:20:29,700 |stuff, none of this is absolutely a tribute to me, except for hard work. And just putting two things together. Nothing out there puts these two components
119 |118 |00:20:29,700 ~-~-> 00:20:39,480 |together. But me But originally, everything started with this book right here. And you probably already seen it before. I've tweeted about it before, a couple
120 |119 |00:20:39,480 ~-~-> 00:20:47,010 |years ago actually mentioned it when I was asked about stocks I said, Read this book because I believe this is the best one out there in terms of looking at
121 |120 |00:20:47,940 ~-~-> 00:20:59,400 |stock selecting it, I don't agree with the technical side of what he talks about. But O'Neal has a really good and I'm going to say here fundamental, okay
122 |121 |00:20:59,430 ~-~-> 00:21:12,900 |approach to selecting winning stocks. He done a really good job of ferreting out what matters most for the stock, you build a building up an uptrend and
123 |122 |00:21:12,900 ~-~-> 00:21:14,310 |continuation going higher.
124 |123 |00:21:15,930 ~-~-> 00:21:25,830 |The cut patterns and all the things he teaches, okay, I don't like that stuff. Because if you apply what I've already taught in other teaching series, as it
125 |124 |00:21:25,830 ~-~-> 00:21:33,360 |relates to technicals, all that stuff applies to stocks, especially as it relates to institutional order flow. If you look at order blocks, and you
126 |125 |00:21:33,390 ~-~-> 00:21:41,940 |liquidity pools, that's the same stuff that goes on in the stock market. Okay, but we're gonna give you a really specific generic pattern that you can look for
127 |126 |00:21:41,940 ~-~-> 00:21:52,230 |that repeats itself every single year. And I don't think there's anything else out there that has such a large seasonal impact, then that of the fall low
128 |127 |00:21:52,530 ~-~-> 00:22:04,230 |forming in the United States stock market is such a behemoth of a seasonal tendency, it's it just begs to be exploited. And most people just aren't aware
129 |128 |00:22:04,230 ~-~-> 00:22:16,740 |of it. In fact, they are generally afraid of that time of year because they all think of the stock market crashes, 1987, October 19 1929, you know, all the big
130 |129 |00:22:16,740 ~-~-> 00:22:25,950 |crashes are going into that time of year, they're dropping the prices down into that time of year for the big bargains to come in and scoop up and buy them at a
131 |130 |00:22:25,950 ~-~-> 00:22:36,840 |low price. And attributing the fundamental side of stock investing to that which of my original mentor, Larry Williams, his book, The Secret of selecting stocks
132 |131 |00:22:36,840 ~-~-> 00:22:47,940 |for immediate and substantial gains, I think should be in everyone's library. Even if you don't trade stocks. He is the foundation to my teaching on SMT. And
133 |132 |00:22:47,940 ~-~-> 00:22:56,790 |it is one of the coolest ways to internalize what goes on as it relates to accumulation and distribution in price action. And it's not limited to stocks.
134 |133 |00:22:56,880 ~-~-> 00:23:06,330 |Okay. So if you're familiar with my foreign exchange stuff as it relates to USD X, s&t divergence, or correlated pair to s&p divergence, it all hinges on the
135 |134 |00:23:06,330 ~-~-> 00:23:15,600 |concept that I gleaned from Larry Williams book here. He doesn't call it SMT. He doesn't call anything like that. But the idea behind it resonated with me,
136 |135 |00:23:15,600 ~-~-> 00:23:25,080 |because it really made me understand Dow Theory. Everyone knows Dow Theory, everyone knows the principle that the averages must, you know, confirm one
137 |136 |00:23:25,080 ~-~-> 00:23:33,060 |another. And if they don't, it's waning strength, okay, and expect some kind of a, you know, a tournament, but really, nobody really talks about it when you're
138 |137 |00:23:33,060 ~-~-> 00:23:43,710 |trading. Nobody talks about it in their teachings. Nobody, really nobody uses it. Even O'Neill doesn't even do that. And I think if he did, the book would be
139 |138 |00:23:43,710 ~-~-> 00:23:52,710 |that much better. I mean, it would be, in my opinion, the book, if it employed, if it implied, strong technicals. Okay, in relationship to the fundamental stuff
140 |139 |00:23:52,710 ~-~-> 00:24:01,710 |that he promotes in his book. I believe the book could sell for $200 in Via value. I mean, it really is. I mean, there's so much stuff in that that's
141 |140 |00:24:01,710 ~-~-> 00:24:08,430 |useful, but it's gonna take some time to digest it. And it's gonna take a little bit of work to go through the Investor's Business Daily newspaper to find the
142 |141 |00:24:08,430 ~-~-> 00:24:16,440 |type of stocks, they're, you know, they're lining up with that, and that are going against the overall market trend if the market trend is, you know,
143 |142 |00:24:16,950 ~-~-> 00:24:24,180 |moderately bullish, but the stocks are just shown superior strength. That means they're really being accumulated on an institutional level, and they're just
144 |143 |00:24:24,180 ~-~-> 00:24:34,320 |going to take off. And what does that look like? Think of Netflix at the time of this recording? We're in September 2015. Look at where Netflix has gone. Look at
145 |144 |00:24:34,320 ~-~-> 00:24:47,100 |where Amazon has gone. Look at where Apple has gone. Okay, these stocks are high fliers, and all of those things are rooted in what would have been seen through
146 |145 |00:24:47,610 ~-~-> 00:24:57,000 |this book, How to make money in stocks. They had all the same fingerprints at the beginning. Okay, and it fits all of the the criteria that he puts together
147 |146 |00:24:57,240 ~-~-> 00:25:07,290 |for investing in new America. So What am I saying in here? I'm crediting these two individuals, Larry Williams is my original mentor and William J. O'Neal. For
148 |147 |00:25:07,290 ~-~-> 00:25:14,580 |stocks, I blended the technical stuff from the secrets of selecting stocks immediate substantial gains from Larry Williams with how to make money in
149 |148 |00:25:14,580 ~-~-> 00:25:22,980 |stocks, fundamental stuff. Together, I blended them together. So I'm basically when I'm not trading or when I'm, I don't trade stocks anymore. So just for
150 |149 |00:25:22,980 ~-~-> 00:25:33,750 |disclosures, like I don't trade stocks, shares, when I do trade stocks, I do trade the options. But when I incorporate these two things, I incorporate the
151 |150 |00:25:33,750 ~-~-> 00:25:44,460 |fundamental stuff that comes my way of investors business daily is creator, William J. O'Neal, and the technical aspects of trading and timing and selecting
152 |151 |00:25:45,000 ~-~-> 00:25:51,990 |with the book presented by Larry Williams. Now, by my, to my knowledge, no one else on
153 |152 |00:25:53,280 ~-~-> 00:25:59,910 |Earth really has done these two things. Okay. Now, I'm sure someone's going to hear this video. So I've been doing it for 20 years, and I really don't care.
154 |153 |00:26:00,030 ~-~-> 00:26:09,330 |I'm not trying to take credit for it. I'm just saying that these are two wonderful resources that I can't claim authorship of, I can't claim any kind of
155 |154 |00:26:09,960 ~-~-> 00:26:19,200 |recognition of, I just believe that this is what the winning system is, you're blending fundamental stuff. And I believe this is the only asset class that
156 |155 |00:26:19,200 ~-~-> 00:26:27,210 |really makes a difference. When it relates to fundamentals, you need to have a fundamental understanding of what that what the stock is done, what it's most
157 |156 |00:26:27,210 ~-~-> 00:26:38,550 |likely going to do, and what the markets doing. And blend that with a very strong technical approach, then you have a very strong, very strong base of, you
158 |157 |00:26:38,550 ~-~-> 00:26:48,690 |know, profitability, likely profitability, and put it that way. And if you're going to trade outside of index stocks, you can still do that, incorporating
159 |158 |00:26:48,690 ~-~-> 00:27:01,680 |these two books as your understanding. And if you take the same understanding here and apply it to the index stocks that make up the Dow 30, the s&p 500, and
160 |159 |00:27:01,890 ~-~-> 00:27:10,110 |NASDAQ 100, stocks, go through those same indices, okay, and pick out the ones that have the strongest fundamentals and tied up with the strongest technicals.
161 |160 |00:27:10,110 ~-~-> 00:27:20,790 |As we're going to teach in this teaching, you will have the absolute barnburner, of stocks that's going to propel those indices higher. And you'll see that
162 |161 |00:27:20,790 ~-~-> 00:27:29,970 |they're the ones that are dragging the indicee higher, even though most of the morning we'll be going up. There will be some of them, okay, in these indices,
163 |162 |00:27:29,970 ~-~-> 00:27:38,160 |especially for the Dow 30 S, we'll go through each individual stock out of this dow 30 list, at the time of this recording, you know all the stocks that make up
164 |163 |00:27:38,160 ~-~-> 00:27:45,570 |that composite index for Dow 30. We're going to go through each individual daily chart and show you what it looks like. And you'll get to see the results of what
165 |164 |00:27:45,570 ~-~-> 00:27:50,520 |has happened since 2014. Follow
166 |165 |00:27:57,359 ~-~-> 00:28:08,999 |all right, seasonal tendencies. Look at the stock market has one of the strongest seasonal tendencies out there. And if you understand seasonal
167 |166 |00:28:08,999 ~-~-> 00:28:18,239 |tendencies, they are not a panacea. This means that they're not a be all end all. It doesn't happen every single time. Okay. But by far and large, if you
168 |167 |00:28:18,239 ~-~-> 00:28:30,839 |look at the the fall months in the New York Stock Exchange, okay, the generally make a load that's very tradable. And that's one of the coolest things about
169 |168 |00:28:30,839 ~-~-> 00:28:40,589 |stocks. They're predictable in that sense, because you know, you don't want to do any buying in stocks until around the end of the year, going into the fall
170 |169 |00:28:40,589 ~-~-> 00:28:50,969 |months right before Thanksgiving and Christmas, okay. And our country, the stock market is really predisposed to go higher, because the idea is buy stocks hold,
171 |170 |00:28:51,269 ~-~-> 00:29:00,959 |buy stocks hold. And that mentality brings in a new batch of buyers all the time. When we go to school, we are taught to be good employees, we're taught to
172 |171 |00:29:00,959 ~-~-> 00:29:09,479 |be good workers, go to school, go to college, get a good degree to be a good employee to be a good worker be a productive part of society. And they should be
173 |172 |00:29:09,479 ~-~-> 00:29:20,159 |teaching us really to be good employers, good company owners, strong company starters, company purchasers and managers. Okay, that, you know, we are we
174 |173 |00:29:20,159 ~-~-> 00:29:29,159 |should be taught to be entrepreneurial, okay, but we're not. We're taught to be slaves to the system itself, that creates wealth for the ones to have this
175 |174 |00:29:29,159 ~-~-> 00:29:39,569 |understanding. Okay. So you have to understand that this stuff is so cyclical, because it's their game, it's their system, okay. And, and America really runs
176 |175 |00:29:39,689 ~-~-> 00:29:52,949 |on this whole cycle. The goods that we are trained to buy for Christmas, okay, Christmas absolutely has nothing to do with you, being holly jolly, okay. It's
177 |176 |00:29:52,949 ~-~-> 00:30:01,739 |all about commerce. Okay, go out there and buy something, spend lots of money because this is what means happiness. You Your family and friends and spouses
178 |177 |00:30:01,739 ~-~-> 00:30:11,009 |cannot appreciate you, okay? Unless you go out and go into great debt, and then pay interest on that debt because you got to buy something you can't afford and
179 |178 |00:30:11,039 ~-~-> 00:30:22,499 |use credit cards. Okay? So this whole mindset has created this atmosphere at the end of the year, we all have to take our money and spend lots of it to
180 |179 |00:30:22,499 ~-~-> 00:30:33,179 |celebrate. What what are we celebrating? Think about what you're celebrating. You're you're trying to equate your family's happiness, okay, and appreciation
181 |180 |00:30:33,179 ~-~-> 00:30:42,389 |for one another with buying material things and lots of them and whoever's got this shiny, nice, your nice thing. They're the ones that you're apparently love
182 |181 |00:30:42,389 ~-~-> 00:30:52,919 |more. Okay, we've changed our perspective on what holidays really should be. Okay, love and family and, and doing well, for others. This is such a commercial
183 |182 |00:30:52,919 ~-~-> 00:31:03,059 |time of year. Think about it, we got Halloween in the States, okay, dress up in costumes that are overinflated in prices. Go around collecting candy from people
184 |183 |00:31:03,059 ~-~-> 00:31:12,419 |we don't know or trust or shouldn't trust. Okay, knock on people's stranger's doors expecting getting candy and then eat that candy cost money is very it's a
185 |184 |00:31:12,419 ~-~-> 00:31:19,679 |high it's sort of the premium at that time of year. Okay? Well, you're going into this time when there's all this merchandise becoming available and sold.
186 |185 |00:31:19,949 ~-~-> 00:31:31,919 |And you have to buy gifts for Christmas, you got to do it. So this turns the the the economy and there's this big rush for earnings, okay to come into the stock
187 |186 |00:31:31,919 ~-~-> 00:31:39,629 |market because of everyone selling something around the holidays. And that's why we have the seasonal low Plus, there's this rush to get money to work because
188 |187 |00:31:39,629 ~-~-> 00:31:47,639 |they have to show it on their books being utilized. Okay, so that's the reason why you have this fundamental low that takes place every single year, in
189 |188 |00:31:47,669 ~-~-> 00:31:49,049 |September, October timeframe.
190 |189 |00:31:55,410 ~-~-> 00:32:04,380 |Now the stock market when we move into that September, October time frame, okay, what generally happens is, if you compare the major market indices, that means
191 |190 |00:32:04,380 ~-~-> 00:32:16,050 |the Dow, the s&p 500, and the NASDAQ, if you combine if you like overlay them on a chart, or if you can look at them individually at the same time comparing
192 |191 |00:32:16,050 ~-~-> 00:32:27,810 |lows. Okay, for instance, say the top line is the Dow and say the middle one is the NASDAQ, the blue one and say the red one, or maroon one at the bottom is the
193 |192 |00:32:27,810 ~-~-> 00:32:37,500 |s&p 500. It doesn't make a difference which one we're classifying here, it only takes one of them to fail to make a lower low between September and October, in
194 |193 |00:32:37,500 ~-~-> 00:32:46,860 |that it's confirming the low is in place. Okay, so now what we've done is we've already arrived at the time of year, when the market should make a low. And
195 |194 |00:32:46,860 ~-~-> 00:32:56,220 |that's between September and October time period. Okay. The low will form and you know, it's in place when you see the averages, collectively moving lower,
196 |195 |00:32:56,220 ~-~-> 00:33:05,760 |but one of them won't go any lower. And what we're doing is we're applying Dow theory to the market indices, and we're arriving at what I call a market index
197 |196 |00:33:05,760 ~-~-> 00:33:16,260 |divergence. Okay? When this happens, this indicates that there's such an influx of buying that one of those indices won't go lower, because there's such a huge
198 |197 |00:33:16,770 ~-~-> 00:33:27,780 |increase of buying the stocks in that NSC are being accumulates in such a large degree, they aren't being permitted to drop lower because of demand factors that
199 |198 |00:33:27,780 ~-~-> 00:33:38,640 |create an ability to go lower for pricing. That's what causes that failure to go lower in indicee. Again, you might get two of them do it, you might only get
200 |199 |00:33:38,640 ~-~-> 00:33:46,890 |one, but you only look for the crack between all three because the in trends, they'll move together making lower lows and higher highs and lower lows and
201 |200 |00:33:46,890 ~-~-> 00:33:55,710 |higher highs depending on where the direction is. They will confirm one hour but in September October time frame, you're only looking for buying opportunities
202 |201 |00:33:55,710 ~-~-> 00:34:04,980 |for stocks. That means you're only going to be looking at the lows between three averages. The Dow the s&p and the NASDAQ. When one of those averages fails to
203 |202 |00:34:04,980 ~-~-> 00:34:16,260 |make a lower low when the other two or one does, you know the lows in place. And you're looking at the market starting in mid September on a daily basis, you're
204 |203 |00:34:16,260 ~-~-> 00:34:24,870 |expecting price to drop lower, lower, lower lower going into October, okay. And eventually when you see one of these averages not make that lower low the lows
205 |204 |00:34:24,870 ~-~-> 00:34:37,410 |in place. What does that look like? Well, let's go back to 2014. And you can see there's three charts here and I'm using the four hour chart just to illustrate
206 |205 |00:34:37,440 ~-~-> 00:34:49,440 |with clarity what it looks like. And on the left, we have the Dow Jones making a lower low. The s&p 500 is in the middle it made a higher low. Look at the NASDAQ
207 |206 |00:34:49,440 ~-~-> 00:34:59,220 |on the right made a higher low. When you see that take place. It's already priced in to the marketplace the low is in the markets going to move higher when
208 |207 |00:34:59,220 ~-~-> 00:35:11,490 |this happens. Since this very thing occurs, you go into the stocks that make up the indices, okay? In other words, the Dow 32, SP 500, the NASDAQ 100, go
209 |208 |00:35:11,490 ~-~-> 00:35:16,740 |through all of them if you only want to just have a small universe, and you don't want to be inundated with this, and maybe you don't want to be a big time
210 |209 |00:35:16,740 ~-~-> 00:35:23,760 |stock trader, just use the Dow 30. Because that's all we're going to use in this example here. But the same thing would be applied for the s&p 500 stocks, and
211 |210 |00:35:23,760 ~-~-> 00:35:36,690 |the Nasdaq 100 If you want to go through each individual one, but this is the buy sit on that takes place in Smart Money accumulation for stocks. Now, once
212 |211 |00:35:36,690 ~-~-> 00:35:46,080 |this occurs, you move over to the individual stocks in the indices. Okay. And again, we're looking to dow 30, for this example. So what we'd be looking for is
213 |212 |00:35:46,080 ~-~-> 00:35:55,320 |yes, the indices have made lower lows, okay, as indicated by the line chart here, okay, and these are graphic depictions, but they're simplifying the
214 |213 |00:35:55,320 ~-~-> 00:36:06,270 |premise, the black line above indicates what the stock would look like, okay, it made a higher low, when the indices have moved lower into October, one of them
215 |214 |00:36:06,270 ~-~-> 00:36:15,150 |will diverge. Well, the same thing is going to happen in indicee. By looking at every individual stock, you only want to be focusing on the stocks that don't
216 |215 |00:36:15,150 ~-~-> 00:36:24,390 |make a lower low. When that happens, you have ferreted out all of the stocks that are technically poised to go up, then you break down those stocks on a
217 |216 |00:36:24,390 ~-~-> 00:36:32,910 |fundamental level, are they making money quarter before the present quarter now? What's What was the earnings before the quarter were in? And what was the
218 |217 |00:36:32,910 ~-~-> 00:36:38,670 |earnings the year before for the same quarter? If it's showing a profit? That's the one you buy? Okay?
219 |218 |00:36:48,810 ~-~-> 00:36:58,530 |Okay, folks, we are looking at the first in the list of the Dow Jones 30 stocks that make up the composite index. And we're gonna be working in alphabetical
220 |219 |00:36:58,530 ~-~-> 00:37:09,540 |order. And the first in our list is American Express. Now we're gonna be focusing on, I'm going to highlight the area, which we hunt, the seasonal low to
221 |220 |00:37:09,540 ~-~-> 00:37:21,030 |form, as we discussed earlier in this video, the idea is you want to be seeing stocks that are bucking the down move that's being seen in the indices. Now, the
222 |221 |00:37:21,030 ~-~-> 00:37:33,750 |chart you're seeing here are provided by market Smith, which is a company in line with Investor's Business Daily. It's a little bit pricey, but you don't
223 |222 |00:37:33,750 ~-~-> 00:37:46,440 |need to have market Smith to see this, I'm just using it because an application I have, it will help me show some other salient points. But as the pattern for
224 |223 |00:37:46,440 ~-~-> 00:37:56,460 |accumulation unfolds, going into the fall months, September, October time, for tiered, the, the idea is you want to be looking for stocks that failed to make a
225 |224 |00:37:56,460 ~-~-> 00:38:08,550 |lower low. And again, we're going to highlight this area here. And this line that you're seeing here is plotting the s&p 500 index. Okay, and as you can see,
226 |225 |00:38:08,970 ~-~-> 00:38:11,400 |the low being made in
227 |226 |00:38:17,430 ~-~-> 00:38:29,610 |October, mid October, come compared to the low made in August, okay, so there's going to be a summer low. And then you're going to see a low formed in the fall,
228 |227 |00:38:29,640 ~-~-> 00:38:40,530 |typically around October time period, and the October low in relationship to the summer, Whoa, now that summer, low is whatever low is formed on the August
229 |228 |00:38:40,650 ~-~-> 00:38:51,420 |month, okay. And sometimes it can move in and out low early, it could be a low meet in July, you're very, very late July, and very, very early September. So
230 |229 |00:38:51,420 ~-~-> 00:39:01,770 |there's there's going to be a little bit of a range that you have to have in terms of time. So if you would just bracket out really the the last two weeks of
231 |230 |00:39:01,770 ~-~-> 00:39:13,830 |July to October. In that time period, what you're going to be looking at on a daily chart is the relative lows created in the indices, for instance, the Dow
232 |231 |00:39:13,830 ~-~-> 00:39:25,200 |Jones, the NASDAQ, and the s&p 500. Now in this chart, we're only plotting the s&p 500 just to illustrate the lower low being formed in the fall. Okay, we're
233 |232 |00:39:25,200 ~-~-> 00:39:38,880 |gonna be looking at examples that was formed in December. I'm sorry, October of 2014. And I want you to contrast the lower low in relationship to the low seen
234 |233 |00:39:38,880 ~-~-> 00:39:51,690 |on the indicee here, versus here. So we went lower here. Okay, lower here. And we were here in time is being measured August, September, October, November,
235 |234 |00:39:51,720 ~-~-> 00:40:04,230 |December and January starting beginning of 2015. Okay. And in an example, just to illustrate what we're talking About here, the low for the stock here is
236 |235 |00:40:04,440 ~-~-> 00:40:17,610 |directly related to the low in the s&p 500 here, okay. And the low in the SP 500 is seen with the lower low in the stock. So my question is this low, was
237 |236 |00:40:17,610 ~-~-> 00:40:30,960 |breached and went lower here. So is this stock under heavy accumulation? No, and the reason why the low was violated, if the low made in summer is not violated
238 |237 |00:40:31,080 ~-~-> 00:40:41,940 |when the indices are making a lower low and a time period when we expect to see stocks form its seasonal low. When it fails to make that lower low, that means
239 |238 |00:40:41,970 ~-~-> 00:40:52,380 |that it's being aggressively purchased in bought. And because of that very nature. We don't expect that stock to underperform the market, we actually
240 |239 |00:40:52,470 ~-~-> 00:41:03,900 |expect it to outperform the market. Okay. And the only times that we're really interested in trading stocks as a stock swing trader, okay, and we're going to
241 |240 |00:41:03,900 ~-~-> 00:41:15,900 |use it as an investment means if you are operating a self directed IRA, in the States, and you have that luxury, you are going to be surprised that you'll need
242 |241 |00:41:15,900 ~-~-> 00:41:25,020 |to be in the market about six months every year. Which is amazing, because when you contrast that with the ideas that's perpetuated and taught in investment
243 |242 |00:41:25,560 ~-~-> 00:41:33,870 |industry, they tell us that we got to keep putting our money on a weekly basis, piling it into an IRA or retirement account, and letting some Joe Schmo
244 |243 |00:41:33,900 ~-~-> 00:41:42,450 |somewhere in your country or wherever he's at where she's at. And we're expecting them to actually outperform the marketplace and have our best
245 |244 |00:41:42,450 ~-~-> 00:41:55,140 |interests in mind. And that's not always the case. So what will happen is, you'll move into a management role of your own funds, and no one's gonna watch
246 |245 |00:41:55,170 ~-~-> 00:42:08,010 |or manage your money better than yourself. So if we note the highest probable seasonal tendency for stocks to move is from a September October low to April
247 |246 |00:42:08,010 ~-~-> 00:42:22,020 |May high. Okay, there is that bracket of time where we have a very large odds in our favor that we're going to see stocks appreciate or move higher. The problem
248 |247 |00:42:22,020 ~-~-> 00:42:32,700 |is you got almost 10,000 stocks out there to choose from, okay in whether it be in NYC stock NASDAQ stock, you Amex stock, you have all these different areas to
249 |248 |00:42:32,700 ~-~-> 00:42:43,830 |choose a stock from which one do you pick? And how do you keep up with all the data? Well, one of the ideas I got from like Williams was, I don't really need
250 |249 |00:42:43,830 ~-~-> 00:42:54,300 |to be in the stock market all the time. And as we indicated earlier with his book, that really supercharged my ideas as it relates to looking at the stock
251 |250 |00:42:54,300 ~-~-> 00:42:57,660 |market. And then obviously, later on, he released a teaching.
252 |251 |00:42:59,850 ~-~-> 00:43:12,120 |And he published it in a traders magazine. And it's the darlings of the Dow. And while I'm not going to teach that here, but I will make it available in PDF
253 |252 |00:43:12,120 ~-~-> 00:43:23,220 |format underneath the link for this video. Read that because it really is an additional, you know, secondary approach to Trading Stocks. I think it's a good
254 |253 |00:43:23,220 ~-~-> 00:43:31,890 |one. It's very similar to what we're teaching here. But I was using this before he released that. And it's all really just based on IBD Investor's Business
255 |254 |00:43:31,890 ~-~-> 00:43:44,220 |Daily stuff, Dow Theory and the actual time timing signal that he gave in his book, as we mentioned earlier in this video. So by blending all those things,
256 |255 |00:43:44,250 ~-~-> 00:43:54,540 |and just really just focusing in on price action, in addition to all this other stuff, it just makes it a lot easier in employing options where it's variable
257 |256 |00:43:54,570 ~-~-> 00:44:02,310 |where it's available, rather. So on the first of our list of 30, we can knock out this one, okay. And what you're going to do is you're going a little notepad
258 |257 |00:44:02,730 ~-~-> 00:44:11,460 |as you go through your stocks in the fall, okay, we start much monitoring it around mid September, and on a daily basis, all you're going to do is breeze
259 |258 |00:44:11,460 ~-~-> 00:44:19,500 |through these 30 stocks. Now, if you have a lot more time or a lot more ambition, you can do this through the s&p 500 stocks. Yes, it's 500 issues. Yes,
260 |259 |00:44:19,500 ~-~-> 00:44:27,450 |it's 500 stocks. No, it doesn't take long, you can go through it in an hour comfortably with a cup of coffee, croissant donut, if you want to be unhealthy.
261 |260 |00:44:27,600 ~-~-> 00:44:34,410 |And just simply just take your time tell your wife go shopping while you give to outside play ball for a little while and just go through your your your chart,
262 |261 |00:44:34,440 ~-~-> 00:44:42,600 |it doesn't take long. And obviously the NASDAQ only has 100 stocks that make up its composite. So really, if you want to be aggressive 630 stocks can be done in
263 |262 |00:44:42,600 ~-~-> 00:44:52,140 |an hour. If you really start getting systematic about looking for it. It's only a simple pattern around the specific time of year. So again, American Express,
264 |263 |00:44:52,170 ~-~-> 00:45:00,540 |we can take this off our list or not included in our list if you will, okay because we were posting a lower low. So in October, it was great Looking down
265 |264 |00:45:00,570 ~-~-> 00:45:11,970 |just like the index did so, seasonally, we're entering a time when it should rally. But because it went lower with the, with relationship to the low, made in
266 |265 |00:45:12,990 ~-~-> 00:45:21,480 |summertime on the s&p, we went lower here showing weakness in the overall market. Yes, but we also saw underlying weakness in the stock as well even
267 |266 |00:45:21,480 ~-~-> 00:45:28,800 |though it did have a nice little reaction in here. This is not a stock you want to be holding on to you don't want to buy into it. Okay, you can see it actually
268 |267 |00:45:28,800 ~-~-> 00:45:45,450 |taught before the the crossing of the new year, and then went down lower, okay, it was aggressively destroyed. The next stock in our list is apple. Okay, and
269 |268 |00:45:45,450 ~-~-> 00:45:59,310 |you can see here, the low in relationship to the low here on the s&p, okay, we have that low here. And then we have the low in the s&p again lower in October,
270 |269 |00:45:59,610 ~-~-> 00:46:11,160 |but we have a higher low in the the apple. Okay, so Apple stock in here fits the criteria, it meets all of the technical parameters, you would be expected to see
271 |270 |00:46:11,160 ~-~-> 00:46:21,450 |in buying an accumulated stock. Okay, plus is really nice, it's already an existing uptrend, which is excellent. And also, if you take a look down here,
272 |271 |00:46:21,480 ~-~-> 00:46:34,230 |these are just sales, fundamental numbers, basically showing you what their sales were for the quarter. Okay, this was the quarter ending September 14, and
273 |272 |00:46:35,340 ~-~-> 00:46:46,110 |comparing previous year's quarters, you can see they have been beating the numbers 20% or more is excellent. And we also saw a 48% increase as well on
274 |273 |00:46:47,250 ~-~-> 00:46:58,110 |their earnings and their quarterly sales. You see, they continue to do that as well moving into the beginning of 2015. But nonetheless, seasonally, we're,
275 |274 |00:46:58,320 ~-~-> 00:47:09,870 |we're we're looking for a move to go into the new year, at least trying to reach for the first of February, that's the beginning of our to take profit time. And
276 |275 |00:47:09,870 ~-~-> 00:47:19,260 |we're going to hold to April, maybe the first week of April at the most. But then we want to try to get out because the seasonal hide at posts in the spring
277 |276 |00:47:19,710 ~-~-> 00:47:30,390 |will very much. So provide pressure for equities are profit taking and either go into consolidation, or, you know giving some of it back and it's not any
278 |277 |00:47:32,070 ~-~-> 00:47:49,050 |anyone's go, I hope to give up good profits. Okay, so looking at this stock we saw a low not that you would ever get the low. But the low $95.18 A share up to
279 |278 |00:47:49,740 ~-~-> 00:47:54,600 |in April. We had here April,
280 |279 |00:47:55,560 ~-~-> 00:48:06,120 |the first week of April to high comes in at 128 12. Now obviously we had some stock splits, it actually was a different stock stock price at the time. But we
281 |280 |00:48:06,390 ~-~-> 00:48:20,220 |did see the appreciation and the less, the high came in on February 24 in the form of $133.60. Now again, this is adjusted after the split. But nonetheless,
282 |281 |00:48:20,430 ~-~-> 00:48:33,330 |you can see that we were very, very much so higher from the time Louis looking to be going long. So as our dow 30 stocks, we have our first stock back here
283 |282 |00:48:33,330 ~-~-> 00:48:39,750 |again, we're only focusing here Yes, we had the benefit of hindsight here. But we're looking for the accumulation pattern that was revealed earlier in this
284 |283 |00:48:39,750 ~-~-> 00:48:55,230 |video. And this is what you would expect to see the next stock in our list of 30 Ba or Boeing Corporation. And we see this the lower low in the s&p and we see
285 |284 |00:48:55,230 ~-~-> 00:49:03,090 |the lower low in the stock. So right away, we don't care what their fundamentals are. We don't care about the numbers behind any any any sales or anything. We
286 |285 |00:49:03,090 ~-~-> 00:49:12,450 |just are ferreting out the stocks that are not going lower. Now, again, I'm gonna reiterate reason why this is strong is because the insiders that know that
287 |286 |00:49:12,450 ~-~-> 00:49:23,220 |they're going to beat numbers that they know that they're killing it on a on income basis. That is what we're seeing in the stocks because greed is what it
288 |287 |00:49:23,220 ~-~-> 00:49:30,450 |is okay. And folks that know about it are going to be accumulating the stocks they're gonna be buying more of it, okay, and they're not going to see their
289 |288 |00:49:30,450 ~-~-> 00:49:38,820 |stock dropped lower before earnings before the seasonal low that forms because they're going to be aggressively accumulated by those individuals that know
290 |289 |00:49:38,970 ~-~-> 00:49:51,660 |there's going to be extrapolated moving upside even. You can see that they had a little bit of a slip in their earnings and their results year over year for that
291 |290 |00:49:51,660 ~-~-> 00:50:03,420 |quarter. We did have 20% over here as well. Going into it which is nice. But even though we had you know nice little rally up. Again, we're not looking for
292 |291 |00:50:03,420 ~-~-> 00:50:13,050 |these stocks simply because it made to lower low that nixes. This now Boeing did have an opportunity to do very well. But this is one of those opportunities that
293 |292 |00:50:13,050 ~-~-> 00:50:21,390 |you would have missed based on the rolls. And you're going to have to accept that. Okay, because there's no panaceas. Next stock in our list of 30. And
294 |293 |00:50:21,390 ~-~-> 00:50:33,210 |again, we only have one that meets the criteria thus far, is caterpillar. Again, right away, we made the lower low in relationship to a lower low and s&p, again,
295 |294 |00:50:33,210 ~-~-> 00:50:41,310 |we're looking for stocks that fail to make a lower low. So this one's immediately removed from the the watch list or buy list. Next on our list is
296 |295 |00:50:41,340 ~-~-> 00:50:53,160 |Cisco Systems. Okay, again, right away, we did lower low, just like the general market did. So even though we did see appreciation, this is another stock that
297 |296 |00:50:53,160 ~-~-> 00:51:09,060 |we would not have been interested in buying. Next stock in our list is Chevron. Again, right away, lower low, not interested. And look what happened. I mean,
298 |297 |00:51:09,060 ~-~-> 00:51:19,410 |it's indicative of what we're talking about, it's a stock that has not shown any heavy accumulation, so therefore, it was distributed. Next stock and our symbol.
299 |298 |00:51:22,260 ~-~-> 00:51:32,400 |Now we have another stock here that did make a higher high, I'm sorry, higher, well, okay, here's the low in relationship to the s&p right here. Okay, the low
300 |299 |00:51:32,400 ~-~-> 00:51:44,160 |here, then we have the lower low in the s&p. But we had the higher low in relationship to the stock price. Okay, the low comes in at 6370. And the low
301 |300 |00:51:44,160 ~-~-> 00:52:02,280 |comes in at 6455. That's all you need, it's been accumulated. Okay, so buying at 60, we'll get the high end give the worst case scenario being long at 6674. At
302 |301 |00:52:02,280 ~-~-> 00:52:12,510 |65 is your exit. Now again, with this system, all we're looking for is about a $5 or more move in the shares. Okay, that's, that's, that's all you need. And
303 |302 |00:52:12,510 ~-~-> 00:52:18,840 |you'll see at the end of this video, why it's important because you don't need much in terms of price movement, you just need that to provide you the
304 |303 |00:52:18,840 ~-~-> 00:52:34,440 |percentage returns on your equity. Okay, next stock symbol. So now we have two on our list. Diddy and AAPL, Apple and Chevy, I'm sorry, DuPont. So Apple and
305 |304 |00:52:34,440 ~-~-> 00:52:44,790 |DuPont are the only ones that have made the grade so far for our stock selection, X o m,
306 |305 |00:52:46,170 ~-~-> 00:52:54,510 |is our next are Exxon Mobil and you can see lower low in s&p lower low and the stock we are not interested in that did not have been accumulated aggressively
307 |306 |00:52:54,510 ~-~-> 00:53:08,670 |and you can see the result of it. Okay, heavy distribution. Next stock in our symbol list is G. Lower low, we don't see that we don't see this as a
308 |307 |00:53:08,670 ~-~-> 00:53:17,010 |accumulation. We don't see that as smart money buying. Even though we did range and then spike up a little bit in here. It only moved about $2 from the actual
309 |308 |00:53:17,010 ~-~-> 00:53:26,520 |low that was formed here. And even then it's not big, it's no big deal GE to me is a dead stock I would never put money into it anyway. The next stock and our
310 |309 |00:53:26,520 ~-~-> 00:53:42,840 |symbol is HD or Home Depot. Excellent opportunity as well here we had an existing uptrend. Okay, we had the low in the s&p respective, this low here, the
311 |310 |00:53:42,840 ~-~-> 00:53:55,950 |lower low in the SP here, and we have the higher low what you expect to see for accumulation purposes or buying. We moved from a low of 8662 on this one at 635.
312 |311 |00:53:56,460 ~-~-> 00:54:11,220 |Moving up into first week of April, if I can get the show up here, first week of April shows a high of $114 a share the actual high going into that take profit
313 |312 |00:54:11,220 ~-~-> 00:54:24,690 |time period comes in at 117 99 was on an $18 a share. So very very handsome run up just the classic scenario that you would see unfold in this stock selection
314 |313 |00:54:24,720 ~-~-> 00:54:40,380 |method of mine. And so now we have three in our list, Home Depot, DuPont and apple. The next stock symbol in our list is IBM. Okay, we have IBM making a
315 |314 |00:54:40,380 ~-~-> 00:54:52,140 |lower low just like the indices and no real accumulation whatsoever and pretty much it's been dead money since then. Intel Corporation IMTC is next in our
316 |315 |00:54:52,140 ~-~-> 00:55:02,130 |symbol list of the Dow 30 stocks right away you'll see to do is no accumulation here at all made a lower low just like the general market data Okay, and you can
317 |316 |00:55:02,130 ~-~-> 00:55:11,970 |see it's pretty much dead money again, Johnson and Johnson JNJ is our next symbol in our list. And again, same phenomenon is taking place here, we have a
318 |317 |00:55:11,970 ~-~-> 00:55:20,760 |lower low, just like the general market is indicating up here. And even though we had a nice little pop in here was short lived, and it's been dead money
319 |318 |00:55:20,760 ~-~-> 00:55:33,690 |sense. Next in our list is Coca Cola, I can tell you that's a dead stock, I would never own Coca Cola. You could see it's lower low. It didn't make a higher
320 |319 |00:55:33,690 ~-~-> 00:55:42,270 |high here, but this is a stock I just never ever, ever put money into. It's just not a stock that anyone in my opinion should put money in. But we have to
321 |320 |00:55:42,270 ~-~-> 00:55:53,550 |include it because of completeness sake, because we're looking at it dow 30 stocks. The next stock in our list is JP Morgan jpm. Okay, we have a lower low
322 |321 |00:55:53,550 ~-~-> 00:56:09,690 |here as well. Okay, you don't see that happening here. Any accumulation even though we do see a appreciation here. Okay. So later on, it did have a move that
323 |322 |00:56:09,690 ~-~-> 00:56:19,680 |began around the beginning of year going into February. But this is not in the scope of what we look for. So we're not going to include that here. So this is
324 |323 |00:56:19,740 ~-~-> 00:56:28,830 |another stock that does not make the grade. McDonald's is next on our list and TD right away you can see we made the lower lows, we're not interested in this
325 |324 |00:56:28,830 ~-~-> 00:56:43,770 |stock, even though it has had a little bit of a movement on the upside. But again, we're sticking to the rules. Actually, it's not that simple. 3am Okay, we
326 |325 |00:56:43,770 ~-~-> 00:56:54,180 |have the stock making a lower low, just like general market, even though it does have a nice run up. Okay, we would not have bought this because of the general
327 |326 |00:56:54,390 ~-~-> 00:57:06,180 |weakness that's shown. Okay, so there was no real heavy accumulation in here. The bottom just the stock market made a lower low and relative to earlier in the
328 |327 |00:57:06,330 ~-~-> 00:57:23,250 |summertime Lo. And you see that same thing happening here. So we did see a pop but it's been rolling over since Merck and company is next Mrk. And we have a
329 |328 |00:57:23,250 ~-~-> 00:57:29,550 |lower low in price just like we saw in the general market. So it's pretty much dead money, we don't
330 |329 |00:57:30,900 ~-~-> 00:57:42,540 |view that as a buying opportunity. Mr. Softee himself is next Microsoft. We had a lower low here as well, not by much but that's all you look for. And it did
331 |330 |00:57:42,540 ~-~-> 00:57:52,020 |have a little bit of a reaction not much about E dollars. And then pretty much stayed in arranges it's this stock is waiting for gates to sell all the shares
332 |331 |00:57:52,020 ~-~-> 00:58:04,110 |and then the company will be absorbed by someone else, I'm sure. Nike is our next issue and k e. Okay. And again, we have another opportunity where we have
333 |332 |00:58:04,110 ~-~-> 00:58:14,760 |an existing uptrend. We have the low in the s&p relative to the stock low here, the lower low and the s&p here, but look, we have the higher low in the stock
334 |333 |00:58:14,760 ~-~-> 00:58:29,910 |market, I'm sorry in the stock share price. So we are higher in an existing uptrend. So we have a low of 8383 85. And it moved up to going into April
335 |334 |00:58:29,910 ~-~-> 00:58:44,460 |$103.70. So basically $20 A share is since moved a little bit more of 217. But we've given up the ghost going into the summer months of 2015. So again, Nike
336 |335 |00:58:44,460 ~-~-> 00:58:51,450 |was another one that would have made the grade because it made a higher low and it was bucking the general market trend at a time when we seasonally expect
337 |336 |00:58:51,540 ~-~-> 00:59:11,550 |stock prices to rally as a whole. So we have now four on our list Nike, DuPont, Home Depot and Apple next on our list is Pfizer. Okay, right away, made the
338 |337 |00:59:11,550 ~-~-> 00:59:23,670 |lower low. We're not interested in this stock even though yes, it does show an appreciation rally from 2751 up to 3545 up here. Okay, so again, this is a
339 |338 |00:59:23,670 ~-~-> 00:59:36,570 |little move that you would have missed, but you got to let go. Procter and Gamble's next on our list, we have one here that has a low, higher low we would
340 |339 |00:59:36,570 ~-~-> 00:59:49,530 |buy in this one because of the technical situation is here. And we saw a move from 8157 up to 9389. Soon as you cross over in the beginning of the year, it
341 |340 |00:59:49,530 ~-~-> 01:00:00,600 |started giving up the goose and going lower. But again, we're looking for a $5 move or more and that certainly paid it out. Looking at the next day is our
342 |341 |01:00:01,230 ~-~-> 01:00:16,830 |stock list of Dow 30s is travelers TRV. Okay, we have a higher low here, just like we see a lower low formed in general market, we're seeing accumulation in
343 |342 |01:00:16,830 ~-~-> 01:00:34,830 |this stock. Okay, making the low at 9083 Going into April time period rate for you in April, it made high of 110. So we have $20 A share price move, okay. And
344 |343 |01:00:34,860 ~-~-> 01:00:43,980 |that certainly was one that fits the criteria, again, based on the accumulation pattern that we talked about, okay, which is right in here. So now we have
345 |344 |01:00:43,980 ~-~-> 01:00:51,810 |another stock that was fitting that criteria. So you can see right away, it's not a lot of the stocks that are are meeting the criteria, but the ones that do
346 |345 |01:00:52,260 ~-~-> 01:01:10,560 |are doing very, very well. And that's the benefit of my stock picking approach. Next is UnitedHealth UNH Okay, same thing happening here. Lower low. In the
347 |346 |01:01:10,590 ~-~-> 01:01:23,220 |general market SP went lower in October, then we did when August, the low it was made in the stock share price in August of 2014. The low meeting October of 2014
348 |347 |01:01:23,430 ~-~-> 01:01:34,740 |is higher. So we had that accumulation pattern. And here's the wonderful thing. We're already an uptrend, okay. And you can see the relative increase in price
349 |348 |01:01:35,190 ~-~-> 01:01:49,050 |going into the first week of April, the high comes in at 123 76 with the low forming around the time we will be buying $80. So more than $40 a share, price
350 |349 |01:01:49,050 ~-~-> 01:02:02,790 |increase. Okay. Again, one more for the list. UTX is our next symbol. And you can see right away we made a lower low we're not interested in that stock price
351 |350 |01:02:02,790 ~-~-> 01:02:17,370 |went lower. Just like the share price did even though we did some appreciation of 97 124 This is a stock we would not have been buying Verizon is the next.
352 |351 |01:02:18,989 ~-~-> 01:02:27,059 |And again Verizon stock or whatnot investments like Coca Cola to me made a lower low anyway, I don't care if this thing would have had a huge divergence and
353 |352 |01:02:27,059 ~-~-> 01:02:37,289 |didn't make a lower low I still would have never bought Verizon but they have it in an index. So we have to at least consider for the teaching purposes. Walmart
354 |353 |01:02:37,289 ~-~-> 01:02:54,779 |is next. Okay, and you can see the low in here is 7277 and 7261 went lower. It did have about an $18 price move. But again, because we needed lower low we're
355 |354 |01:02:54,779 ~-~-> 01:03:06,179 |not interested in the stock. It's been pretty much dead money since then. And last on our stock list is obviously everyone's favorite Disney. I mean that
356 |355 |01:03:06,179 ~-~-> 01:03:14,729 |facetiously the lower low here and the lower low in the stock price as well. Even though we are an existing uptrend. The price of the shares did move from
357 |356 |01:03:14,729 ~-~-> 01:03:29,279 |$70 to 109. Basically before going into April, and has since moved up to 122. So again, this stock has had some increase. But again, based on the technicals, we
358 |357 |01:03:29,279 ~-~-> 01:03:40,469 |would not have been buying it on this stock selection approach. So there you have it, the Dow 30 ran through rather pretty quickly didn't take too long I did
359 |358 |01:03:40,469 ~-~-> 01:03:49,139 |a whole lot of jawboning, that's something you wouldn't have done doing it individually. And you can see the results just by looking at a chart we've shown
360 |359 |01:03:49,139 ~-~-> 01:04:00,929 |in this teaching tutorial. What was the appreciation of each share price move in this in the stocks that we would have selected and there was only really one
361 |360 |01:04:00,929 ~-~-> 01:04:10,769 |that just had a very little bit of a move but it certainly did give you the $5 increase that you would expect in share price. So by having that stock list in
362 |361 |01:04:11,549 ~-~-> 01:04:21,089 |coming away with the idea that we have stocks that are absolutely being accumulated by smart money at a time when the market in itself should as a whole
363 |362 |01:04:21,089 ~-~-> 01:04:29,609 |move higher. Okay and we know when we want to get out we want to get out before tax season. Okay, April, you want to be getting out right before April. Now.
364 |363 |01:04:30,329 ~-~-> 01:04:40,739 |When you read Larry Williams work he tells you to hold into me again I want to be getting out before everyone else is expecting to get out and around February
365 |364 |01:04:40,739 ~-~-> 01:04:52,409 |to April. That's the sweet spot I'm looking for for exiting my stock moves Should I have any. And these stocks once you come to the realization of they are
366 |365 |01:04:52,409 ~-~-> 01:05:05,669 |the ones that you want to be buying based on the higher lows that you look for in October or the fall low that makes Dow Jones, NASDAQ and s&p 500 Failure
367 |366 |01:05:05,669 ~-~-> 01:05:14,549 |swing like we talked about earlier in a video, when that happens, okay, what you're doing is you're looking for undervalued call options, okay. And for
368 |367 |01:05:14,549 ~-~-> 01:05:31,799 |instance, let's go back to Home Depot for a second. Okay, at Home Depot when we traded down to 8635, okay, you could have been looking for a $90 call option,
369 |368 |01:05:32,489 ~-~-> 01:05:44,039 |okay, it's going to be out of the money above the marketplace, the market has been dropping, put to call ratio will be more slanted for puts being more
370 |369 |01:05:44,039 ~-~-> 01:05:54,269 |overvalued and calls it, which is what you would like to see anyway, because the markets gonna be dropping down as you see here. And generally, by taking your
371 |370 |01:05:54,269 ~-~-> 01:06:06,449 |money in investing in the options, okay, you don't have to see a lot of price move many times to show the return on your premium. So numbers, whatever,
372 |371 |01:06:06,719 ~-~-> 01:06:17,699 |whatever your premium is on a 90 call option, okay. And since it's October, you want to give yourself a little bit of time and go out a little bit in a couple
373 |372 |01:06:17,699 ~-~-> 01:06:28,829 |months. So you don't want to be trading every single bit of your money on one stock, you want to diversify all across the board on each one of the stocks that
374 |373 |01:06:28,829 ~-~-> 01:06:40,979 |we've picked out of the Dow 30. So you can see the benefit of doing this, you're shrinking the universe of trading, okay, down to 10s of 1000s. Okay, possible
375 |374 |01:06:42,119 ~-~-> 01:06:43,469 |issues to trade into.
376 |375 |01:06:45,420 ~-~-> 01:06:56,490 |But you got a small little watch list, that makes sense. You're looking for that seasonal in in fluence of pricing on stocks to go up higher in the fall, which
377 |376 |01:06:56,490 ~-~-> 01:07:06,570 |you can prove to yourself with five minutes looking at all historical price data, October or the fall months, seasoning is a low, it's a buying opportunity.
378 |377 |01:07:06,660 ~-~-> 01:07:16,680 |Okay. And having that in mind, when you're coupling that with strong technical price action that shows an unwillingness to see the stock price dropping,
379 |378 |01:07:16,710 ~-~-> 01:07:26,730 |dropping lower, that is indicative of accumulation, that means to everyone that has an interest in buying stocks are in very, very much interested in buying
380 |379 |01:07:26,760 ~-~-> 01:07:34,560 |those particular stocks that make a higher low, the general market is going to look at, you know, at first glance, it's going to look like it's you know, it's
381 |380 |01:07:34,560 ~-~-> 01:07:42,030 |going to hell, and there's no, there's no end in sight, it's going to be going lower, lower, lower, lower, and no one's going to be wanting to buy and you have
382 |381 |01:07:42,030 ~-~-> 01:07:48,510 |to be willing to buy news conditions, because everyone else is going to be throwing in their towels are gonna be selling you getting rid of their shares
383 |382 |01:07:48,510 ~-~-> 01:08:00,330 |they're gonna be, it's gonna be a fire sale, everyone's getting out. And because of that mass exodus of share holding, it's going to give a lot of liquidity for
384 |383 |01:08:00,330 ~-~-> 01:08:09,030 |those individuals that are wanting to buy, okay, they're going to be buying aggressively buying a lot of it. But the stocks that don't make that lower low,
385 |384 |01:08:09,480 ~-~-> 01:08:17,670 |it's again, very important understand that that's only happening, because if it was a weak stock, and nobody really wanted it, it would drop lower, just like
386 |385 |01:08:17,670 ~-~-> 01:08:27,720 |the general market does going into fall. But if they are failing to drop lower, and the pre existing trends, and they have good sales numbers, previous quarter
387 |386 |01:08:27,720 ~-~-> 01:08:37,800 |and your year to date, you just you're asking your for a loaded, perfect deal. It's very rare that it happens in the stock market. And I'm not saying you're
388 |387 |01:08:37,800 ~-~-> 01:08:48,000 |gonna be right on all the companies you invest in. But by diversifying across all of the shares that I'm sorry, the stocks that you ferret out with this
389 |388 |01:08:48,000 ~-~-> 01:08:56,760 |system. By having this, it gives you the the advantage of all the other folks out there that are trying to just pick stocks, they don't even know what you're
390 |389 |01:08:56,760 ~-~-> 01:09:02,760 |doing. If someone's talking about on CNBC, they're going to go in here, buy a couple shares and hope that they're going to get right, treating it like a
391 |390 |01:09:02,760 ~-~-> 01:09:14,820 |lottery ticket, do not invest with a lottery ticket mentality, you have to have a reason for it. I don't have to prove very long with a long winded presentation
392 |391 |01:09:15,000 ~-~-> 01:09:25,560 |that stocks rally in the fall historical evidence suggested period and it's so cyclical, it happens all the time. How much does it rally up it that's
393 |392 |01:09:25,590 ~-~-> 01:09:34,920 |indicative of the general market, but it will always give you an opportunity to get $5 A share increase on the stocks that we've selected with this. And that's
394 |393 |01:09:34,920 ~-~-> 01:09:46,500 |all you need. If you want to make 20% return on your money every year and not be in the market. Okay for longer than six months. Okay. And I'm giving you a worst
395 |394 |01:09:46,500 ~-~-> 01:09:55,140 |case scenario again saying you bought in October, November is one month, December, two months, January, three months, February, four months. March is
396 |395 |01:09:55,140 ~-~-> 01:10:04,110 |five months. April is six months going into May. Okay, so, worst case scenario You're staying in the market new longer than six months, I'm getting out
397 |396 |01:10:04,170 ~-~-> 01:10:15,660 |anywhere between three and a half to four. Okay, that's, that's my, that's my, my duration in stock investing, because I have had opportunities where I've been
398 |397 |01:10:15,810 ~-~-> 01:10:30,480 |profitable holding stocks longer term. But that's on very, very, very long term. Strong companies like Amazon and an Apple have been in Netflix has been one
399 |398 |01:10:30,480 ~-~-> 01:10:40,110 |recently, where you just want to get into it, wrap your arms around it, hold on to it, and to see where it goes, I usually start those off with options, okay,
400 |399 |01:10:40,110 ~-~-> 01:10:49,650 |and then once the option shows me some profits or whatever, then I may exercise the option, or I'll use those profits to buy into into more positions and build
401 |400 |01:10:49,680 ~-~-> 01:10:59,910 |a larger position as the stock goes up. But just for stock trading, and for you to manage your own money in a self directed IRA, or just do your own individual
402 |401 |01:10:59,910 ~-~-> 01:11:11,040 |retirement account trading, there are times when you want to move to cash and when you want to move the bonds, okay. And once we get into the springtime, I
403 |402 |01:11:11,040 ~-~-> 01:11:25,020 |always like to either go into bonds or go into cash. And right now, my advice has been for the old part of 2015, I told her one last fall in 2014, that you
404 |403 |01:11:25,020 ~-~-> 01:11:35,280 |have to be out of stocks, okay, get out of stocks, because stocks are going to get hammered in 2015. Because it's going to be a distribution year. And it will
405 |404 |01:11:35,280 ~-~-> 01:11:36,780 |be indicative of
406 |405 |01:11:37,860 ~-~-> 01:11:48,450 |that if you start seeing consolidation, and very limited upside. And we saw that going in. Okay, so you're getting this information, as I'm talking to you right
407 |406 |01:11:48,450 ~-~-> 01:12:00,960 |now. It's the the first week of September 2015. As I'm producing this very video, as we're, as you're listening to it now, the the idea of future trading,
408 |407 |01:12:01,290 ~-~-> 01:12:13,050 |as it relates to this system of stock selection, I have faith in it, I will, I will use it. But I will also tell you that this only this year alone, I won't be
409 |408 |01:12:13,050 ~-~-> 01:12:23,100 |doing it. Because I don't think that we have the conditions in place to allow the risk that's associated with it, I'm just going to stick to trading the
410 |409 |01:12:23,100 ~-~-> 01:12:34,800 |foreign exchange market. And I'm not going to be doing anything else. But if commodity markets present something may go into some futures trading for 2015
411 |410 |01:12:35,220 ~-~-> 01:12:43,170 |Going into 2016. But for stocks, I think this is going to be one year I sit out and just kind of like sit on my hands because I just have a very ominous feeling
412 |411 |01:12:43,170 ~-~-> 01:12:50,100 |about what may or may not unfold for this year. So in other words, I'm not risking anything in stocks. And I told everyone last year, I would not be doing
413 |412 |01:12:50,100 ~-~-> 01:13:02,580 |it. So at the time of this recording, we were right in our prognostication from last year, summer 2014, I told everyone that we would have a high form in the
414 |413 |01:13:02,580 ~-~-> 01:13:13,710 |first week of July in the stock market, which is seasonal as well. And we would see it slide down into the October lows. And since that time, at the time of
415 |414 |01:13:13,710 ~-~-> 01:13:22,740 |this recording, the stock market has been smashed, and they're having all kinds of problems. And we mentioned last year, China would be an issue. And that's all
416 |415 |01:13:22,740 ~-~-> 01:13:30,930 |we're hearing about right now. So we were ahead of the curve. And that's one of the cool things about our teachings in the ICT camp. When I give these tools and
417 |416 |01:13:30,930 ~-~-> 01:13:43,230 |concepts to you, I tell you, they're good because I know that work. And you're seeing the fruits of it all now. So if you are taking your money, and you're
418 |417 |01:13:43,230 ~-~-> 01:13:52,800 |investing it on a weekly basis and contributing to a fund that you're using for retirement, and if you're driving it yourself, and you're investing the money,
419 |418 |01:13:52,830 ~-~-> 01:14:03,990 |yourself, selecting the stocks yourself, and you have this opportunity, you know, as you're employed stock selection approach, I am pretty confident that
420 |419 |01:14:03,990 ~-~-> 01:14:12,690 |you will be absolutely pleased with the rate of returns that you will get. And you compare that with the industry standards. It's so much better, it's way way
421 |420 |01:14:12,690 ~-~-> 01:14:20,820 |better. And you're not always at risk, you know, in the market all the time. And it's nothing better than outperforming the market because every that's
422 |421 |01:14:20,820 ~-~-> 01:14:30,990 |everyone's goal. And you don't need to be just an index funds index funds. If you don't want to do this type of trading, then obviously I would, I would
423 |422 |01:14:30,990 ~-~-> 01:14:39,690 |suggest you have your money in index fund, because the index is going to turn around in October anyway. And then you'll you'll see your money appreciate
424 |423 |01:14:39,690 ~-~-> 01:14:47,190 |there. But it same thing happens. You want to be able to move in and out of it as well. And you may or may not because of where you're at in the world, or what
425 |424 |01:14:47,220 ~-~-> 01:14:56,160 |investment vehicles are made available to you. You may not have that privilege to be able to move in now. So hopefully this has been insightful to you guys.
426 |425 |01:14:56,190 ~-~-> 01:15:03,690 |Obviously the same thing would be done if you're looking at the s&p 500 stocks and the Nasdaq 100 stocks, you just go through and look for that, that
427 |426 |01:15:03,690 ~-~-> 01:15:12,840 |accumulation pattern, and you hold it no longer than the last week of April going into May, if you're holding the shares in May, you have broken the rules
428 |427 |01:15:12,840 ~-~-> 01:15:23,370 |as far as I'm concerned. But again, we're looking for a $5 increase minimum. And the reason why that takes place is it will allow your options as well to be
429 |428 |01:15:23,370 ~-~-> 01:15:34,230 |profitable. And if you are going to be doing the shares, then obviously, your your your money is going to be seen, you know, the $5 increase based on your,
430 |429 |01:15:34,500 ~-~-> 01:15:41,250 |your number of shares. You don't need a whole lot of money to do this to do well. Again, it's not the amount of money you have, it's the amount of percent
431 |430 |01:15:41,250 ~-~-> 01:15:53,460 |return that you make and the risk that you assume. So there it is, guys. Don't let your losses compound don't don't allow the market turn on you. And
432 |431 |01:15:54,330 ~-~-> 01:16:06,930 |personally, because you're only trading one time a year, I would limit the exposure to each share purchase that you make for each one of the stocks. Don't
433 |432 |01:16:06,930 ~-~-> 01:16:18,210 |let your loss go more than 5%. Okay, and because of the timing, because of the general market trend, it's generally seen at that time of year. Your drawdown,
434 |433 |01:16:18,210 ~-~-> 01:16:20,910 |if at all, is very, very
435 |434 |01:16:22,170 ~-~-> 01:16:31,410 |low compared to other times of the year trading with us is really no indication of a strong impulse for the market to go up. There's no other stronger influence
436 |435 |01:16:31,410 ~-~-> 01:16:39,990 |in the marketplace as far as it relates to stocks than this. And I look forward to your success stories. And with that, guys, I wish you good luck and good
437 |436 |01:16:39,990 ~-~-> 01:16:40,350 |trading