Expert technical analysis of financial markets by JC Parets
The latest Young Aristocrats report is out, highlighting companies with steady and increasing dividends that are also displaying strong relative strength — a powerful combination. These are some of my favorite stocks to get long when the conditions warrant.
Today’s trade is in a sporting goods retailer that just broke out and looks like it’s ready to start sprinting.
We had a resting GTC order filled at our profit target in the Paid-to-Play portfolio today: [Read more…]
The next new position in our Paid-to-Play portfolio is: [Read more…]
Have you ever resisted something?
Ok, that question answers itself. Of course you have. We all have.
For our purposes today, I’m more specifically focused on the periods when we resist something that deep down we know would be good for us. Or the right thing to do. Or the intelligent thing to do. Or the helpful thing to do.
When nothing but goodness can result from taking a specific action, why do we resist it? Why do we willingly sabotage ourselves like that?
Author Steven Pressfield in his bestselling book “The War of Art” terms this “The Resistance”. Capital T, Capital R.
We all do it. And we often don’t know why.
This has been on my mind as tonight is this season’s first basketball practice for my 8-year-old son’s team. While that alone is significant, this season takes on even more significance for me personally because… I’m the Head Coach! [Read more…]
The next new position in our Paid-to-Play portfolio is: [Read more…]
Happy New Year everyone. How are you playing it?
This morning, our analyst team was bouncing ideas around when I posed the group this question:
“It’s the beginning of a new year. Do we want to continue buying strength (as we have been)? Or do we want to buy some well-selected dips on stocks in sectors we like?”
In other words, what’s our appetite?
The prevailing sentiment that won out was that we have been buying strength — and that has worked well in some areas, particularly homebuilders, Chinese stocks, and metals stocks. But the reward-to-risk opportunities right now may be more favorable in the “buy-the-dip” camp.
So with this in mind, let’s take a look at a stock in the semiconductors sector that has our attention. [Read more…]
We’ve adjusted a position in the Paid-to-Play portfolio today: [Read more…]
Happy New Year, everyone!
I am incredibly excited for 2023. And for today’s note, I am in the middle of preparing to tell you one of the biggest reasons why I’m so excited for this year. It’s a productivity hack that is already taking my personal trading to a whole new level, but it extends to everything outside of trading — work and life – as well!
The plan was to finish up that piece and share it with you today.
However, it’s going to have to wait until another time. For now.
Everyone with a pulse who is aware of what transpired in the NFL football game last night between the Buffalo Bills and Cincinnati Bengals was knocked in the teeth by a heavy dose of reality.
The reality is that no matter how well we plan and strategize, no matter our confidence level, and no matter how well-positioned we might be to succeed in following our dreams, we have to be ever-vigilant and mindful of the very unsettling fact that it can all end tomorrow. Or even today.
The need for being mindful and grateful for everything we have and cherish should be pretty obvious as it pertains to our families and our life outside of the trading screens. You don’t need a long sermon on that from me.
As for trading – which is what many of you do read these notes for my insights on, and I’m grateful for – it’s also (another) reminder to us that putting ourselves in a position to win also means doing everything in our power to prevent catastrophic loss.
Losing sucks and it’s part of the game. It’s the cost of doing business. We can never erase losses from being a part of our daily interaction with the markets. But it only takes one large loss to take us out of the game forever.
We cannot allow this to happen.
Here is a non-exhaustive list of ways (in no particular order) that we options traders can prevent the risk of catastrophic loss:
The best predictor of future success in this business is time. The more time we have to put into it, the more time we’ve experienced it, and the more time we’ve learned about it through reading, mentorship, and community, the better our odds in the long run. But no matter what, we have to REMAIN IN THE GAME. We have to do whatever it takes to make sure we’re ready to take the field for the next play.
Godspeed, Damar Hamlin. Get back to whatever brings you the most joy – whether it’s family, friends, or way down the list… football – as soon as possible. Much love, my man.
