Seeking Investors Strong Returns

August 2018

Welcome to our financial journal.

For those of you who are new to the blog, I am the chief writer and I represent a group of people who are traders, educators chart analysts and investors of the financial markets.   I have traded and learned through my experiences in every market cycle as a trader (since 2009) and technical analyst.  Collectively my team and I have gained 3-decades of experience and our resources are expanding.

We would like you to propel our success to the next level.  Let me express to you our strategy and key areas of focus; it includes

• Starting an Education and Training Center
• Fund for private investors
• Media channel through an independent website (.com) that sells lessons, eBooks and streams content

With your support you will join the team of our investment partners and you can get paid based on my trades and investments.  Over the short term I will be offering my mentoring and trading services to individuals and groups, once the group gets filled we will progress to the next level which is a physical location and radio channel!

Contact me at Richardson.Damian@gmail.com and we will discuss how to get started with our team and get paid based on my experience.  

This is what we'll cover

• An initial phone call and strategy session
• A meet up to discuss investment arrangement and payment schedule
• And then determine how the relationship will run into the future

Thank you and keep coming back to this page for more of our successful trades and technical takes on the markets

Longest Run

PCLN expansion

Social Media Suspension

Hey everyone,

There has been a suspension in my blogging activity because of an answer I was seeking with facebook.....

I have been writing on this channel with the knowledge that most of the viewers here were facebook "friends" and I was drawing most of this channel's attention from people in my facebook feed, but for now I am finding a resolution where I can still connect blogspot and facebook together without me necessarily having to post directly from facebook.

Notes on the DJIA in general for this time zone and seasonality

• State of trend: sideways to down, but highs are unconfirmed to buck a new uptrend
• It was a very weak resist point at 25,343, which was completely overtaken in the following weeks
• The spinning sideways made for many peaks and valleys which would have been a good range trading environment
• Consistency of DJIA being a laggard behind the other main market indices

The aspects of this chart; compared to earlier June corrections

• Zone includes a range of 75 points above 25,500 where the DJIA met powerful resistance
• Series of lower highs got expanded, essentially "bought more time" to make it seem like the rally continued but delayed another correction 
• Elements of the recent average true range over two days ares showing more signs of revived volatility:  rally for 485 points (Jul 27) , corrective sequence for 306 points, throw back of 216 points, morning purge of 375 points 
• Depth of June correction lasted 1,325 points!

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technical analysis as predictive, descriptive, and comparative

QQQ

The State of Technology Shares; uptrend, but possibly weakening?

• Things threatening the uptrend
• Technical Structure 
• Possible mean reversion target 

The Candlestick Formational top is in place

• Confirming the leg down has begun, unless stopped
• 50 daily moving average (simple) is only at 171.50
• Retest important base at 169-170

We believe that a return to $170 would be a target that is well within the bounds of most mean reversion trading systems.  

A bearish reversal pattern would normally need more time and momentum to prove that it works.  This one has some of the same characteristics as the prior crests from February, March, and then June.  

6-7 day basing pattern still occured whether it was this past cyle (buy the dip from last week)  or the countless other times over the past 2 years when a base would form, and it would take from 5-7 trading sessions before breaking out to newer highs and resume trend.  

Path of least resistance is down, yet the trend of "series of higher highs" is an important consideration.  

Revisiting NetFlix, the buyers that have returned

NFLX Daily Chart

enlarge these images to see the pictures fully

• Buy the dip worked again 
• Loosely fit rising trendline still supports
• Volume became even drier over the past two weeks
• Tops require more time
• The importance of $423.21/share

NFLX went up 348% over the past 243 trading sessions, so we began doing some studies to find the candlestick patterns and other technical indications that the stock may have topped, and to what degree would we need it to drop before it has significant value again.  

One thing I may have not shared on the prior chart with this study is the upward moving trendline, price generally touched it enough for it to act more of a base of support than anything else.  Also, a trendline like this if broken and held below the current price's direction would flash a sell sign, at least temporarily.  

There are a few odd-ball scenarios when volume spikes happen in the high million count.  What I mean by that is when price traded at an interim top in April the volume count rose to above 30 million shares traded.  Then in mid-June volume spiked again to the 15-20 million range before price consolidated and moved higher toward 418.97 

Similar to how bottoms (base building) if they take more time it could be more of a coiling mechanism, and taken from another point of view tops could take more time to build as well, see how this next example has more of an "M" shaped topping formation:

Lastly,  the level 423.21 is so important for the bear case that if it is violated even on a quick flash it would discredit the bearish possibility of a return to a more discounted price for this asset.  

Swapping One Gap for Another

The Gap Fill Objective was Met, I told ya so

Theoretically VXX shares can trade down greater than 90%.  And if history is any precedent that has happened over the course of the 7-8 years this vehicle has been trading.  What this chart demonstrates is the oversold nature in which volatility has been suppressed so much, 39.72% is a real plummet in our book, so it might be overdue for a bounce

This analog also shows that the price declines greater than 35% were often followed by price gains between 25 and 45%

The Four Hour Chart

The measured move has already been nearly completed.  One of the most classic topping patterns is the head and shoulders top, and on this time frame it can be seen very clearly.  On the left edge from last Friday VXX surged and left a major imbalance in price, and price had 9 days before finally filling it.  Specifically,  the gap spanned between 33.15 and 34.25 on last Friday and was closed in the overnight drop.

When we captured this frame

It is still very early yet, but the bounce is in play!  After falling to 32.55, VXX begane to make its way out of the green box, the location of the box anyway was in a high demand price range, and although we admit it can break the bottom of these levels at 32.50 and below it still acted as a support beam, and could drive it higher into tomorrow and next week:  to 33, 34, 35, etc.

There are also very similar patterns with CBOE-S&P500 Vix too