Growth & Value Strategies | Pat Mullaly, CMT| 12-5-19

Growth & Value Strategies | Pat Mullaly, CMT| 12-5-19


no I’m not James Boyd but I’m here with
you today to talk growth in values so stick around good afternoon everyone the market is
closing I’m Pamela Lee its growth and value strategies I’m sitting in for
James Boyd today who’s off on another adventure and today we’re going to look
at some volatility measures we’re going to look at some interesting things that
might help us look for maybe some changes in the market or maybe not
so before we do all of that remember we do have to get through some important
information we’re going to look at some technical analysis today we will we
won’t necessarily dive too deep into the fundamentals we’re going to look at the
account that James has but technical analysis is not the only approach there
are other approaches as of course James teaches in this class as far as growth
and value go there’s always risk of loss in trading and things can be substantial
when it comes to loss past performance of any security strategy does not
guarantee future returns we’re going to look at live symbols today but that does
not mean TD Ameritrade is making any kind of recommendation about the
suitability of the security or the strategy and transaction cost although
there are men they are minimal now they arc there are some that need to be
considered zero Commission’s that we have apply to online US exchange this is
taught see ETFs and options so there you go
let’s see all investing involves risk including the risk of loss all right
let’s get out there and take a look at the at the markets presently and I got
to do some some checking real quick here all right all right so as I said we’re
gonna start looking at some things with the SPM again Pamela Lally I’m a
chartered market technician what you’re looking at here is the S&P 500 it was
basically a nothing day up about 15 hundredths of a percent or 15 basis
points whatever you want to say a very small range day and the bottom indicator
I have here is my own design and it measures some what
I call conviction in the market and it’s right where it’s supposed to be today
we’re up fractionally and this is sitting right at the 50% area where it
should be so we’re not getting any unusual unusual data like we had last
Friday we’re a small range down day but a lot of selling going on in there and
every day there’s some buying there’s some selling sometimes there’s more
buying than there is selling they kind of sneak that in there but today it’s
landed right just about where it opened and so it did sell off some buying did
come back in but that did not continue to push the conviction indicator to the
upside beyond that let’s take a look at the volatility so I’ve got these out of
order some what I want to take a look at the VIX and so the VIX bouncing back to
the upside I look at the 20 period exponential moving average as well as a
200-day moving average and the their I don’t look at those necessary to see if
one’s crossing the other or anything like that I look at the standard
deviation of the spread meaning the difference between here and it was
signaling that maybe some volatility might be coming in but nothing of any
large magnitude and right now we’re seeing the VIX come back in it doesn’t
mean that it won’t check back to the upside but we’re certainly seeing you
know some of that some of that come off now that being said the S&P 500 could
roll back over and check some check some some lows we’ll figure that out here in
a little bit this is another indicator that I’ve talked about in my classes my
technical analysis classes strategies this is a relative strength between way
out of the money puts and the VIX so people buying a lot of protection
anytime it’s above 10 that’s a warning flag we’ve we got the we got the
pullback the VIX started outperforming the VIX popped started outperform the
amount of puts that were out there today popping up just a little bit but nothing
threatening those things happen things go up down in sideways one of the things
James asked me to do today was something I think he does fairly often and that is
look at since it says growth in value look at a growth index compared to a
value index and so what I’ve done today is I prepared some relative strength
because theirs might be a little bit of give-and-take
going on out there today and when I say that it is we’re looking at this
relative strength down here at the bottom a relative strength of the
Vanguard growth index this is not trade well it’s just an index and it is
presently drifting you know yeah kind of sideways right in here right drifting
sideways price growth is rallying now that’s on an absolute basis growth is
continuing to move higher but what is stronger than something else that’s
where our performance comes into play and if you’re going if you want to
outperform the market which is mainly what people are trying to do when
they’re taking these classes we want to see an upward push so in since the
beginning of November we’ve we’ve seen growth start to break back to the upside
so the question in the growth in this growth picture here are we starting to
see kind of a double triple bottom and the relative strength and growth now
that against the sp500 great then it becomes an onus on you on the investor
to go out and find things that that fit that picture of out performance that
would mean you know other other stocks that fit that out performance so again
from an absolute basis rallying today bouncing up from its 20-period moving
average recently in the last month or so starting to outperform the S&P 500 we’ll
see if that outperforms last let’s take a look at value now V IV a X and we can
see the same thing with value value is in a strong uptrend let me get a
different drawing tool for that values in this strong uptrend so from an
absolute basis it’s doing well it has and for them slightly outperforming the
S&P 500 and so where did that come from when did that start well it started you
know you know a ways back that was the big talk a value is starting out
performed quote unquote momentum and for me that’s such an odd term momentum
momentum is a factor it is just like growth is a factor but people look at
growth stocks anything that’s moving higher and usually has are lower in a
fast pace has momentum in a certain direction so the things that have
changed in a moment were those stocks that were beating up stocks that we’re
looking for some value and that’s kind of the topic we want to talk about a
little bit about today where do we find value if you looked at these two charts
that we just looked at hey they’re both going up right from an absolute basis
but from a from a standpoint of the overall market the standpoint from not
just you know being a closet indexer meaning just you’re just trying to do
what the markets doing that’s called indexing that’s beta you want alpha you
want to grow your account and alpha comes from that’s the that’s means extra
get possible gains extra P&L that might come from stocks that are outperforming
the market so we look at this we look at these alpha we look at the performance
of these and from an absolute basis we certainly see that both of those are
moving strongly and the in outperforming at least in the in the short while over
the S&P 500 now let’s go back over here to the S&P 500 and what I’ve done here
is I’ve got a different kind of an indicator this is something you can do
it’s very easy to do it is a relative strength indicator down here at the
bottom relative strength is is just something divided by something else if
something is growing if something is outperforming something else just like
we looked at previously if something is outperforming then the line that this
this index down here this chart this lower pain will be rising
when it’s outperforming when it’s underperforming it will be falling and
so this hasn’t this what you’re looking at in this lower pain has nothing to do
with the S&P 500 we just put that on there to help guide us along and so what
are we looking at that we’re looking at growth if I can get a drunk tool here
growth Vig a X growth divided by Vi V a X so when we take when we take growth
and we divide it by value if this line that were if the the lower the line in
the lower pain is moving to the upside then what do we have we have Vout we
have growth outperforming value when it’s falling we have growth
underperforming value and so this became the big topic right back in the end of
August beginning in September we started to see value outperforming growth how
did we know well we started to see the breakdown in the relative price relative
to each other so the relative strength of growth divided by value and so value
if if you wanted to outperform you would maybe move from those value from those
growth names what are those those are the ones that have been you know
rocketing higher those are the ones that the p/e ratios the PEG ratios the
price-to-book all the different ratios that James may talk about those are the
ones that maybe got a little bit ahead of themselves and then people started to
sell those and went and looked for value right and so where do we find value well
if we’re looking at a chart we find it we can find it at the lows right and
that’s why we look at the VIX if there we get volatility a strong upside
volatility sometimes things pull back and if things pull back are they at
areas that are our value area a place that we can come in with a lower risk
idea and buy at those areas and so just looking at the S&P
a value area would be something down here after pullbacks right it’s really
hard to step out in front of the bus and buy these pull backs but if you’re a if
you’re thinking about institutions you’re thinking about people who have to
buy where are they where are they going to be buying if they have a lot of money
to expend they got to buy slowly but surely on pullbacks if they’re looking
for value they’re not going to look to buy at a higher price right they’ll
start certainly unload perhaps maybe sell some some things at higher prices
and that’s why we see resistance come into play and so the the the what we
look for as technicians and as value people we look for price to pull back
and we also use these ratios to say hey is growth where we want to be is value
where we want to be right now presently however in the very near term what are
we seeing we’re seeing a little bit about performance of growth compared to
compared to value so the question is always somebody’s always asking those
questions where do I need to be well if something’s working for you and it’s
still outperforming the market and it still makes sense then you don’t really
need to do anything and that’s one of the things we’re going to do today is
take a look at James’s portfolio this this this webcast portfolio and see if
anything needs to be done does anything need to be extra shares need to be
bought do something need to be sold those types of things so right now
growth outperforming so if it continues to outperform meaning we if we see this
push back to the upside then what can we do well you better be on guard people
need to be on guard and have some have done the work to find those growth
stocks that may be turning around maybe finding some support especially when we
get this get this volatility it could even be things that you already already
own ok let’s move forward here’s that VIX again and
then let’s take a look at Facebook this is in the account and it was bought on
1018 so when we look at the the chart here let’s take a look at some things
when are people most frightened to buy when things are on sale right so if we
look at what James did here if we look at 10:18 let me find that James bought
as it was moving to the upside I don’t know if this was put in I don’t have the
faintest idea if it was put in ahead of schedule meaning you know bought a
upside buy for whatever reason but if we look at this if we look at this and I’ve
got for some reason a few different lines on here oops let’s take a look at some
resistance and I’m going to talk about buying things on sale so here’s this
resistance line let me get rid of this one up here you talk I’m going to talk
about a couple of things right now and this is what what you probably you may
want to look at when the market gets a little bit volatile but the markets
trend is still up because in reality long-term trends up your immediate term
trends up short-term trends down or slightly or up maybe turning back up
that’s still considered by technicians and by everybody else out there somewhat
bullet’ I shouldn’t say everybody else out there you never know the contrarians
out there but when we look at 10:18 right here is this pulled back on this
on this day you know looking like a kind of a maybe perhaps thinking it was a
bearish flag it is pulling back from resistance it pulled back on better than
average volume on a 50 percent basis so when it moves when we see that kind of a
pullback we probably expect this to continue to drop so another rally small
range day rally inside of the previous day and then another sell-off had never
here’s the here’s the key to what we’re looking at here is it never reached back
down into this area here so taking out all the lines and everything what do we
get we get and so let me do that clear the drawing set to get that out of the
way and then what do we get we get a continuation pattern which is some
people might look at this as a inverse head and shoulder you can call it
whatever you want it definitely when we look at this on the upside definitely
moving to the upside so let’s parse this out a little bit one of the interesting
things and that can be done is really look
back in time and look to see if it’s on sale so we look at this big rally but
and and these tops in here and that’s where it started to sell-off started to
sell off on these earnings pretty big volume and then it it really kind of
stopped right so once it stops then we want to put in some measurements in here
and so I’m going to draw a line across here I’m really basically looking at the
shoulders so if you’re looking for value let’s say it’s Friday afternoon you get
this or Saturday morning you get the you get the big newspaper it has all the ads
in it something you’ve been wanting or some kind of your favorite food is on
sale right it’s three dollars off three dollars a pound off do you buy when it’s
on sale or do you wait until it goes back up to make sure it was on sale
right make sure it’s not gonna get any cheaper and that’s the conundrum we run
into what if it goes lower or something low can always go lower but that’s where
we come in do some measurements in here and this this action right here on
Facebook was fairly telling there was a lot of volume and price struggled really
to go very low outside of this range when we look at I’m going to draw a line
across here when we look at the dip below that low right there not a lot
happening of all this volume in here there was there for every buyer there’s
a seller in theory right there will be something that’s the turnover somebody
has to be buying those shares and so the question comes how much buying was in
that area and when we look at this last down day very small range downed a
pretty big volume it went nowhere that’s telling us something and then at rallies
out of that then it brings us right to where we are right now and the question
becomes if this is in James’s portfolio here is there any reason to sell when we
look at these this movement to the upside this volume relatively low small
range days low volume all that’s telling us is there’s not a lot of demand and so
when there’s not a lot of demand not a lot of buying look for perhaps
some sideways movement maybe a little bit of selling so we’re getting that low
volumes selling coming in over the next few days and now we’ll look for areas
that if it gets to that area you’re you’re out so what’s one of the rules
that James has one of those rules that James has is you know if it Pierce’s by
3% especially if you’re looking at you know more trend trading value style or
trend trading if it Pierce’s a a not necessarily a recent low like two days
ago three days ago if it Pierce’s a longer term low by 3% well maybe it’s
time to go right you could do that you could say well we bought it on the 18th
on this down day so you could look at this low in here and say if it breaks
below that which would get you below the 200-day moving average that’s something
to be that’s something to think about below the long-term trend if it’s below
that 200-day moving average that moving average very likely will have flattened
out at best and may be starting to may may be starting to turn right so it’s
that’s where you’re going to see a maybe a lot of sellers come in right but we
want to we want to be careful because that’s what happened here it appeared
like sellers came in but value players looked at looked at Facebook and said
hmm I got to buy a lot I’m gonna start buying in tranches and where do they buy
in tranches throughout and at all of these pull backs along the way right and
where are they going to sell they’re gonna sell once its moves a lot higher
and they get an opportunity to sell into large volume that’s basically what
occurred over in in this area right in here so bigger volume moves they sold
into that some definitely finding that 200-day moving average and bouncing off
that so nothing really needs I think is what I’m trying to say here
nothing needs to be done with Facebook let’s move on quickly to not that one
that’s not in your portfolio Fiserv this was bought 816 August 16th and when we
look at that that is again breaking to the to these new highs now a kind of a
climatic run in here probably signaling maybe some sideways movement where could
you where could you buy you could buy on the breakouts there’s two places to buy
in reality that we can talk about I’ll talk about right now you could buy along
there on these breaks or you could buy on these pull backs these pull backs are
the value areas right who comes in on the breaks more of the momentum growth
people and so buying up here more of a growth style and in August what was
strong growth was outperforming value so therefore looking at strength buying
into strength not inordinate amount of strength and that’s something that’s up
you know an intense amount off of it’s off of its base pattern which is part
and parcel of everything we’re going to look at here these long base patterns so
buying into that strength not necessarily a horrible thing buying too
much strength is where you want to be careful but on this one again value
coming in buying at these low areas and I’m just going to dot those real quickly and then I’m going to lower the relative
strength on this still strong right flattening out so you want to start
questioning that a little bit but when we look at these these areas where price
came down to support a nobody was dumping the shares this very low volume
in these areas volume picked up here so supply coming on volume picked up
nothing real radical and they started buying it up on this pullback in here
that was your earnings pop again breakaway gap and it and it ran so
several different areas you could buy here at that point value is overtaking
growth but you’re already in the if it’s if it’s not outperforming the
S&P 500 you might want to rethink it but it’s outperforming so and it’s still
holding up nothing you know if it breaks below these lows of of the breakout if
it breaks back down into the gap maybe then maybe you start taking some shares
off there’s not a huge position in this 100 shares you could sell half of those
shares might be something to think about if this really gets going to the upside
in XP I you know this is very similar to think about these basing patterns and
these are very these the structure of basing patterns is very important
relative strength on this stock very strong and this was purchased on 910 so
let’s take a look at this 910 comes in right where that stop-loss is I think
that’s on in my my my account here so let me see if I can nope not gonna let
me do that trying to get away from I’m just going to cancel somebody stop-loss there we go oops so I’ll tell James just
in case it was his but I don’t think it was his 910 is right here again buying
the breakout when we look at price now this is where people get the jitters
we buy these people buy these breakouts and expect it to pull back it pulled
back it held it held that hell just made another sideways base pattern and it’s
doing the same thing I want you to recognize that that’s what this stock
does know that know the stock you’re buying it has these base patterns these
sideways movements it goes through sometimes they get stacked on top of
each other and pretty much that’s what this one’s doing another sideways base
pattern and so these are tough for people because they run and then they
drift sideways forever so when you’re looking at these the the areas to
consider as long as the trends up the areas to
consider to buy are going to be these these dips right buying on these dips
bounce at closing above those low day’s highs whatever method you use but
nothing really needs to be done on this one why Pat because because it is just
drifting sideways it’s not broken any major lows so in in terms of sitting on
your hands nothing’s changed it has the complexion
changed has the what this stock typically does has it created some kind
of movement that says something’s up no it hasn’t and even if you get even if
you fear that something’s happening make sure it’s just not fear and emotion the
fundamentals won’t change until typically until the stock has pulled
back quite a bit so you look for those fundamental or those structural changes
the price and volume structure to see if anything radically has changed so
nothing to be done within xpi now Starbucks a different story and I’ll
show you I’ll show you a comparison something to think about and I don’t
know what James’s strategy is here on Starbucks it was purchased on 1115 let’s
go find that 11:15 so zoom in Starbucks taking a beating so if we’re buying on
11:15 just you know one of the things James is in it since I’m looking at
James’s account that’s what I’m talking about James
I’m not evacuated with James or anything like that but you look at these breaks
of these down trends and that is an important that’s something that’s very
important that that occurs right the other thing that’s occurred here is this
wedge pattern the slowing of this push to the downside so when we look at we
look at what occurred on this the somebody buying over in these air
is down here breaking to the upside breaking that the up or the down trend
line buying the pullback buying the breakout now we can see that Starbucks
drifting to the upside and it appears from what I looked at that James has
only bought one tranche of this but this wedge showing slowing of that downside
move so we look at a push to the downside a large push to the downside
suddenly these have become smaller right so we know that people are not
necessarily willing to throw their shares out there just on the floor for
anybody to pick up now let’s go back over to the monitor tab here and I’m
gonna pop down Starbucks and I got to tell James that closed out at stop loss
Starbucks 118 shares a stop loss sitting down here at $80
now remember stop losses are no guarantee that you get taken out at that
price but at least you’ve got something in there mechanical that says you know
get me out if this happens right you’ve got an area to say yeah I’m wrong right
and then and then reassess once the ones that smoke clears and so Starbucks
really only down a hundred and seventy dollars the question or the the thing to
think about and it comes I’m going to look at the next one here this one is
was bought eight twenty seven so August twenty seventh nineteen and it’s down
thirteen hundred and eighty nine dollars now why is that important because we
want our losses to be smaller if we can have up side gains of three and a loss
of one in theory you know on average you know then that’s a pretty good reward of
three a risk of one law risk means loss and so you always watch these areas and
you look at the you look at this gain here three thousand you look at
gain 9000 1800 500 a loss of a hundred and seventy two twenty thousand the
thing that I want you to notice is that the most of the gains in this in this
whole portfolio this year have come from two stocks my two stocks that the hands
were set on and you let them run right until they until they find that magic
area that says no more I don’t need this anymore but people that let that the
thing I’m fearful of that people do is they look at this they look at this big
gain for the year they look at these big winners for the year and then they look
at this loser and say I can I can go ahead and ignore my stop I I you know I
can lose more on this because I’m still faithful to this company or whatever
that’s when you get in trouble and that’s when the losses overcome the
gains and that’s when you start making more errors and judgments so be very
careful of that so Starbucks really nothing radically has changed the buy
was right right there it’s a drifting higher it’s just fractionally lower than
the than the purchase price so it’s in from a technical aspect it’s it’s in a
good area is even seeing a bit of a plunge back down into these lows may not
necessarily be a bad thing but it certainly is starting to change because
we’re getting higher lows and higher highs right so we’re seeing some change
it’s not a huge change but we’re getting these higher lows and higher highs with
that nothing needs to be done so you know but you know you could you add to
the position could you add the position on a little bit more of a pullback sure
right finding that value Southern Company this was bought I’m gonna have
to put the two-year chart up on this one this was bought all the way back in
November of 2018 right before the big sell-off that had to be scary
so Southern Company 1116 let’s see if it still follows the traits yep so buying
the the break to the upside still in a
pattern then December happened from last year when you think about something if
you were around last year in the fall of last year the market was really pushing
to the downside for all intents and purposes a lot of things were not doing
well so this was one that was doing something that the market wasn’t doing
if you’re looking to be bullish then perhaps this you know this was not
necessarily a bad idea everything when they raid the house when
they sell the whole market off or when they sell the market as hard as they did
last December a lot of things will pull pull down this one didn’t fall as far it
never penetrated the lows over in here and this would be an area for a longer
term value type play if you’re gonna hold it that anything below that area
you know maybe somebody says I want out it got fairly close it didn’t right and
so if you if you got scared out on Christmas Eve well you felt sorry you
know a month later when you got locked out and didn’t get back in right and so
follow the plan follow the rules could you have sold a little bit yep because
certainly could have sold a little bit that would have kept you in the game
paying attention to it if it kept going you would aloft lost less if it kept
going to the downside you were to lost less so that’s another way to think
about your strategy and your tactics but this was a this was apparently a you
know this is a very efficient a very efficient run in other words this trend
when the stock trends and it doesn’t chop hard sideways like what we saw with
in XP I this this stair-stepping what that’s telling us is there’s still
people that are willing to sell right doesn’t that make sense it pops up and
then it chops up and down people are willing to sell and buyers come in and
it just goes back and forth back and forth that’s that’s historical or
statistical volatility when we come in here and we see yeah there’s these
little flags these little pull backs but for the most part it’s in
Uptrend that is a lot of people consider that very bullish nobody is willing to
sell it hard so when we look at what’s happening right now come into what’s
happening right now a longer sideways trend and we’ve seen in quite a while so
maybe it’s just relaxing maybe it’s breathing out and the volume has picked
up a little bit down in here some selling volume some excuse me some
buying heavy buying volume over in here and then finally maybe climactic after a
fashion but really holding a very tight range in where it is right now if we
draw some support lines across here we’ll just go to this high right in here support I’m going to draw the resistance
at that one and that’s to really kind of show you something it went sideways
right here drifted lower there was not a lot of selling small range day a lot of
a lot more volume than here then we had seen price couldn’t go anywhere and has
a lot of a lot of push on volume for price not being able to go anywhere and
then they started to buy it back up so what are we seeing now well we’re seeing
price really draw a line on top of these old highs over in here so still bullish
they are still holding in their making now we’re making higher lows will this
continue on making higher highs but nothing to be done right you don’t
there’s it hasn’t broken down hard it’s not below those lows should somebody
consider maybe looking at the 200-day moving average and putting a stop loss
in in in there to take your chunk out of the middle of the of the trend maybe so
that would be that’s for James to decide I could you know I could put something
in there this is James stock so here’s team US so this one was bought in
tranches I say January through March so back in here is this was moving to the
upside were several buys I think four buys in
here 435 shares the 11th of January three days later
bought another hundred shares a month later about 142 shares but he’s just
stacking it up and then another month later bought another 100 shares average
price 6989 now this is one that has the the danger
right it’s up strong why is it up strong bought in tranches in the first three
months and the trend kept going now this is a choppy trend there’s still people
who are willing to sell we saw some climactic push to the upside here and
some after earnings you know really hard sell-off it stopped the sell-off stopped
right about where this 200-day moving average is telling us right now so if I
draw a line under here we’ve got price support 200-day moving average support
this might be something to consider maybe taking some of this off there’s
435 shares that’s a big gain right just because you have a big gain is not the
okie-dokie to say I can I can continue to hold on to this and give back more
right now because the market could do a December of last year sometime in the
future and take away a lot of gains don’t you know you want to be very
careful with that I’m just seeing a chat in here it says
guidance on identifying developing watch list of prime growth in value one of the
things that some some people do is exactly what we did earlier in in the
session and that is do some ratio comparisons in my class on Tuesdays
every one of my classes the ETF class on Monday and then Tuesdays the active
trading and then Friday the technical analysis advanced charting techniques
look at those types of things and when we look at you know is value
outperforming growth right that’s those those things become very important right
now if I were to put up here instead of Vig ax one of the things you can do and
I don’t have a lot of time to go through a lot of it but one of the things you
can do I’m going to put an IXP that is the that’s an index of services so
consumer you know staples right so in these know that’s communication services
sorry ix okay think of it now hang on the reason I want to bring this up is one of the first things to to think
about doing if you’re trying to build into this I’ve got so much stuff going
on now so i XR sorry i XR the reason I’m pulling up staples is it’s breaking out
right and it’s outperforming presently outperforming the S&P 500 it’s breaking
this downtrend right and so at that point you say well consumer staples well
what’s moving is if this is going to maintain strength there’s a couple
things to think about people might be worried but some of the stocks you might
consider you know going to consumer staples take a look at coca-cola
is coca-cola something you would be considering right if we’re looking for
value it’s down low it’s trying to break to the upside
you know Procter & Gamble you know more James style here you know trending
sideways looking for a move to the upside out starting to outperform the
S&P so that would be kind of the start if you if you notice in my market watch
tab I build I build my own indexes and I have a relative strength table to see
what’s to see what’s outperforming so if I put this on five-day return we can see
staples has been the strongest for the last month so something’s changing and
that was the whole point of everything we’ve done today everything we’ve done
today is value outperforming growth if it is we need to look for stuff that has
that that is starting to turn that has a better multiple a cheaper multiple if
you will compare it to the growth stocks so that’s one one thing you could
consider doing so team US is in an area where it’s kind of becoming possibly a
danger zone now where James puts his stop you can use a mechanical stop you
know a hard stop that you put in the computer again there’s nothing that
guarantees that it won’t gap through that so you won’t necessarily be
guaranteed that price it just becomes a market order but then you have a mental
stop you could say well if t-mobile gets to 72 down below these lows I want out
but then you’ve got this no guarantee in your mind depending on how much
willpower or how much I will that you have in you that says if it gets to 72
I’m out because a lot of people say what’s at 72 I was going to get out but
you know that’s kind of some support I’ll wait to see if it can go back up
right and then and then it becomes a larger and larger loss so all these
things hard to learn and sometimes it takes several several learning
experiences before you get to that all right so I in closing
same thing with visa it’s starting to underperform the market it’s a it’s
flattening prices flattening so this is one that might be considered maybe a
drag on the account if if growth is starting to outperform value and you’ve
got something that’s underperforming the market maybe you rotate out of that and
then Verizon another another telecommunication but on October 18th
again true to form buying those those Peaks above resistance and people feel like oh my gosh you know
it just turned and went right back down shouldn’t we wait well it could have
just blasted off and kept going you never know but you’ve got this range
right you’ve got this range in here between 60 and 59 you know really a
dollar gives you an opportunity to let it pull back find some support maybe buy
add to a position down in here if you plan ahead of time and wait for that to
break okay that is my time I appreciate you letting me come in and hang out with
you guys again I’m more technically oriented but
growth and value really you’re kind of joined at the hip because a value stock
will become a growth stock will become a momentum stock if they take off and move
a lot higher and we’ve certainly seen that look at the look at how the
railroads moved really strong look how P&G over the last couple of years is
moved those are considered wait a minute those aren’t growth stocks well guess
what they happen to have been in that time frame with that I want everybody to
remember that everything we do here is for educational purposes and you are
responsible for any decision you make in your self-directed account thanks again
everyone I’ll talk to you soon

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