US30 - Clean and Clear!Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst.
As per my last US30 analysis attached on the chart, it rejected the upper bound of the range and has been trading lower.
What's next?
📦We will be trading the range as long as it holds.
🏹As US30 approaches the lower bound of the range around $42,000, I will start looking for bullish reversal setups.
For now, we wait! ⏱️
📚 Always follow your trading plan regarding entry, risk management, and trade management.
Good luck!
All Strategies Are Good; If Managed Properly!
~Rich
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
Stocks
BROADCOM Is this the buy opportunity of the year?Broadcom Inc. (AVGO) has been trading within a multi-year Channel Up since the October 2022 market bottom and broke last week below its 4H MA200 (orange trend-line). In the past +2 years, every time the 4H MA200 broke, the stock was on its most optimal buy opportunity, as long as the 1W MA50 (red trend-line) held.
In fact, it has been holding since the December 09 2022 break-out so as long as it doesn't break now, AVGO is a low risk - high reward buy opportunity. Actually both in 1W RSI terms as pure price action, the current Low resembles the September 06 2024 one, which started the most recent Bullish Leg.
That sequence initially hit its previous Resistance (previous Higher High) before entering a Re-accumulation phase halfway before the Channel Up top. As a result, we expect to see AVGO hitting at least $250 before the next pull-back that quite possible may target $330.
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NVIDIA Update 3 Rangebound with new Low for longsIn this video I bring to your attention what we could possibly expect if we lose the current level and if we do then where is the next crucial zone to look for Longs.
If you have read this then pls do Boost my work and any questions then leave them below
Bank of America (BAC) Shares Drop Over 6%Bank of America (BAC) Shares Drop Over 6%
On 18 February, we reported that Warren Buffett was selling bank stocks, including Bank of America (BAC) and Citigroup (C). This proved to be a sharp decision, as yesterday:
→ Bank of America (BAC) shares fell by 6.34%
→ Citigroup (C) shares fell by 6.25%
As a result, BAC stock hit its lowest level of 2025.
Why Did Bank of America (BAC) and Citigroup (C) Shares Decline?
Investor bearish sentiment may have been driven by concerns over:
→ New US tariffs on imports from Mexico and Canada
→ The risk of renewed inflation growth amid an economic slowdown
This led to a broader decline in financial sector stocks yesterday.
Technical Analysis of Bank of America (BAC)
The chart shows that in 2024, the price was in an upward trend (illustrated by the blue channel), but the $48 level proved too strong for bulls to break. Key observations:
→ In mid-February, a bearish breakout occurred below the channel, and in early March, the same level acted as resistance
→ The $44 level has influenced the trend in the past and could now act as resistance again
→ A drop below the late-December low may indicate a Change of Character (ChoCh) pattern, signalling a potential market shift
BAC Stock Price Forecasts
Analysts remain optimistic. According to TipRanks:
→ 17 out of 19 analysts recommend buying BAC stock
→ The average 12-month price target for BAC is $53
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SPX chart update after calling moves to the $ for 3 yearsHere is the 1st chart I did of SPX back in Jan 2022:
I called the drop to the yellow line on chart. Nailed it to nearly the exact $.
Then in October 2023 I mentioned this:
The rally was confirmed for the next 6 months minimum.
Then in Jan 2024 I posted a red horizontal line as target for the rally:
Now you can see on current bottom chart that price hit the red line target.
This chart setup you see on bottom chart also shows relevance to the 1st chart I did on SPX where when the blue EMA8 went below the orange MA21, a drop happened as per the red X marks and price changes shown on chart. This is close to happening currently which is easier to see on the top chart as I give a close up view on current price action and the EMA/MA's.
Are we about to see a drop as per yellow price change on chart or can SPX bounce from here and move up to the green horizontal line on chart? The EMA/MA crossunder will tell us.
Even though I called the moves all correct previously, at this time in the markets, things are alot trickier so I cannot say with conviction this time around as to which way it will go.
I will update the analysis once the bounce or cross under is confirmed.
Effective inefficiencyStop-Loss. This combination of words sounds like a magic spell for impatient investors. It's really challenging to watch your account get smaller and smaller. That's why people came up with this magic amulet. Go to the market, don't be afraid, just put it on. Let your profits run, but limit your losses - place a Stop-Loss order.
Its design is simple: when the paper loss reaches the amount agreed upon with you in advance, your position will be closed. The paper loss will become real. And here I have a question: “ Does this invention stop the loss? ” It seems that on the contrary - you take it with you. Then it is not a Stop-Loss, but a Take-Loss. This will be more honest, but let's continue with the classic name.
Another thing that always bothered me was that everyone has their own Stop-Loss. For example, if a company shows a loss, I can find out about it from the reports. Its meaning is the same for everyone and does not depend on those who look at it. With Stop-Loss, it's different. As many people as there are Stop-Losses. There is a lot of subjectivity in it.
For adherents of fundamental analysis, all this looks very strange. I cannot agree that I spent time researching a company, became convinced of the strength of its business, and then simply quoted a price at which I would lock in my loss. I don't think Benjamin Graham would approve either. He knew better than anyone that the market loved to show off its madness when it came to stock prices. So Stop-Loss is part of this madness?
Not quite so. There are many strategies that do not rely on fundamental analysis. They live by their own principles, where Stop-Loss plays a key role. Based on its size relative to the expected profit, these strategies can be divided into three types.
Stop-Loss is approximately equal to the expected profit size
This includes high-frequency strategies of traders who make numerous trades during the day. These can be manual or automated operations. Here we are talking about the advantages that a trader seeks to gain, thanks to modern technical means, complex calculations or simply intuition. In such strategies, it is critical to have favorable commission conditions so as not to give up all the profits to maintaining the infrastructure. The size of profit and loss per trade is approximately equal and insignificant in relation to the size of the account. The main expectation of a trader is to make more positive trades than negative ones.
Stop-Loss is several times less than the expected profit
The second type includes strategies based on technical analysis. The number of transactions here is significantly less than in the strategies of the first type. The idea is to open an interesting position that will show enough profit to cover several losses. This could be trading using chart patterns, wave analysis, candlestick analysis. You can also add buyers of classic options here.
Stop-Loss is an order of magnitude greater than the expected profit
The third type includes arbitrage strategies, selling volatility. The idea behind such strategies is to generate a constant, close to fixed, income due to statistically stable patterns or extreme price differences. But there is also a downside to the coin - a significant Stop-Loss size. If the system breaks down, the resulting loss can cover all the earned profit at once. It's like a deposit in a dodgy bank - the interest rate is great, but there's also a risk of bankruptcy.
Reflecting on these three groups, I formulated the following postulate: “ In an efficient market, the most efficient strategies will show a zero financial result with a pre-determined profit to loss ratio ”.
Let's take this postulate apart piece by piece. What does efficient market mean? It is a stock market where most participants instantly receive information about the assets in question and immediately decide to place, cancel or modify their order. In other words, in such a market, there is no lag between the appearance of information and the reaction to it. It should be said that thanks to the development of telecommunications and information technologies, modern stock markets have significantly improved their efficiency and continue to do so.
What is an effective strategy ? This is a strategy that does not bring losses.
Profit to loss ratio is the result of profitable trades divided by the result of losing trades in the chosen strategy, considering commissions.
So, according to the postulate, one can know in advance what this ratio will be for the most effective strategy in an effective market. In this case, the financial result for any such strategy will be zero.
The formula for calculating the profit to loss ratio according to the postulate:
Profit : Loss ratio = %L / (100% - %L)
Where %L is the percentage of losing trades in the strategy.
Below is a graph of the different ratios of the most efficient strategy in an efficient market.
For example, if your strategy has 60% losing trades, then with a profit to loss ratio of 1.5:1, your financial result will be zero. In this example, to start making money, you need to either reduce the percentage of losing trades (<60%) with a ratio of 1.5:1, or increase the ratio (>1.5), while maintaining the percentage of losing trades (60%). With such improvements, your point will be below the orange line - this is the inefficient market space. In this zone, it is not about your strategy becoming more efficient, you have simply found inefficiencies in the market itself.
Any point above the efficient market line is an inefficient strategy . It is the opposite of an effective strategy, meaning it results in an overall loss. Moreover, an inefficient strategy in an efficient market makes the market itself inefficient , which creates profitable opportunities for efficient strategies in an inefficient market. It sounds complicated, but these words contain an important meaning - if someone loses, then someone will definitely find.
Thus, there is an efficient market line, a zone of efficient strategies in an inefficient market, and a zone of inefficient strategies. In reality, if we mark a point on this chart at a certain time interval, we will get rather a cloud of points, which can be located anywhere and, for example, cross the efficient market line and both zones at the same time. This is due to the constant changes that occur in the market. It is an entity that evolves together with all participants. What was effective suddenly becomes ineffective and vice versa.
For this reason, I formulated another postulate: “ Any market participant strives for the effectiveness of his strategy, and the market strives for its own effectiveness, and when this is achieved, the financial result of the strategy will become zero ”.
In other words, the efficient market line has a strong gravity that, like a magnet, attracts everything that is above and below it. However, I doubt that absolute efficiency will be achieved in the near future. This requires that all market participants have equally fast access to information and respond to it effectively. Moreover, many traders and investors, including myself, have a strong interest in the market being inefficient. Just like we want gravity to be strong enough that we don't fly off into space from our couches, but gentle enough that we can visit the refrigerator. This limits or delays the transfer of information to each other.
Returning to the topic of Stop-Loss, one should pay attention to another pattern that follows from the postulates of market efficiency. Below, on the graph (red line), you can see how much the loss to profit ratio changes depending on the percentage of losing trades in the strategy.
For me, the values located on the red line are the mathematical expectation associated with the size of the loss in an effective strategy in an effective market. In other words, those who have a small percentage of losing trades in their strategy should be on guard. The potential loss in such strategies can be several times higher than the accumulated profit. In the case of strategies with a high percentage of losing trades, most of the risk has already been realized, so the potential loss relative to the profit is small.
As for my attitude towards Stop-Loss, I do not use it in my stock market investing strategy. That is, I don’t know in advance at what price I will close the position. This is because I treat buying shares as participating in a business. I cannot accept that when crazy Mr. Market knocks on my door and offers a strange price, I will immediately sell him my shares. Rather, I would ask myself, “ How efficient is the market right now and should I buy more shares at this price? ” My decision to sell should be motivated not only by the price but also by the fundamental reasons for the decline.
For me, the main criterion for closing a position is the company's profitability - a metric that is the same for everyone who looks at it. If a business stops being profitable, that's a red flag. In this case, the time the company has been in a loss-making state and the size of the losses are considered. Even a great company can have a bad quarter for one reason or another.
In my opinion, the main work with risks should take place before the company gets into the portfolio, and not after the position is opened. Often it doesn't even involve fundamental business analysis. Here are four things I'm talking about:
- Diversification. Distribution of investments among many companies.
- Gradually gaining position. Buying stocks within a range of prices, rather than at one desired price.
- Prioritization of sectors. For me, sectors of stable consumer demand always have a higher priority than others.
- No leverage.
I propose to examine the last point separately. The thing is that the broker who lends you money is absolutely right to be afraid that you won’t pay it back. For this reason, each time he calculates how much his loan is secured by your money and the current value of the shares (that is, the value that is currently on the market). Once this collateral is not enough, you will receive a so-called margin call . This is a requirement to fund an account to secure a loan. If you fail to do this, part of your position will be forcibly closed. Unfortunately, no one will listen to the excuse that this company is making a profit and the market is insane. The broker will simply give you a Stop-Loss. Therefore, leverage, by its definition, cannot be used in my investment strategy.
In conclusion of this article, I would like to say that the market, as a social phenomenon, contains a great paradox. On the one hand, we have a natural desire for it to be ineffective, on the other hand, we are all working on its effectiveness. It turns out that the income we take from the market is payment for this work. At the same time, our loss can be represented as the salary that we personally pay to other market participants for their efficiency. I don't know about you, but this understanding seems beautiful to me.
Nightly $SPY / $SPX Scenarios for March 5, 2025🔮 🔮
🌍 Market-Moving News 🌍:
🇨🇳📉 China's Manufacturing Activity Contracts 📉: China's official Manufacturing Purchasing Managers' Index (PMI) fell to 49.9 in February, down from 50.1 in January, indicating a contraction in manufacturing activity for the second consecutive month. This downturn raises concerns about global economic growth and could impact markets worldwide.
📊 Key Data Releases 📊:
📅 Wednesday, March 5:
📄 ADP National Employment Report (8:15 AM ET) 📄:
Forecast: +160K jobs
Previous: +183K jobs
This report provides a monthly snapshot of private-sector employment, offering insights into labor market trends ahead of the official government employment data.
🏢 ISM Services PMI (10:00 AM ET) 🏢:
Forecast: 53.0
Previous: 52.8
This index assesses the performance of the U.S. services sector. A reading above 50 indicates expansion, while below 50 signifies contraction.
🏭 Factory Orders (10:00 AM ET) 🏭:
Forecast: -0.5%
Previous: +1.2%
This report details the dollar level of new orders for both durable and non-durable goods, providing insight into manufacturing demand.
⚠️ Disclaimer: This information is for educational and informational purposes only and should not be construed as financial advice. Always consult with a professional financial advisor before making investment decisions.⚠️
📌 #trading #stockmarket #economy #news #trendtao #charting #technicalanalysis
$NVDA to $130, then a crucial decision.Sure, NASDAQ:NVDA is in a downtrend, but the $114 bottom has been confirmed, which should lead to $130. After reaching $130, we'll see if the king is back.
A double bottom pattern is a classic technical analysis formation indicating a significant trend change and momentum reversal from a previous downtrend. It involves a security or index dropping, rebounding, dropping again to a similar level, and then rebounding once more (potentially starting a new uptrend). This pattern resembles the letter "W." The twice-touched low is now seen as a crucial support level. As long as these two lows hold, there is new potential for an upside.
BUY $130 NOW and enjoy the ride
Falscher Ausbruch auf DAXThe German Stock Index XETR:DAX made a new All Time High yesterday only to close back inside the high's recent price action. This sets up a clear Spike with today's close back inside.
Many signs in the US stock market are pointing to the market turning over for at least a bearish correction. I'll be watching the XETR:DAX for a bearish play of this Spike: possibly back down to the 50% of the rally since August 2024.
AAPLAAPL price is in the correction period. If the price cannot break through the 258.56 level, it is expected that the price will drop. Consider selling the red zone.
🔥Trading futures, forex, CFDs and stocks carries a risk of loss.
Please consider carefully whether such trading is suitable for you.
>>GooD Luck 😊
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Nightly $SPY / $SPX Scenarios for March 4, 2025 🔮🔮
🌍 Market-Moving News 🌍:
🇺🇸📈 Implementation of U.S. Tariffs 📈: Effective today, the United States has imposed a 25% tariff on imports from Canada and Mexico, and a 10% tariff on imports from China. These measures aim to address trade imbalances and protect domestic industries.
🇺🇸🏛️ Presidential Address to Congress 🏛️: President Donald Trump is scheduled to deliver his first address to Congress since his re-election, where he is expected to discuss the newly implemented tariffs and their anticipated impact on the U.S. economy.
investopedia.com
📊 Key Data Releases 📊:
📅 Tuesday, March 4:
🏛️ Treasury Auctions 🏛️:
8-Week Bill Auction (6:00 AM ET): The U.S. Department of the Treasury will auction 8-week bills, providing insights into short-term government borrowing costs.
17-Week Bill Auction (10:00 AM ET): A 17-week bill auction will also take place, offering additional perspective on investor demand for U.S. debt instruments.
4-Week Bill Auction (10:00 AM ET): The Treasury will auction 4-week bills, contributing to the understanding of immediate-term borrowing conditions.
⚠️ Disclaimer: This information is for educational and informational purposes only and should not be construed as financial advice. Always consult with a professional financial advisor before making investment decisions.⚠️
📌 #trading #stockmarket #economy #news #trendtao #charting #technicalanalysis
SPX 500 - simple trade idea- daily 200 MA
- lower trendline of the broadening wedge
- 5750 is 0.382 fib from 5 aug 2024 to 19 feb 2025
you can expect a bounce around 5750 that could lead to new ATH around mid april/may
if close daily below the trendline maybe hard times ?
lets follow the arrows
Confidence 5/10 as i'm not trading stocks
How to pick a benchmark for you portfolio and beat the market What is a benchmark?
A benchmark is an index or a basket of assets used to evaluate the performance of an investment portfolio In the context of portfolio analysis the benchmark serves as a point of comparison to determine whether a fund a strategy or an investment is performing better worse or in line with the reference market.
In the current chart, Bitcoin ( BINANCE:BTCUSDT ) is displayed with a solid and larger blue line in relation to other cryptocurrencies for the current period.
Benchmarks are essential tools for institutional and private investors as they allow measuring the effectiveness of asset allocation choices and risk management Additionally they help determine the added value of an active manager compared to a passive market replication strategy.
Benchmark analysis example: NASDAQ:TSLA - NASDAQ:NDX
Benchmark analysis example: NASDAQ:TSLA - NASDAQ:AAPL - NASDAQ:NDX
What is the purpose of a benchmark
The use of a benchmark in portfolio analysis has several objectives
1) Performance Evaluation: Provides a parameter to compare the portfolio's return against the market or other funds
2) Risk Analysis: Allows comparing the volatility of the portfolio against that of the benchmark offering a measure of risk management
3) Performance Attribution: Helps distinguish between returns derived from asset selection and those linked to market factors
4) Expectation Management: Supports investors and managers in assessing whether a portfolio is meeting expected return objectives
5) Strategy Control: If a portfolio deviates excessively from the benchmark it may signal the need to review the investment strategy
How to select an appropriate benchmark?
The choice of the correct benchmark depends on several factors:
1) Consistency with Portfolio Objective: The benchmark should reflect the market or sector in which the portfolio operates
2) Representativeness of Portfolio Assets: The benchmark should have a composition similar to that of the portfolio to ensure a fair comparison
3) Transparency and Data Availability: It must be easily accessible and calculated with clear and public methodologies
4) Stability Over Time: A good benchmark should not be subject to frequent modifications to ensure reliable historical comparison
5) Compatible Risk and Return: The benchmark should have a risk and return profile similar to that of the portfolio
Most used benchmarks
There are different benchmarks based on asset type and reference market Here are some of the most common.
Equity
FRED:SP500 Representative index of the 500 largest US companies.
NYSE:MSCI World Includes companies from various developed countries ideal for global strategies
FTSE:FTSEMIB Benchmark for the Italian stock market
NASDAQ:NDX Represents the largest technology and growth companies
Bonds
Barclays Global Aggregate Bond Index Broad benchmark for the global bond market
JP Morgan Emerging Market Bond Index EMBI Benchmark for emerging market debt
[* ]BofA Merrill Lynch US High Yield Index Representative of the high-yield bond market junk bonds
Mixed or Balanced
6040 Portfolio Benchmark 60 equities SP 500 and 40 bonds Bloomberg US Aggregate used to evaluate balanced portfolios
Morningstar Moderate Allocation Index Suitable for moderate-risk investment strategies
Alternative
HFRI Fund Weighted Composite Index Benchmark for hedge funds
Goldman Sachs Commodity Index GSCI Used for commodity-related strategies
Bitcoin Index CoinDesk BPI Benchmark for cryptocurrencies
A reference benchmark is essential in portfolio analysis to measure performance manage risk and evaluate investment strategies The selection of an appropriate benchmark must be consistent with the strategy and market of the portfolio to ensure meaningful comparison.
Understanding and correctly selecting the benchmark allows investors to optimize their decisions and improve long-term results.
Weekly $SPY / $SPX Scenarios for March 3 – March 7, 2025🔮 Weekly AMEX:SPY / SP:SPX Scenarios for March 3 – March 7, 2025 🔮
🌍 Market-Moving News 🌍:
🇺🇸📊 Anticipated U.S. Jobs Report 📊: The Bureau of Labor Statistics will release the February employment report on Friday, March 7. Economists expect an increase of approximately 133,000 nonfarm payrolls, with the unemployment rate holding steady at 4%.
🇪🇺💶 ECB Interest Rate Decision 💶: The European Central Bank is scheduled to announce its monetary policy decision on Thursday, March 6. Markets anticipate a 0.25% rate cut, which would adjust the deposit facility rate to 2.5%.
🇨🇳📈 China's Economic Targets 📈: During the National People's Congress, China is expected to set its economic growth target at around 5% for the year. The government may introduce measures to boost consumption and support growth amid global economic uncertainties.
📊 Key Data Releases 📊:
📅 Monday, March 3:
🏭 ISM Manufacturing PMI (10:00 AM ET) 🏭: This index measures the health of the U.S. manufacturing sector. A reading above 50 indicates expansion, while below 50 signifies contraction.
📅 Wednesday, March 5:
🏢 ISM Services PMI (10:00 AM ET) 🏢: This index assesses the performance of the U.S. services sector, with readings above 50 indicating expansion.
Trading Economics
📅 Thursday, March 6:
📉 Initial Jobless Claims (8:30 AM ET) 📉: Weekly data indicating the number of individuals filing for unemployment benefits for the first time.
📦 Factory Orders (10:00 AM ET) 📦: This report details the dollar level of new orders for both durable and non-durable goods, providing insight into manufacturing demand.
📅 Friday, March 7:
👷♂️ Nonfarm Payrolls (8:30 AM ET) 👷♂️: A key indicator of employment trends, reflecting the number of jobs added or lost in the economy, excluding the farming sector.
📈 Unemployment Rate (8:30 AM ET) 📈: The percentage of the total workforce that is unemployed and actively seeking employment during the previous month.
💵 Average Hourly Earnings (8:30 AM ET) 💵: This metric indicates the month-over-month change in wages, providing insight into consumer income trends.
⚠️ Disclaimer: This information is for educational and informational purposes only and should not be construed as financial advice. Always consult with a professional financial advisor before making investment decisions.⚠️
📌 #trading #stockmarket #economy #news #trendtao #charting #technicalanalysis
Breakout in Organogenesis Holdings Inc...Chart is self explanatory. Levels of breakout, possible up-moves (where stock may find resistances) and support (close below which, setup will be invalidated) are clearly defined.
Disclaimer: This is for demonstration and educational purpose only. This is not buying or selling recommendations. Please consult your financial advisor before taking any trade.
Breakout in ADT Inc...Chart is self explanatory. Levels of breakout, possible up-moves (where stock may find resistances) and support (close below which, setup will be invalidated) are clearly defined.
Disclaimer: This is for demonstration and educational purpose only. This is not buying or selling recommendations. Please consult your financial advisor before taking any trade.
Bill Ackman: The Activist Investor Who Challenges the Status QuoHello Traders!
Today, we’re going to explore the trading and investment philosophy of one of the most successful activist investors in the world – Bill Ackman . Known for his bold moves and unapologetic approach, Ackman has built a reputation for making large, influential investments and actively working to restructure companies in order to create value. With his hedge fund, Pershing Square Capital Management , Ackman has turned millions into billions by taking concentrated positions in underperforming companies, often pushing for changes that he believes will improve shareholder value.
Bill Ackman’s Investment Strategy
Ackman’s investing philosophy is rooted in a few key principles that have guided his success:
Activist Investing: Ackman is known for buying large stakes in companies and pushing for significant changes. This often involves changes in management, strategy, or financial structure to unlock value. He doesn’t just buy stocks, he buys control to influence the direction of companies.
Concentrated Bets: Unlike most fund managers who diversify, Ackman makes concentrated investments, believing in a small number of high-conviction ideas. He typically goes big on the companies he believes will give the highest returns.
Long-Term Vision: While Ackman is an activist, he is also a long-term investor. He’s known to hold onto stocks for years as he works through his plans to improve the companies he invests in.
Thorough Research and Analysis: Before making any moves, Ackman ensures he has done comprehensive research. He’s known for his deep dives into a company’s fundamentals, industry trends, and potential catalysts for growth.
Notable Investments and Activist Moves
Ackman’s career has been built on several high-profile, successful investments. Here are some of his best-known plays:
Herbalife: One of his most controversial investments, Ackman shorted Herbalife, claiming the company was a pyramid scheme. Despite facing heavy opposition and pressure, Ackman stuck to his position, although ultimately the trade didn’t work out as he anticipated. It became a case study in risk and persistence.
Target: Ackman took a large position in Target, pushing for changes in the company’s real estate strategy and retail business. His work with Target helped to bring greater shareholder value.
Valeant Pharmaceuticals: Ackman’s investment in Valeant Pharmaceuticals initially gained massive attention. Despite the stock’s later troubles, his involvement in the company drew attention to the power of activism and led to changes in leadership at Valeant.
Chipotle Mexican Grill: Ackman has also invested in Chipotle, pushing for operational improvements and better management. His efforts have been instrumental in driving changes in the company’s strategy, helping the stock recover from earlier setbacks.
Risk Management and Position Sizing
When it comes to risk management, Ackman follows a few key strategies to minimize losses and maximize returns:
Concentration of Capital: Ackman often places large amounts of capital in a few high-conviction investments. This allows him to have a significant impact on the companies he invests in but also requires disciplined risk management and careful positioning.
Leverage and Shorting: Ackman has used leverage in some of his more aggressive plays, such as shorting positions in Herbalife, to maximize returns. This adds a level of risk, but when used correctly, it can significantly amplify his gains.
Focus on Catalyst-Driven Events: He places his investments based on company-specific catalysts like management changes, mergers, or restructurings. This allows him to predict when a stock will outperform or underperform.
What This Means for Investors
Bill Ackman’s approach to investing is not for the faint of heart. It involves big risks and big rewards. His activist investing style is about taking concentrated positions, being willing to fight for change, and holding onto those investments for the long haul.
For investors, there are valuable lessons to be learned from Ackman’s strategies:
Don’t be afraid to make big bets. If you believe in a company’s long-term potential, be prepared to back it with significant capital.
Know the companies you invest in. Ackman is famous for his in-depth research before making any move. This is a lesson for every investor – do your homework before making investment decisions.
Take a long-term view. While Ackman is an activist, he is also a patient investor. He understands that meaningful change takes time, and he’s willing to wait for the payoff.
Conclusion
Bill Ackman’s approach to investing has made him one of the most influential investors of his time. By focusing on concentrated bets, thoroughly researching companies, and taking an activist role, Ackman has proven that bold moves and long-term vision can lead to great success.
Have you followed any of Bill Ackman’s investments or strategies? Share your thoughts and experiences in the comments below! Let’s learn and grow together!
S&P 500 Daily Chart Analysis For Week of Feb 28, 2025Technical Analysis and Outlook:
In the recent weekly trading session, the S&P 500 did not succeed in retesting the Mean Resistance level of 6082. Instead, the index experienced a notable decline, reaching the Mean Support level of 5939 and narrowly approaching the Key Support level of 5827.
Following this downturn, a significant rebound occurred, resulting in the establishment of a new Mean Support level at 5860. The index is now positioned to target the Mean Resistance level of 5967. Should the index initiate an upward movement from its current level and successfully surpass the critical Mean Resistance of 5967, it may continue to rise toward the Mean Resistance level of 6032, potentially reaching the Key Resistance level of 6143.
Conversely, if the index declines from its present position, it may create a retest pullback to revisit the Mean Support level of 5860 before resuming further upward momentum.
Trump Pump. Trump Dump. Trading Family,
We had our Trump pump. Now, we are seeing a Trump dump. Tariffs and other geopolitical events are causing market uncertainty. Let's take a look at our charts to find out how much more pain we are in for. And, a positive sign. Smaller cap altcoins and many memecoins appear to be holding strong!
✌️ Stew