MyMI Options Play - AMZN CallsAMZN has recently broken it's current downtrend channel as identified but has also broken above and found closure/support above the 50% retracement from the $180 ATHs that it saw back in Nov. 2021.
I haven't purchased my long-term opts on this yet to see if a reversal in the current market push due to NVDA and other AI-Based movements that are holding up the markets. I expect some retracement at some point and potentially back to $114. From there I will look at the support we find back at that 50% retracement level ($114) and look for a long-term hold to back to the $140-$145s (if not higher).
TERM
NFLX - Rising Trend Channel [MID TERM]🔹NFLX is in a rising trend channel in the medium long term.
🔹NFLX broken up through resistance at 370.
🔹The volume balance is positive and strengthens the stock in the short term.
🔹Overall assessed as technically positive for the medium long term.
Chart Pattern;
🔹DT - Double Top | BEARISH | 🔴
🔹DB - Double Bottom | BULLISH | 🟢
🔹HNS - Head & Shoulder | BEARISH | 🔴
🔹REC - Rectangle | 🔵
🔹iHNS - inverse head & Shoulder | BULLISH | 🟢
Verify it first and believe later.
WavePoint ❤️
SPY in the long term is looking to be touching resistance
The bull run in 2020 was nothing more than a massive false breakout caused by artificial juicing of the markets by the FED and GOV.
From long term perspective, we see that SPY is current at the top of its regular trading range that was set back in 2009.
There has been a few false breakouts above and below the trend since 2009
The is showing the support and resistance trend lines are spreading appart over time indicating the market is clearly getting more volatile as time goes on.
CSCO - Rising Trend Channel [MID TERM]- CSCO shows strong development within a rising trend channel in the medium long term.
- CSCO is testing resistance at 49.40.
- This could give a negative reaction, but an upward breakthrough of 49.40 means a positive signal.
- CSCO is assessed as technically neutral for the medium long term.
*EP: Enter Price, SL: Support, TP: Take Profit, CL: Cut Loss, TF: Time Frame, RST: Resistance, RTS: Resistance to be Support LT TP: Long Term Target Price
*Chart Pattern:
DT - Double Top | BEARISH | RED
DB - Double Bottom | BULLISH | GREEN
HNS - Head & Shoulder | BEARISH | RED
REC - Rectangle | BLUE
iHNS - inverse head & Shoulder | BULLISH | GREEN
Verify it first and believe later.
WavePoint ❤️
BESI for the long run.As we can see on the chart, BESI has been moving within this long-term trend the past few years.
It recently has touched the lower trendline again which has been acting as support for a long time.
By looking at what BESI has done in the past few years and with those 2 trendlines in mind, we can expect BESI to be bullish for the next few years to come until it has reached the top trendline again.
2023 is THE year to invest in Bitcoin ??? (Benner Cycle)🚀🌟 2023: THE year to Invest in Bitcoin according to the Benner Cycle 🌟🚀
Hey there, crypto enthusiasts! 😄 If you're wondering whether 2023 is the right time to jump into the Bitcoin market, read on. In this article, we'll be exploring a fascinating concept called the Benner Cycle, which might just give us a clue about what's in store for Bitcoin this year and in the coming years.
📜 Who is Samuel Benner and what is the Benner Cycle? 📜
The Benner Cycle is a fascinating market prediction model developed by Samuel Benner, a 19th-century American farmer who turned his attention to market forecasting after he bankrupted in 1873. Wanting to learn more why this happened, he started to look at markets and observed cycles in commodity prices and discovered that specific timeframes tended to see major market movements. By studying these patterns, he managed to predict market highs and lows with surprising accuracy. 🎯
🔑 The Key Concepts of the Benner Cycle 🔑
The Benner Cycle is built on the idea that market movements follow predictable patterns over time. At the heart of the cycle are three key periods: 8, 9, and 10 years. Benner observed that market highs typically occurred at 8-year intervals, while lows happened at 9- or 10-year intervals. By identifying these patterns, Benner was able to forecast future market movements with uncanny precision. Just have a look at the image below to see how accurate it has been:🔮
You might be wondering how the 2008 financial crisis fits into the Benner Cycle, especially since 2007 was called as a top in the cycle. It's important to note that while the Benner Cycle can accurately predict general market trends, it's not a crystal ball that can foresee every market event. The 2008 crisis was an anomaly caused by factors beyond the scope of the Benner Cycle. However, the fact that the cycle called 2007 as a market top does lend credibility to its predictive powers. 🔮📈
🤔 Potential Criticisms and Limitations of the Benner Cycle 🤔
While the Benner Cycle has its fair share of supporters, it's not without its critics. Some argue that the cycle is too simplistic to predict the complexities of modern financial markets. Additionally, the crypto market is still relatively young and may not follow the same patterns as traditional markets. That being said, the Benner Cycle can still offer valuable insights for investors looking to navigate the ever-changing landscape of cryptocurrencies. 🧭
🔗 Applying the Benner Cycle to the Bitcoin Market 🔗
Now that we've got the basics covered, let's dive into how the Benner Cycle might apply to the Bitcoin market. Like any market, cryptocurrencies are subject to cycles of growth and decline. By studying historical price data and applying Benner's principles, we can potentially identify key turning points in the market and make more informed investment decisions. 🧠💡
Looking at the graph above, we can see that according to the Benner Cycle, 2023 should be the low of the markets and this suggests that we're on the cusp of a significant uptrend in the cryptocurrency market lasting till 2026. Additionally, with growing mainstream adoption and technological advancements, there's never been a better time to invest in Bitcoin. 💰🚀
In conclusion, 2023 might just be the perfect year to invest in Bitcoin, according to the Benner Cycle. By understanding this fascinating market prediction model and considering its implications for the cryptocurrency market, you'll be better equipped to make informed investment decisions. Remember, though, that no prediction model is foolproof, so always conduct thorough research and seek professional advice if needed.
⚠️ The above is not financial advice ⚠️
If you're considering entering the Bitcoin market in 2023, keep these tips in mind:
1️⃣ Do your own research : 📚 Don't rely solely on the Benner Cycle or any single market prediction model. Make sure to study a variety of sources and consult experts when making investment decisions.
2️⃣ Diversify your portfolio : 💼 Don't put all your eggs in one basket. Consider investing in more traditional assets as well to spread risk and maximize potential gains.
3️⃣ Set realistic expectations : 📊 Cryptocurrencies can be highly volatile, and there are no guarantees in the world of investing. Be prepared for potential losses and keep a long-term perspective. Only invest the funds you can afford to lose.
4️⃣ Stay informed : 📰 Keep up-to-date with the latest news, developments, and trends in the cryptocurrency market. This will help you make more informed decisions and stay ahead of the curve.
5️⃣ Have a plan : 🗺️ Develop a clear investment strategy and stick to it. This includes setting goals, defining your risk tolerance, and establishing a timeframe for your investments.
Thanks for reading till the end! You're a champ! 🏆🍾
If you found this post useful consider a like 👍🏽🚀 and a follow.
Share freely with anyone you think should read this! 📜
Oh, and surely let me know what do you think of the Benner Cycle and the prospect of 2023 being the start of a new rally in the comments below! Looking forward to reading your opinions!
Mr. Elliott 😍 BTC USD Whole Cycle.I'm sorry about my changing directions up n down being confused all the time.. I've worked hard on this one and read every single candle from the beginning of this entire cycle and this is the result.. Moon Boys! You're going beyond that.. Feel free to share and thanks to haters it couldn't have been done without your criticism specially thanks to my soul brothers team. Not a trading advice do your own ta thanks. I change my bias to up only for the life time PERIOD.
Bitcoin Buy Zone just triggered today 5/9/2022To all my friends,
I created this technique back in 2017. In May 2021 a year ago I published another article "Waiting for the next Bitcoin Buy Zone". Well today 5/9/2022 the Bitcoin Buy Zone just triggered.
You might want to scoop up some Bitcoin for the next few month and add it to your already Dollar Cost Average Strategy. Just Saying
Previous Buy Zones
Oct 2014 - Oct 2015: ($167- $230)
Nov 2018 - May 2019: ($3119 - $7195)
Mar 2020 - July 2020: ($4942 - $10261)
~S
Price/Earnings: amazing interpretation #2In my previous post , we started to analyze the most popular financial ratio in the world – Price / Earnings or P/E (particularly one of the options for interpreting it). I said that P/E can be defined as the amount of money that must be paid once in order to receive 1 monetary unit of diluted net income per year. For American companies, it will be in US dollars, for Indian companies it will be in rupees, etc.
In this post, I would like to analyze another interpretation of this financial ratio, which will allow you to look at P/E differently. To do this, let's look at the formula for calculating P/E again:
P/E = Capitalization / Diluted earnings
Now let's add some refinements to the formula:
P/E = Current capitalization / Diluted earnings for the last year (*)
(*) In my case, by year I mean the last 12 months.
Next, let's see what the Current capitalization and Diluted earnings for the last year are expressed in, for example, in an American company:
- Current capitalization is in $;
- Diluted earnings for the last year are in $/year.
As a result, we can write the following formula:
P/E = Current capitalization / Diluted earnings for the last year = $ / $ / year = N years (*)
(*) According to the basic rules of math, $ will be reduced by $, and we will be left with only the number of years.
It's very unusual, isn't it? It turns out that P/E can also be the number of years!
Yes, indeed, we can say that P/E is the number of years that a shareholder (investor) will need to wait in order to recoup their investments at the current price from the earnings flow, provided that the level of profit does not change .
Of course, the condition of an unchangeable level of profit is very unrealistic. It is rare to find a company that shows the same profit from year to year. Nevertheless, we have nothing more real than the current capitalization of the company and its latest profit. Everything else is just predictions and probable estimates.
It is also important to understand that during the purchase of shares, the investor fixates one of the P/E components - the price (P). Therefore, they only need to keep an eye on the earnings (E) and calculate their own P/E without paying attention to the current capitalization.
If the level of earnings increases since the purchase of shares, the investor's personal P/E will decrease, and, consequently, the number of years to wait for recoupment.
Another thing is when the earnings level, on the contrary, decreases – then an investor will face an increase in their P/E level and, consequently, an increase in the payback period of their own investments. In this case, of course, you have to think about the prospects of such an investment.
You can also argue that not all 100% of earnings are spent paying dividends, and therefore you can’t use the level of earnings to calculate the payback period of an investment. Yes, indeed: it is rare for a company to give all of its earnings to dividends. However, the lack of a proper dividend level is not a reason to change anything in the formula or this interpretation at all, because retained earnings are the main fundamental driver of a company's capitalization growth. And whatever the investor misses out on in terms of dividends, they can get it in the form of an increase in the value of the shares they bought.
Now, let's discuss how to interpret the obtained P/E value. Intuitively, the lower it is, the better. For example, if an investor bought shares at P/E = 100, it means that they will have to wait 100 years for their investment to pay off. That seems like a risky investment, doesn't it? Of course, one can hope for future earnings growth and, consequently, for a decrease in their personal P/E value. But what if it doesn’t happen?
Let me give you an example. For instance, you have bought a country house, and so now you have to get to work via country roads. You have an inexpensive off-road vehicle to do this task. It does its job well and takes you to work via a road that has nothing but potholes. Thus, you get the necessary positive effect this inexpensive thing provides. However, later you learn that they will build a high-speed highway in place of the rural road. And that is exactly what you have dreamed of! After hearing the news, you buy a Ferrari. Now, you will be able to get to work in 5 minutes instead of 30 minutes (and in such a nice car!) However, you have to leave your new sports car in the yard to wait until the road is built. A month later, the news came out that, due to the structure of the road, the highway would be built in a completely different location. A year later your off-road vehicle breaks down. Oh well, now you have to get into your Ferrari and swerve around the potholes. It is not hard to guess what is going to happen to your expensive car after a while. This way, your high expectations for the future road project turned out to be a disaster for your investment in the expensive car.
It works the same way with stock investments. If you only consider the company's future earnings forecast, you run the risk of being left alone with just the forecast instead of the earnings. Thus, P/E can serve as a measure of your risk. The higher the P/E value at the time you buy a stock, the more risk you take. But what is the acceptable level of P/E ?
Oddly enough, I think the answer to this question depends on your age. When you are just beginning your journey, life gives you an absolutely priceless resource, known as time. You can try, take risks, make mistakes, and then try again. That's what children do as they explore the world around them. Or when young people try out different jobs to find exactly what they like. You can use your time in the stock market in the same manner - by looking at companies with a P/E that suits your age.
The younger you are, the higher P/E level you can afford when selecting companies. Conversely, in my opinion, the older you are, the lower P/E level you can afford. To put it simply, you just don’t have as much time to wait for a return on your investment.
So, my point is, the stock market perception of a 20-year-old investor should differ from the perception of a 50-year-old investor. If the former can afford to invest with a high payback period, it may be too risky for the latter.
Now let's try to translate this reasoning into a specific algorithm.
First, let's see how many companies we are able to find in different P/E ranges. As an example, let's take the companies that are traded on the NYSE (April 2023).
As you can see from the table, the larger the P/E range, the more companies we can consider. The investor's task comes down to figuring out what P/E range is relevant to them in their current age. To do this, we need data on life expectancy in different countries. As an example, let's take the World Bank Group's 2020 data for several countries: Japan, India, China, Russia, Germany, Spain, the United States, and Brazil.
To understand which range of P/E values to choose, you need to subtract your current age from your life expectancy:
Life Expectancy - Your Current Age
I recommend focusing on the country where you expect to live most of your life.
Thus, for a 25-year-old male from the United States, the difference would be:
74,50 - 25 = 49,50
Which corresponds with a P/E range of 0 to 50.
For a 60-year-old woman from Japan, the difference would be:
87,74 - 60 = 27,74
Which corresponds with a P/E range of 0 to 30.
For a 70-year-old man from Russia, the difference would be:
66,49 - 70 = -3,51
In the case of a negative difference, the P/E range of 0 to 10 should be used.
It doesn’t matter which country's stocks you invest in if you expect to live most of your life in Japan, Russia, or the United States. P/E indicates time, and time flows the same for any company and for you.
So, this algorithm will allow you to easily calculate your acceptable range of P/E values. However, I want to caution you against making investment decisions based on this ratio alone. A low P/E value does not guarantee that you are free of risks . For example, sometimes the P/E level can drop significantly due to a decline in P (capitalization) because of extraordinary events, whose impact can only be seen in a future income statement (where we would learn the actual value of E - earnings).
Nevertheless, the P/E value is a good indicator of the payback period of your investment, which answers the question: when should you consider buying a company's stock? When the P/E value is in an acceptable range of values for you. But the P/E level doesn’t tell you what company to consider and what price to take. I will tell you about this in the next posts. See you soon!
Intel Long-Term Long (or short if it goes belly-up)For those who like regression channels, here is a chart of Intel going back to 1973. The channel has a Pearson coefficient of over 0.9, suggesting pertinence of the indicator. There has been consolidation around the bottom of the channel, ending with a good bullish H-A candle. You will be able to see a triple bottom on the weekly chart followed by a break-out of the consolidation. I am undecided as to whether to get in now or to wait for a little extra push. An upward move to about 70 seems possible.
Conversely, if price drops out of the channel below recent consolidation, look out below!
LINK - Strong Like A Castle 🏰Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst.
LINK has been stuck inside a big range for a couple of months now.
At least it hasn't melted like many altcoins during the bear run.
🏹 For the bulls to take over long-term , we need a break above the entire range / above 9.5
Meanwhile, since we are approaching the lower bound of the range, we will be looking for short-term buy setups.
📉 From a medium-term perspective, LINK is overall bullish trading inside the flat rising channel in red.
Moreover, the orange zone 6.5 is a strong support.
🏹 So the highlighted purple circle is a strong area to look for buy setups as it is the intersection of the orange support and lower red trendline. (acting as non-horizontal support)
As per my trading style:
As LINK approaches the lower purple circle zone, I will be looking for bullish reversal setups (like a double bottom pattern, trendline break , and so on...)
📚 Always follow your trading plan regarding entry, risk management, and trade management.
Good luck!
All Strategies Are Good; If Managed Properly!
~Rich
For Me MSFT Looks Bullish As It is Shown on the chart I think $MSFT is going to go up to reach 262$ in the Mid-term and to 280$ As a next target
Keep in mind that it has an earning forecast today ( and I think it will be positive ) as appears on the price action on the chart.
This is my Humble opinion
Please left a comment about What do you think
Price / Earnings: Interpretation #1In one of my first posts , I talked about the main idea of my investment strategy: buy great “things” during the sales season . This rule can be applied to any object of the material world: real estate, cars, clothes, food and, of course, shares of public companies.
However, a seemingly simple idea requires the ability to understand both the quality of “things” and their value. Suppose we have solved the issue with quality (*).
(*) A very bold assumption, I realize that. However, the following posts will cover this topic in more detail. Be a little patient.
So, we know the signs of a high-quality thing and are able to define it skilfully enough. But what about its cost?
"Easy-peasy!" you will say, "For example, I know that the Mercedes-Benz plant produces high-quality cars, so I should just find out the prices for a certain model in different car dealerships and choose the cheapest one."
"Great plan!" I will say. But what about shares of public companies? Even if you find a fundamentally strong company, how do you know if it is expensive or cheap?
Let's imagine that the company is also a machine. A machine that makes profit. It needs to be fed with resources, things are happening in there, some cogs are turning, and as a result we get earnings. This is its main goal and purpose.
Each machine has its own name, such as Apple or McDonald's. It has its own resources and mechanisms, but it produces one product – earnings.
Now let’s suppose that the capitalization of the company is the value of such a machine. Let's see how much Apple and McDonald's cost today:
Apple - $2.538 trillion
McDonald's - $202.552 billion
We see that Apple is more than 10 times more expensive than McDonald's. But is it really so from an investor's point of view?
The paradox is that we can't say for sure that Apple is 10 times more expensive than McDonald's until we divide each company's value by its earnings. Why exactly? Let's count and it will become clear:
Apple's diluted net income - $99.803 billion a year
McDonald's diluted net income - $6.177 billion a year
Now read this phrase slowly, and if necessary, several times: “The value is what we pay now. Earnings are what we get all the time” .
To understand how many dollars we need to pay now for the production of 1 dollar of profit a year, we need to divide the value of the company (its capitalization) by its annual profit. We get:
Apple - $25.43
McDonald’s - $32.79
It turns out that in order to get $ 1 earnings a year, for Apple we need to pay $25.43, and for McDonald's - $32.79. Wow!
Currently, I believe that Apple appears cheaper than McDonald's.
To remember this information better, imagine two machines that produce one-dollar bills at the same rate (once a year). In the case of an Apple machine, you pay $25.43 to issue this bill, and in the case of a McDonald’s machine, you pay $32.70. Which one will you choose?
So, if we remove the $ symbol from these numbers, we get the world's most famous financial ratio Price/Earnings or P/E . It shows how much we, as investors, need to pay for the production of 1 unit of annual profit. And pay only once.
There are two formulas for calculating this financial ratio:
1. P/E = Price of 1 share / Diluted EPS
2. P/E = Capitalization / Diluted Net Income
Whatever formula you use, the result will be the same. By the way, I mainly use the Diluted Net Income instead of the regular one in my calculations. So do not be confused if you see a formula with a Net Income – you can calculate it this way as well.
So, in the current publication, I have analyzed one of the interpretations of this financial ratio. But, in fact, there is another interpretation that I really like. It will help you realize which P/E level to choose for yourself. But more on that in the next post. See you!
Don't Sell Gold(XAU) in Short Term And Wait to Buy in Long TermIn the above Daily Chart, we've forecasted a marginal high of Gold(XAU) to around 2,060 and from this level we expect a correction ABC to around 1,800 where the smart buyers must appear with higher probabilities. In weekly(W) time frame, Gold(XAU) has a bullish structure .
FTNT - Breakout Ceiling Falling Trend- FTNT has broken through the ceiling of a falling trend channel in the medium long term.
- The stock has met the objective at 57 after a break of the double bottom formation.
- The price has now fallen, but the formation indicates further rise.
- The stock has support at 63 and resistance at 71.
- The RSI curve shows a rising trend, which could be an early signal of the start of a rising trend for the price as well.
- Overall assessed as technically positive for the medium long term.
*EP: Enter Price, SL: Support, TP: Take Profit, CL: Cut Loss, TF: Time Frame, RST: Resistance, RTS: Resistance to be Support LT TP: Long Term Target Price
Verify it first and believe later.
WavePoint ❤️
ITC
Open
244.00
Previous Close
242.50
UC Limit
266.75
LC Limit
218.25
Volume
24,823,291
VWAP
240.26
Mkt Cap (Rs. Cr.)
293,778
20D Avg Volume
33,726,752
20D Avg Delivery
12,283,897
Beta
0.72
Face Value
1
TTM EPS
11.30
TTM PE
21.10
Sector PE
22.78
Book Value Per Share
47.88
P/B
4.99
Dividend Yield
4.51
P/C
18.86
$NVDA AccumulationOne of the industries I'm looking to accumulate heavily in the bear market is AI and Tech. Nvidia is a leader of it's field and will be one of the main companies that rises from the ashes better and stronger. Nvidia went on a crazy run 6 years going from around 7USD to 300.
It's now down 50% from its ATH and like most stocks, I expect them to keep bleeding through 2023 and 2024. I'm a buyer below 100USD laddering down to 40USD-50USD.
I expect this stock to perform very well over the next decade.