WM - Cleaning Up The GarbageXLI is a sector that has recently broken out, looking within that sector, WM seems to be showing some bullish potential. The stock is trying to successfully bounce off a test of the 200-day EMA line. Any continued strength will push the price back above the 10-day EMA line. The stock is also exiting an oversold condition.
I am targeting the $115 & the $120 price levels as they are the 100% & 161.8% Fibonacci Extension levels.
WM
WM Put SpreadI'm putting a put spread on WM since it seems to be in a downtrend even though its not strong it has hints of bearishness with divergences on RSI and OBV
Spread cost is $1.35 Exp Oct 18, 115/110
I'm trying a 3 week option instead because I'm testing it I seem to be hitting my targets sooner than later so this may become the norm if the tests work out.
$1.35 Cost/ Max profit is $1.825/$3.175 Cost as Sale
Max loss is $101 which is sold in the last week of option on monday the 14th if the option plan is a failure.
WM Approaching Support, Potential Bounce!WM is approaching our first support at 83.77 (horizontal overlap support, 23.6%, 76.4% fibonacci retracement, 100% fibonacci extension) where a strong bounce might occur above this level pushing price up to our major resistance at 57.23 (horizontal pullback resistance, 61.8% fibonacci extension, 61.8% fibonacci retracement).
Stochastic (21,5,3) is also approaching support and we might see a corresponding rise in price.
WM approaching support, potential bounce! WM is approaching our first support level at 85.98 (100% Fibonacci extension, 61.8% Fibonacci retracement, ascending channel’s support) where a strong bounce might occur above this level pushing price up to our major resistance at 93.71 (horizontal swing high resistance, 61.8% Fibonacci extension).
Stochastic (21,5,3) is also approaching support where we might see a corresponding bounce in price.
Waste Management (WM) Possible Flag or Pennant PatternI am not licensed or certified by any individual or institution to give financial advice. I am not a professional Stock trader.
Waste Management (Ticker: WM) is in a possible Flag or Pennant. I think it's near the end and about to get squeezed out one way or another, but I don't know if it will be Bullish or Bearish. You can see the trending Resistance Line it almost hit today. I expect it to hit and possibly go through that (at least temporarily) on the next trading day. If it does break that, the 100 Day Simple Moving Average is sitting at $85.09 and might push it back down. I have two trending Support Lines because it has used both of those in the past, either with a candle body or a low wick. The blue horizontal dotted line is a horizontal Support drawn off a Resistance from October 03, 2017 and a Support from February 08, 2018. I'm not currently in any position with WM. I don't have an exact guess of what it will do over the next couple of days other than what I've drawn, and what I've summarized for you to read. If you enter a position, or you're in one right now, let me know what position (Option, Spread, Stock, etc.) and how it works for you.
Waste Management, WM, BearishI am not licensed or certified by any individual or institution to give financial advice. I am not a professional Stock trader.
Waste Management is Bearish. It is in a downtrend. The purple line angling down on the highs is the resistance line I have drawn for the downtrend. I have already purchased a Put (as you may be able to see on my notes on the screen) and am looking at it reaching the 200 Day Exponential Moving Average (EMA), which is sitting at $81.40 as I'm writing this at 1:40pm EST on April 24, 2018. If it goes past the 200 Day EMA, better for me; but if it hits that as support and decides to go either up or sideways I'll probably settle for my profit and see what the Stock decides to do from there. Let me know if you have any questions.
Overweight in Utilities & InfrastructureI like investing in utilities. More importantly I like investing in utilities with the type of infrastructure I consider to be a staple of domestic life. What do I mean?
Water Utilities ( CWT @ 1.61% Yield)
Waste Utilities ( WM @ 1.92% Yield)
Recycling Utilities ( RSG @ 2.02% Yield)
Power ( NRG @ 0.44%)
Why?
It certainly does make me feel good. Its easy to hold on to long term investments when you're rather certain you're doing the right thing (NRG is heavy renewables). We know pretty quickly that the suburban life of city dwellers is greatly dependent on the services which these types of companies provide. Anyone more familiar with these types of companies know that their services are typically maintained and required by small and large business alike, with residential subscriptions being the smaller portion. Cities, Housing developments, Contractors, Builders, Military, and Retail stores all utilize these services. Others do as well, but an exhaustive list would certainly take too long.
Why is the future brighter than the past?
The U.S. is amidst a budget constraint, and is fighting for every penny in order to stay open. Amongst the items up for discussion are Immigration, Border Protection, National Security, and certainly others are sneaking in as well. One item which has been on the docket for a long time and has met little debate.
Infrastructure Spending.
This is the item investors should be paying attention to. This market is pricing in more and more premium on Technology returns. Biomed's continue to be strong, and energy has been untrustworthy up to this point. The one area that continues to pump aggressive dividends, and is growing at an astounding rate, is municipal use utilities. Today we take a look at the chart of Waste Management (A waste water, trash collection, and recycling company) compared with FIW an ETF made up of Water Utilities, and measure their performance vs. the S&P 500. The results certainly warrant a look at the "boring" "safe" "low return" investment in these sectors.
Longs must maintain Discipline.
While I am bullish on this industry, and I do believe these sectors offer great protection from corrections in the current market - I also must exercise caution. A pullback makes complete sense. From a technical standpoint we can see the WM and FIW cycle has pullbacks that retrace to the previous fractal, before extending to touch. I doubt that pattern will break here. We also see that we are moving towards a fibonacci resistance arc. It's only a matter of time before WM (and FIW for that matter) touch resistance. Why is this important? This is important because we must maintain our discipline. We must remember to rebalance our portfolio. We should be slowly selling off and taking gains, and if you're like me - waiting for the pullback. I typically like to do so after getting dividends (these stocks are great dividend payers) and so you will need to do some fundamental analysis on your portfolio's balance in that regard.
Recommendation: Set a series of trailing stops. One for 10%, another for 40% and finally 50% of your position. The idea being to exit in waves in case of corrections of varying scales. Perhaps 10% on a 5% retrace. 40% on a 20% retrace. 50% on a 35% retrace. This can protect your investment, and help you slowly exit from a product. It keeps you nimble, and can help re-balance your portfolio.
HOMEWORK IDEA:
When rebalancing take a look at reinvesting a portion into the same sector albeit, in another market.
Research VEOEY, a European company which ALSO participates in the US Domestic market, and meets many of the criteria of these other securities. By doing this, you will slowly diversify your portfolio into more markets as you continue to build a robust investment in a sector.
Thanks for reading!
The Bear Massacre Ensues ! The Bears Call the Spirit of SFBWe eagerly await the glimpse of the Short Faced Bear as the trampling of the ancient Wooly Mammoth ensues with the Cats on his side they are slaughtering the bears BUT !! a glimpse of their wild card (SFB - Deadly Cup Factory) will turn the tide.
Long with the flow of the bulls for now Heartbeaters !!
Remember to zoom in and out and take profit on all fibs,
We are accumulating cheap USD in the bullish market.. When SFB appears or the bulls stumble on her lair be wairy and switch to BTC accumulation strategies that we will have to develop along the way..
BWF = Butterfly wing flap, i.e. things are going to get noisy !! Her target has been raised to as much as 17k but I've seen them blow the socks off a diamter rule..
Current position is HOLD like a Mother Wing Flap tells you !! lol