Comments on: Stock Market Internals 7-18-23

By: trade0039

trade0039 — Wed, 19 Jul 2023 14:26:30 +0000

In reply to rsotc. Thanks for the reply!

By: rsotc

rsotc — Wed, 19 Jul 2023 14:14:59 +0000

In reply to trade0039. What your missing is the fact that the bulk of the returns of the S&P 500 & especially the Nasdaq 100 weren't due to the Big 7 posting huge gains with the remaining 93 stocks falling or all staying flat, rather those other 93 or so, collectively underperformed and more importantly, on those that have posted nice gains YTD (as you highlighted above), their weightings were so small they hardly moved the needed regarding their contribution to the performance of the indexes. Also note the breadth statistics that I covered in this video. Those show the poor market breadth during most of the gains in the indexes so far in 2023, especially compared with market gains following previous big corrections & bear markets in the past (as highlighted in the video)

By: rsotc

rsotc — Wed, 19 Jul 2023 13:58:50 +0000

In reply to trade0039. I'm a huge proponent of adjusting one's position size commensurate with the expected volatility & gain/loss potential but I have no idea where you came up with numbers that would support at position in QQQ being 25x (2500%) larger than a position in SIRI. A penny stock, maybe, but SIRI is $19.2B company & a component of the Nasdaq 100 which consists of the 100 largest companies within the universe of the Nasdaq Composite.. the creme de la creme, if you will. The point I've been trying to impress for the past 6 weeks or so was that both the technicals (bullish divergences, oversold or at least not extreme overbought conditions as with the Big 7 tech stocks, well-defined downtrend lines/price resistance/bullish chart patterns in which to trigger objective long entries) as well as the upside potential vs. downside risk (with reasonable stops inline with the price target(s)), was that many (those highlighted, not all) of the stocks the lower tier of the Nasdaq 100 were some of the best looking trading opps & collectively, that very much has been the case. Additionally, QQQ or /NQ hasn't & won't trigger the next sell signal for a typical swing or trend trade on the short side until A) That 60-minute uptrend line is clearly taken out and B) The majority of the Big 7 trigger sell signals on solid breaks below their recently highlighted support levels.

By: seasix

seasix — Wed, 19 Jul 2023 13:47:58 +0000

Hope no one took on Randy’s CVNA short.

By: devnat

devnat — Wed, 19 Jul 2023 03:06:15 +0000

Randy
I will give this to you… You are a man with conviction! A little stubborn, may be? I hope you are proven right very soon… Good Luck!

By: trade0039

trade0039 — Wed, 19 Jul 2023 00:50:48 +0000

In reply to trade0039. Remaining attachments

By: trade0039

trade0039 — Wed, 19 Jul 2023 00:50:26 +0000

In reply to trade0039.

Just to let you know, its not only the top 7 stocks that did the heavy lifting, its more than that…

313 Stocks in S&P500 has positive return YTD!

Pease see the attachments…

By: trade0039

trade0039 — Wed, 19 Jul 2023 00:03:53 +0000

Honestly Randy I didn’t watch this video of your this time simply because you are going to mention that its still making divergent high!

About the last comment you made about SIR went up 50%. Let me show you the math…

In SIRI we cannot put more than 2% of your portfolio.
Lets assume you have 100K account.
2% of 100K is $2000 in SIRI.
50% up means you made $1000

While trading QQQ, my size would be atleast 50% of 100K
Meaning $50K in QQQ
If QQQ goes down 5%, I am down $2500
If I trade TQQQ, I will be down 17% which in amount is $8500

I hope you understand where I am going…