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Hey it’s Sasha Evdakov, it is August 6, 2015. Welcome to the Rapid Recap. Right now it's actually 11:50 in the morning probably by the time this recap comes out I'll be around after noon 12:30 to 12:45 and we're actually over here in Canada so I'm trying to get this recap out before we go out on the boat or go for a hike.
We've been doing some fishing here on the lake been doing some kayaking canoeing just relaxing here over in the Ontario near Ottawa area. That's kind of what we're doing taking a little break, taking a little vacation but that doesn't mean you can't look at the market that doesn't mean you can't have positions in place and that doesn't mean you can't be prepared to take action when things break one way or the other.
Looking at this week's recap what we're going to cover is the Alignment of Multiple Things with in your Stock Chart so what I did actually a few days ago while we were on break and while we were on vacation was still taking a look at some critical charts and I posted a handful of charts because things have been setting up quite well in the chart space so I wanted to share with you some charts and there was 21 charts that I have posted and again even though this week we posted 21 charts just a couple days ago that doesn't mean the charts from the previous week or just to three weeks ago don't apply.
Netflix has been doing pretty well since the split here. We had this resistance line stop powered higher, another little consolidation powering higher. Netflix, from what I found always moves in a stair-step pattern so if you can catch one of these consolidation patterns on like a three-day chart or weekly chart or two-day chart even a daily chart but on a daily chart it looks a lot more messy but if you can catch one of those you pretty much ride it on a stair step pattern.
Right now it's a little bit overextended so we have a little pullback but if you're looking to get long into the stock if you can pick it up right here you know 116 that could be a nice place use that as a stop or even at the 104 level here because we have that gap right there, filled a little bit but I don't believe looking at it it's not fully filled so there's still some area of weakness just because it's been running up so quickly so fast.
Finally I want to get back to the Apple stock. One thing I do want to mention to you is that you want to always watch for things in alignment when you're looking at these stocks and these charts. A lot of people they always look at one thing specifically they look at one thing and they make their decision rather than looking at the big picture. Now if you've been watching the Rapid Recaps time and time again I've talked about this stock and I’ve talked about this here's our A to B, B to C, and C to D pattern and now we could be creating another little leg down whether this is another B to C Leg, for example another slight little pullback and then we power higher or it can come back and you know retest levels back here and stay there and isolate there.
So we'll see time will tell but you're always watching at how that stock is moving and because we've always had this A to B, B to C and C to D, now we're starting to build that next leg down you can already see that it's a little pullback.
Now we don't know if it's going to be a full retracement or a major pullback, just because these things are unpredictable but what you do know is that once you hit that projected move of C to D, you know that something new should happen whether that stock’s moving sideways whether that stock’s pulling back and already because it's not following this trend line, that trend line was broken you can see. That means that there's some weakness in the stock so you're always preparing for what's next and you're looking at multiple things.
When I'm trading, when I'm looking at these stocks, when I'm looking to get into these stocks I'm not looking at one thing specifically I'm not just looking at what's happening right here with these last two days or these last two things rather I’m looking at everything, I’m looking at what's been doing in the past on the monthly. I'm looking at overall how is that stock moving and behaving. How does that forest look does that forest look healthy or does it look weak, does it look cut down, has there been forest fires?
I’m looking into what's going on more recently you know what's been a strength, what's happening looking at it on the weekly and I’m looking and checking out the daily and now this is more of what what am I going to do with the trade you know now that I've seen the big picture what am I going to do what's happening what is it building for.
Here looking at this support line you can see we were waiting patiently and I've talked about this one multiple times just go and review the recaps we've looked at this level right here we've watched the come back to this level and we talked about it in the critical charts too for the safe play wait for it to clear here now if you were a little more aggressive if you have experience you definitely could have been trading it up here but really I always try to cater towards people on the safer side and right there that was your safer entry once it broke and you can see that looking at it after it broke that level broke the 200 day moving average and a trend line.
Now we have two things in our favor so we have this trend line right here this is our trend line that's one thing in our favor, the second thing in our favor is we have this 200-day moving average that was also broken. Look at this point right there where it was broken so that's two things in our favor, three things in our favor was it rejected this 20-day moving average right there, four things in our favor had rejections across the board at these levels so that's another thing in our favor and if we look at the overall on the monthly you can take a look at the chart you can see that are A to B, and B to C pattern so here's our A, A to B, B to C and C to D it pattern was nearly completed.
So when I see that our pattern was nearly completed that means we have to have some kind of consolidation or we have to have a slight little pullback and then we can power higher.
We have to have something that's happening in order to digest this long move and to digest this long move because that long move, that first one here was our digestion period so the same thing we had a long move and we need another, digestion period and all these things looking at it all these things are working together.
If you apply this concept in terms of NASCAR or racing you know when you're at the pit when you're standing and waiting at the pit to get your tires changed to get your fuel everything everybody needs to work together in order to seamlessly get out of that racing pit because if any one person holds that in that racer up or the driver up then everything else collapses then the driver has to wait and overall the team doesn't get a good score, doesn't get a good lap, doesn't get a good finish.
The same thing here you want to watch all these things. Multiple things to work together if you apply this concept to a domino rally similar to how all the dominoes are stacked and you know when you push one everything falls together with time you know this one hit that one and this one hits that one. They're all working together but if anyone is out of place then it stops the whole motion of all those dominoes the energy stops.
The same thing here everything the whole system has to work together and if you apply it to the human body the same thing you have to have your digestive system working together, you have to have your mental state working together, you have to have you know all the pieces of your heart working together properly in order for you to survive and live.
If anyone piece’s missing it’s going to be much more difficult or you'll be dead in simple terms you just have to have all those things all those components working together in order to maximize the effect or maximize the end result that you're trying to achieve.
With stocks then result that we're trying to achieve is prediction of our stock and where it's heading so in here again we're watching how are multiple things setup so I'll give you a second example so here we have our weekly chart we’re looking at the 20 day moving average. You can see the stock is under the 20 day moving average right here.
The next thing stop comes up it rejects at the 20 day moving average. We’re also looking at the volume right here these volume bars. So even if we didn't get into the stock at this point right here at any one of these areas that's ok because there's always another set up there's always another trade and we're looking at this line of support. Now we have one thing in our favor we have these volume things in our favor that's two things. We have this support line that's three things and the stock breaking right here that's four things on heavy volume that's five things. So many things are in my favor in order to work for my predicted result or end games.
Again, you want to have multiple things working together in order to get your effect in order to get your end result and this applies not just to stocks but to everything you do into life into your health into your finances into your relationships you know if you if you're in a relationship and you just have one thing in common in terms of working together and the only thing that you have in common is that you like to go out and play basketball.
If you don't have the communication side of that relationship, if you don't have you know the agreement part the negotiation part you know splitting the difference chores if you don't have all those things working together that relationship is more likely to be doomed.
The same thing, multiple things in anything you do need to be working together in order to have a great successful outcome.
I hope you had a good lesson this week from the Rapid Recap we covered a handful of stocks again take a look at those charts be mindful and be patient on the market. Overall right now we're positioning more for the short side and that's where we're at especially with Apple over here and GMCR as well but remember that these stocks and any stocks really for that matter you can come back retest those levels be prepared and then roll back over so they played these mindful tricks on you during their movements, during the way that they breathe in the way that they behave.
You have to be knowledgeable enough and know them enough in order to spot these patterns in order to spot the way that they act and behave just like knowing your best friend you know whether they're going to show up on time or they're usually late. You know if they're allergic to certain types of foods the same thing with stocks once you know how they act behave how they move it makes things a lot easier alright.
Thanks again for joining me I hope you had a great week so far we're going to go out actually right now and go do some kayaking canoeing do a little woodworking here on some things and probably go take a hike. So we're in Canada but I'm still posting a lot of the Recaps, were posting a lot of the critical charts. Thanks again for joining me for sticking around.
If you have any questions feel free to email me about any of the things that we talked about if you're having trouble with support and resistance if you're having trouble about spotting ABCD pattern just go ahead either fill out the form on the website or if you have my email directly to send it out may take me a few days to get back to you but nevertheless I usually oftentimes do so.
Just make your question nice and clear and specific and if it's related to you know learning about your stocks learning about reading charts then I'd be happy to answer any of those kinds of questions so thanks again and I will see you next week.