You want 2019 stock market predictions?
Everyone lines up their forecasts every year, trying to make bold predictions. There are many analysts, institutions, money managers, and traders who want to make a name for themselves with crystal ball predictions.
After 20+ years trading the market, I have learned many things. One of them is that "market predictions" make you look stupid. You have the same odds in Vegas, with trying to predict the stock market. Why would you trade those odds? Well, we don’t. Instead we search thousands of chart patterns looking for price pattern repetition. We call this Historical Chart Pattern Comparison (HCPC). https://fitzstock.com/hcpc
The stock market repeats itself with psychology and emotion over time. This trading behavior is incorporated into specific price patterns (some listed below).
-MA top (double top, with lower high)
- Head and shoulders (topping pattern)
-Break below the uptrend line (which we saw in October 2018, when the S&P 500 broke below 2900, giving a strong sell signal, where I went all cash)
-WV bottom (double bottom, higher low)- we saw this pattern with Apple in 2013 at $60/share, then the stock went up 300%
-Bull flag above the downtrend line- we saw this pattern develop 11/2016 where I went “ALL IN” long with leverage ETFs (SPXL & TQQQ)
So, getting back to your "market predictions".
Fitzstock Charts nailed the charts in early 2019 with the 2008 historical chart pattern comparison, which called for a huge rally to test the 50 day simple moving average. Using this historical chart pattern comparison analog we were able to capitalize on the +10% move off the lows in the stock market, and had 20 different stock option DOUBLE (up over 100%).
You do not need to predict the stock market, but rather trade the TREND, with historical price pattern comparisons. We incorporate our Rules of Engagement (ROE) with these pattern repetitions and capitalize on huge moves in the stock market. All of our entries are listed on our daily engagement spreadsheet focus list, with calculated entries and defined risk. With this structured methodology we have developed a +90% club with over 900 different stock options that have doubled, while keeping our winning percentage >75%.
If you are under performing the stock market, or just want to learn how to trade with a structured, disciplined and proven methodology then consider upgrading to Fitzstock Charts.
What are FANG stocks, and why do we care?
FANG= acronym for high flying tech stocks Facebook, Amazon, Netflix and Google (now Alphabet).
FAANG =FB, AAPL, AMZN, NFLX, GOOGL
These stocks trade on the NASDAQ and are generally more volatile than the average stock.
Beta measures a stock’s volatility in relation to the market. The market has a Beta of 1.0.
Stocks that move more than the market will generally have a Beta >1.0
This Beta is a indicator of risk, and is why many aggressive traders look to FANG stocks to outperform the stock market.
Here is a list of the FANG stock's Beta
Do you want Alpha? Then you need Beta!
Alpha gauges the performance of your investments and trades against the market index (benchmark). The excess return of your investment and trades relative to the benchmark index is your Alpha. Most Hedge funds use the S&P 500 as their benchmark, and will trade options and S&P 500 futures (ES) to play catch up for performance.
Another way to get Alpha from Beta is to use stock options. When these FANG stocks TREND, they pay huge with stock options. We use Rules of Engagement(ROE) to trade TREND, and implement "in the money" stock options to avoid decay. Theta measures this rate of decline in the value of an option due to the passage of time. If everything is held constant, an option will lose its value as it moves closer to maturity. This is why it is important to recognize the TREND, as you need to have the right direction with your trades using a decaying asset.
Using Rules of Engagement, identifying market TREND, and incorporating Historical Chart Pattern Comparison (HCPC) gives you the edge in trading. Fitzstock Charts has developed an impeccable track record of outperforming the stock market with ROE, where our winning percentage has consistently been >75% since the launch of the service in 2013. In addition, we have developed the +90% club where over 900 stock options have doubled from our engaged entries. https://fitzstock.com/performance-2/
The FAANG stocks have been in our 90% club 119 different times with stock options doubling from our entry price.
FB- 23 different trades up >90% from our entry (some over +400%)
AAPL- 20 different trades up >90% from our entry (some over +300%)
AMZN-37 different trades up >90% from our entry (some over +290%)
NFLX- 20 different trades up >90% from our entry (some over +390%)
GOOGL-19 different trades up >90% from our entry (some over +200%)
We use a proven methodology with calculated entries and defined risk.
Learn how to trade the FANG names using stocks and options with Fitzstock Charts.
If you are underperforming the stocks market with your trades or investments, it is never too late to upgrade.
Fitzstock Charts, LLC