Tuesday, November 7, 2017

From real-time industry rotation to profitable trades

From the desk of Sagar Nandi and Superior Profit.

Traders used to read about Sector and Industry Rotation in newspapers or subscribe to delayed information based on after the fact data. Not anymore. With CUE Edge, you may observe Sector and Industry Rotation happening in Real-Time in front of your eyes using Heat Map and Ranking Table.

Real-Time Sector & Industry Rotation at your fingertips

You see Sector and Industry Rotation in Real-Time using Heat Map and Ranking Table. You may recognize the exact turning point of an Industry by seeing it change color from magenta to cyan (or vice versa). All done using Visual Analysis.

CUE Edge analyzes eleven Sectors and more than one hundred seventy Industries across twelve monthly review periods and more frequently for recent times across ten days, five days, two days and even one day (in Real-Time). It assigns Ranks for each of the analysis periods: 1 to the best performer and large number to the worst performer.

CUE Edge also applies a Heat-Map to the Ranking table that helps you visually, unambiguously and quickly identify which Sector or Industry is strong. Which one is weak. Which one is transitioning from strength to weakness and vice versa. Magenta represents weakness and cyan represents power.

The Pace Ranks at the right edge of the table indicates how fast a laggard is catching up (cyan color shows rapid strengthening ) or a leader is falling behind (magenta color suggests quick deterioration).

From this Ranking and Heat Map table you know where you may look for Long trades (i.e., in strong or strengthening Sector-Industry) and where you may look for Shorts (i.e., in weak or weakening Sector-Industry).

starting at the top: Sector analysis

Which Sector was going up rapidly for a long time? Information Technology.

Is it weakening now? Yes.

Which Sector was weak earlier and is gaining strength? Energy.

You instantly and in Real-Time can answer these and many similar questions that can add extremely valuable edges to your trades.

Knowing the above facts, you would like to slow down on buying Technology Stocks. Probably book some profit or, at a minimum, use Protect Profit Stop.

For taking new Longs, you would look into Energy Sector, looking for potential Bottom Fishing Opportunities. However, you would like to do that in Fundamentally Strong Stocks. Isn't it? You can do precisely that by effortlessly drilling down from Energy Sector to its Industries to the Stocks and do a Peer Analysis to identify the most reliable Stocks.

Drilling down from sector to industry

Well, Energy as a Sector is going up.

Why don't we find the exact Industry in this Sector that is going to give you the best Long trades?

Just a click of the mouse. And you can view only the Energy Sector's Industries and identify the one best positioned for taking a Stock Buy Position.

Which Industry would that be? Oil & Gas Exploration and Production.

And all it takes is a glance at the drilled-down Industries and look for the cyan color over the five days period. Oil & Gas Exploration and Production Industry is having the best score of all Energy Industries. You may also visually identify the strength from the cyan color.

pinpoint the exact industry for best Long/Short trades

If you did not want to drill down from Sector, that is also perfectly alright.

After all, there are hundreds of Industries and all you might want is to identify which one is strong and look for Stocks to buy there. See which Industries are weak and look for Short opportunities in them.

You can of course do that in CUE Edge.

Using its Real-Time analytics, you see that Broadcasting had been weak for long and is still weak. Well, the best Short opportunities have passed. And the Long opportunities are not ready yet. You may keep an eye on the Industry to see if its starts to turn from magenta to cyan. That might give some Bottom Fishing opportunity.  Wait for that. That day will come when Broadcasting turns cyan. And CUE Edge will show that in Real-Time.

On the other hand, Construction Machinery & Heavy Trucks is an Industry that was strong before (cyan) and is becoming weak. It may be time to protect profit in any Long position in this Industry.

Do you take Short trades? Then it may be time to drill down to the Stocks in this Industry and look for the Fundamentally Weakest Stocks. You can do that in CUE Edge of course.

Drill down from industry to STRONG/WEAK stocks in secs

Another mouse click. And in seconds you can identify the Fundamentally weakest Stocks in this weakening Industry.

The Vital Statistics tab calculates and puts together all the key and only the essential Fundamental parameters of the Stocks in an Industry. Vital provides Scores across multiple dimensions and applies consistent color coding to let you quickly carry out a Visual Peer Analysis and identify the strong and weak Stocks.

Magenta and Low Score Value is weak. Cyan and High Score Value is strong. It is that simple.

TEX (Terex Corp) is undoubtedly one of the weakest. It is overvalued, recognized instantly by magenta color and low Score in the Relative Valuation Score. It is having poor Growth relative to Peers - as is known from the magenta color across the EPS and Revenue Growth columns along with Low Scores.

It is also near 52 Week High. Would it not be nice to be able to Short the Stock at such high level?

At a minimum, looking at the Industry changing color from cyan to magenta and seeing this Stock Overvalued and having poor Growth, one would book profit or use Stop Order to protect profit.

There is more insight in this Vital tab. The shaded backdrop shows that Growth is in fact negative. And you get the prize for guessing it right. You can drill down to see the exact growth data - visually again.

Analyze key fundamentals using visual data

Growth is one but not the only area of Fundamentals that you can drill down.

You can see Performance data and conduct Visual Peer Comparison across multiple periods from as long as one year to as recent as today.

You can see Stocks' Fundamental Valuation parameters and compare Stocks in the same Industry.

There are other insights also that you may get from CUE Edge.

For now, if we focus on the Growth of TEX, we see that its Growth is slowing down and has become negative in recent years. Not a time where you would like to add to already existing Long positions. You may start to consider booking profit. Or even look for Short?

truly highest probability long & Short term trades

There you have it.

You are now able to drill down from Sector to Industry. And then from Industry to Stocks and get a comprehensive insight from Fundamental Ranking and Peer Analysis of the Stocks.  Delivered by CUE Edge. Powered by the reliable data from XENITH.

What is the result? You can catch the move in an Industry well ahead of others. Be it in the Long Direction or the Short Direction. Finding them just at the moment they start to turn up or down and then riding them until the trend reverses; that is the Industry rotation is complete.

Using this Unique yet, Easy to Use Visual Tool you are also able to decide in minutes if a Stock meets your standard for Long Term Holding. Or is it merely a Short-Term Play as a Swing Trade. You can see if a Stock is Overvalued or Undervalued. Is it having higher or lower Growth relative to peers? And much more.

For Swing Trading, you can take Longs only in strong Industries and in Fundamentally strong Stocks. And take Short Trades in weak Industries and Fundamentally weak Stocks.

Using this unique and multi-faceted CUE Edge, you can trade with a lot more confidence, knowing that Sector-Industry strength/weakness, as well as the Stock's Fundamental strength/weakness, are aligned with your trade.

Finally, of course, you would like only to Buy a Stock that is going up. And Short a Stock (including TEX) that is undoubtedly going down. For that, you may use CUE Charts Technical System and its unambiguous checklists to identify a trade setup at the right edge of the chart. You may refer to our Education Center for more information on that.

And if you are those who would rather watch a video than reading detail books, these Weekly Roundup Videos will show you CUE Edge and CUE Charts in action on Live Market.

Monday, October 30, 2017

Top Market Timer Mark Leibovit takes a look at Twitter

From the desk of Top Market Timer Mark Leibovit:

After consolidating for two years, Twitter (TWTR) appears to be in the early stages of a significant upside move.  The weekly chart displays Positive Volume Reversals (VRs) on August 21 and October 2.  I full anticipate TWTR to clear the 25.25 high from October 3, 2016 and push next to the 29-30 area. Next upside target is 39.00.


Monday, August 21, 2017

Mark Leibovit takes a look at TSLA

From the desk of Top Market Timer Mark Leibovit:

TESLA -TSLA has been a great trading vehicle for quite some time, but in recent weeks we honed in on  the short-side a couple of times using my Volume Reversal tool as a guide.

Here are the general guidelines.  The chart is simple. It displays the 50 day moving average in blue, the 200 day moving average in green, my VR chart and a 5/3/3 stochastic.  The volume bars at the bottom are color coded to match the VR chart.  As a general rule, I use a rising 5/3/3 stochastic as confirmation of a Positive Leibovit Volume Reversal and a declining 5/3/3 stochastic as confirmation of a Negative Leibovit Volume Reversal.  

On June 26, a Negative Leibovit Volume Reversal and a declining 5/3/3 stochastic perfectly intersected setting up a short-sale or put buying opportunity.  If you scan the chart, you will notice good correlation between the Negative and Positive signals and subsequent price action.  We even look at the weekly chart.  Pretty good correlation there too!  Check it out.

Friday, July 28, 2017

An Amazing Technique for EUR/USD from Domistock's Technical Rating System

Domistock Tools Used: Fast Dominant Hedging Signal System, Auto-drawn Support/ Resistance Lines & Trendlines, Trading Strategies - Tools Exploration, DomiStock’s Technical Rating System
When EUR/USD gets an A rating on a daily chart it attracts the portfolio optimizers and the trading algorithms of the leading investment funds. When it gets an A rating on an intraday chart it attracts trading algorithms of more speculative funds.
When it gets an A rating on both a daily and an intraday chart this means that both the leading investment funds and speculators are looking for opportunities to long EUR/USD.
And one of the best opportunities is when it gets deflated. Then it becomes a candidate for DomiStock’s “Long the deflated winner” strategy. This strategy brought some amazing profit in the last 3 sessions on the 60 min chart of EUR/USD, where the rating was an A and it got a price deflation alert three times, marking two major intraday bottoms.
The “Long the deflated winner” gets a “go long” confirmation when there are either dominant or hedging “buy” orders. And that was the case for both of EUR/USD’s rallies while during it’s correction move the “sell” orders where the dominant ones, as sawn from the Dominant & Hedging Signal System.
It’s important to remember that DomiStock’s tools are made for the modern market ecosystem where over 90% of trading is done automatically.

Thursday, July 20, 2017

Confirmed intraday trade with DomiStock’s “Long the deflated winner” strategy

Domistock Tools Used: Dual Dominant Hedging Signal System, Fast Dominant Hedging Signal System, Trading Strategies - Tools Exploration, Inflated/Deflated Alert, DomiStock’s Technical Rating System
In my previous post, I demonstrated one money making trading technique I use with both daily and intraday charts. It is one of DomiStock’s automated strategies (there is an exploration that scans for plenty different techniques and informs the trader which one is the best at any given time) and it's called the ““Long the deflated winner” strategy.
It involves an A rated security (A= winner security) that becomes deflated (It may or may not have a dominant or hedging up signal – this means that DomiStock spots incoming buying orders, either dominant or hedging ones – ). SPY was a candidate for this strategy today and that was the message on my previous post “Live: Intraday profit from DomiStock’s “Long the deflated winner” strategy’.
And it worked like a charm. On the circle is the price deflation alert DomiStock produced while SPY was still falling. That alert came as SPY had a confirmed A intraday rating (AB). From that point and on SPY moved higher. So why does this work? Who bought at that specific hour DomiStock marked SPY as deflated?
It all comes down to how the modern market ecosystem where 90% and more of the trading is algorithmic. If you check the daily technical rating of SPY you will see that its a solid AA. That is a quantitative rating similar to those the leading global funds use. When a trading algorithm of an investment fund’s portfolio optimizer sees that a security has an A rating but that has also become deflated when measured with historical data, it turns on its buying mode and adds to its current position. A position that since that moment was hedged with selling or short orders. And all that happens automatically. DomiStock’s innovative tools monitor that in real time and inform the trader with on chart and of chart tools.
And then it moves on tp automatically plot the new support and resistance levels, the trend lines and much more.

Like this article?  Follow the Domistock blog for multiple stories just like this daily.  

Thursday, July 13, 2017

CUE 360 Degrees Analysis of Apparel & Accessories Stocks

From the desk of Sagar Nandi and Superior Profit:

The possibility of these Long and Short trades was shared in Superior Profit Traders Community a few days ago.

At that time we had a profitable trade in Finish Line (FINL), a Stock that we had analyzed in Weekly Market Roundups as Fundamentally Strong and at Optimal Price. We had used 360 Degrees Analysis for Finish Line at that time.

Here we provide the follow up in detail to the possible Long and Short Trade-Ideas. By joining the Traders Community, you could have a heads up on the trades probably!

​We begin our 360 Degrees Analysis with CUE Edge Industry Analyst. It calculates the performance of 160 Industry Groups across multiple review periods and assigns Ranks and Heat Map Colors that instantly helps us see which Industries are getting stronger and which ones are getting weaker. Reading the data is easy. Magenta color means weakness. Cyan represents strength.

From the easy to read Visual Heat Map, we can instantly see the following:

1) Apparel Industry was languishing at the bottom for many months, with some of the worst ranks (160 being the worst possible rank among the 160 Industry Groups). Today, on 12th July 2017, it improved rank from 131 to 108.

2) Clothing and Accessories Industry was weak 12 months ago. During the month 1 to month 5, it tried to improve a bit. In the most recent periods, this Industry has again declined in Rank, indicated by the magenta color in the times from 10 days to 1 day.

What about their Fundamentals? We have a look at CUE Vital Scorecard for that. For CUE Vital Fundamental scoring, green and blue means strength and magenta, red represents weakness. Higher scores mean the Stocks is stronger than others in the Peer Group.

From Visual Scorecard, we can instantly see that LB (L Brands) is priced optimally and has strong fundamentals at the current price. And COH (Coach) is overpriced and poorer (than LB) earnings quality.

What about their Technical Analysis view? We use CUE Global for that.

LB dropped along with the Apparel Industry since Dec 2016 as seen from the CUE Hop On Daily chart. At the right edge, it stopped going down after exhausting down move that began in July 2017.

Technically, LB may give a possible Bounce Long Trade Setup. You may check the Unambiguous Checklists of CUE Trading System to pinpoint the Entry of either a Swing Long Trade or even a Long Term Investment. We have already seen from CUE Vital analysis that LB is fundamentally strong - this is our preference for Long Term Investing.

You may also keep an eye on Apparel Retailers Industry Rank from CUE Edge in coming days to add more probability of success to your Long Position's favor. That is, Buying LB if the Stock goes up and the Industry also shows strength. 

Contrary to L Brands, Coach (COH) had a nice rally since Dec 2016. But now it is looking a bit tired. That, along with its weak fundamentals and the Industry's (Clothing and Accessories) weakness means one may consider booking profit or at least protect profit using Stop Order. CUE Vital Fundamental showed it is Overpriced!

Short Traders may even look for potential Short opportunity using CUE Global's Unambiguous checklist to pinpoint Short entry.

Using 360 Degrees Analysis in this manner, combining Industry, Fundamental and Technical Analysis, you can invest and trade confidently. Knowing that you have looked at the trade holistically before taking it.

And that is the Superior Profit Way.

Trade Profitably!


These products are not a recommendation to buy or sell, but rather a guideline to interpreting the specified analysis methods. Only investors who are aware of the risks inherent in securities trading should use this information. MetaStock in no way endorses the products and services advertised and accept no liability whatsoever for any loss arising from any use of these products or their contents.

Thursday, July 6, 2017

Invest with Confidence, Being your own Personal Stock Analyst

From the desk of Superior Profit and Sagar Nandi.

Have you wondered how and why stock analysts regularly promote stocks that are at 52 Week High and say "These are wonderful buying opportunities"? Or why they wanted you to buy the stock at the very top and not while it was going up from a lower price?

Take Tesla (TSLA) as an example, seen using CUE Hop On chart template. In the chart, green/cyan are Bullish, red/magenta are Bearish. Yellow is Neutral. 

If you were listening to the media and Stock Analysts, you were probably hearing a lot about Tesla going up and up and away.

However, Tesla dropped after displaying several magenta (Flow) color Candle in this Daily chart. Using information from the CUE chart and the Fundamentals of the Stock using CUE Vital Fundamentals, you could Protect Profit in Long Position and possibly get ready to Short the Stock for Swing Trading.

Tesla is just one case. Instead of relying on other's recommendations that seem to confuse more than help, you could come up with your Buy/Sell Recommendation of a Stock yourself quickly and objectively using CUE 360 degree analysis. You could do that with Tesla, or with any other company in the world.

Here is another example of how CUE Traders gave a Buy Recommendation on a Stock in the USA Market using CUE 360 degrees analysis.

The Buy conclusion on the Stock CECE (USA) was achieved by combining Industry Analysis (using CUE Edge Sector-Industry Analyst), Fundamental Analysis (using CUE Vital Fundamental Analyst) and Technical Analysis (using CUE Global Technical Charts). This holistic CUE Analysis gives you a 360 degrees view of what is going on in a Stock. And you can Buy (or Short) more confidently.

CUE Edge Industry Analyst

CUE Edge Industry Analyst ranks Industry Groups in Real Time to show which ones are getting stronger and which ones are being weaker.  This Ranking updates in Real-Time. You always have the most up to date information at your fingertips.

You do not even need to read the actual Ranks. Reading the Heat Map colors is enough. If you see an Industry is changing color from magenta in earlier months to cyan in recent months, you know it is getting stronger.

If you see multiple related Industries are getting stronger at the same time, then you have more confidence in the strength, which was the case with Industrials when we analyzed them in the Live Weekly Market Roundup of Saturday, 1st July 2017 (this is shown in the CUE Edge Industry Ranking Table above). Recording of the session is available on Video Center under Weekly Market Roundup.

How might you use this insight? If Industrials were gaining strength, you could look for Buy Position in Industrials, of course!

CUE Vital Fundamental Analyst

As a Stock Analyst, your next task as to find an Industrial Stock that had the right (low) price. CUE Vital Fundamental Analyst helps you do this analysis visually in minutes.

CUE Vital analyzes a Stock in itself and also relative to its Peer Group of Stocks. Presents all the data into multiple categories using easy to read color codes. There are various pieces of Fundamental information. For quick decision, you might just look at the CUE Vital Scorecard.

When we analyzed CECE using CUE Vital, the Scorecard looked like this on 3rd July 2017.

I will point to the few pieces of information here. You may get more detail on it from the Education Center.

1) CUE Vital can fetch a Stock's (CECE, in this case) Industry Peers and compared the Fundamentals. CUE Vital applies a Score of 1 to the weakest Stock and bigger scores to stronger Stocks across multiple dimensions. And finally, CUE Vital creates a Heat Map using intuitive color coding. Green/Blue is "healthy" or "preferred" condition. Red/Magenta is "weak" or "not preferred" status. Yellow is Neutral. That simple.

2) From column B you could instantly see that CECE had one of the best Earnings Reliability Score. Just seeing the Blue color was enough.

3) From column C you could immediately find out that Relative to its Peers, CECE was valued optimally.  Blue background color told you that.

4) From column D's Blue color, you could infer that CECE had high Internal or Intrinsic Value.

5) Additionally, from column I, you could observe that CECE had a high possibility of Short Squeeze, again, merely reading the Blue color did the work for you.

What you had then? A Stock (CECE) with High Earnings Reliability that was Optimally Priced in itself as well as in comparison to its Peers and the Stock had a chance to shoot up due to Short Squeeze.

We already saw, using CUE Edge Sector-Industry Analyst that the Stock was in an Industry that was gaining strength.

You needed one last check before you could decide to Buy this Stock.

CUE Global Technical Analyst

You only make money Buying a Stock if the Stock goes up.

If you buy it while the Stock is going down, that is called "catching a falling knife". And you end up losing money. You probably would rather Buy a Stock that is not falling, like all other CUE Traders.

Therefore, the third and the last leg of CUE Analysis before deciding to Buy a Stock is to see if the Stock has stopped falling. Starting to go up. Or at least, forming a Base at the bottom and showing signs of strength.

You can analyze all these (and more) using CUE Global Technical Analysis. CUE Global Charing is also a Visual Tool like CUE Edge and CUE Vital.

On 3rd July, CUE Global chart of CECE looked like this (seen using Backdrop Weekly chart on the left and Hop On Daily chart on the right).

The chart labels tell the story. You may learn more about the colors and indicators on the chart from the Education Center.

Now, with the 360 degrees analysis, you had a Stock with a Buy Recommendation.  Recommended by yourself!

And your recommendation would work well.

This trade idea was posted in Superior Profit Traders Community on 3rd July (here is the link to the post). And within two trading days, on 6th July, it has hit the Profit Target.

You may use the CUE 360 degrees analysis in this ways on any Market and any Stock in the world.

A) You might look for Industries that are weakening to either Protect Profit in Long Position or even to Short a Stock using CUE Edge Industry Analyst.

B) You might look for Fundamentally Weakest Stocks for Shorting and the Strongest Stocks for going Long using CUE Vital Fundamental Analyst.

C) You could pinpoint the exact Entry and Exit points of your investments and trades using CUE Global Technical Analyst.

With these three tools, you have everything to be your Stock Analyst. And invest confidently for profit.


Monday, June 5, 2017

Volume Reversal Tutorial for Tesla June 5th 2017

From the desk of top market timer Mark Leibovit:

We are always looking for high degrees of correlation between our indicators and our stock or index trades and even though the theory behind the Leibovit Volume Reversal (tm) - Volume precedes Price - should results in uniform trading results, there are always exceptions - and no trading tool, including my own is perfect.  Yet, it has been the foundation of my success for nearly 40 years.

Here, we take a look at Tesla (TSLA) on both the daily and weekly Sequential chart. As a reminder, the Volume Reversal package includes the Sequential, Directional and 2-Day versions of the Volume Reversal. The Sequential posts all Positive and Negative VRs, the Directional filters out repetitive VRs and the 2-day signals an exit two days (two bars) following the VR. 

The Leibovit Positive VR on May 24 accompanied by a rising 5/3/3 stochastic is the most recent and demonstrable example of the success of the VR.  Just prior to that, however, we also saw a profitable use of the Leibovit Negative VR on May 15.  In the video we flip to the weekly chart and also see how powerful the Volume Reversal tool became on a larger time frame.  Clients choose the time frame, though I personally prefer the daily charts.

Watch the full video here.

Tuesday, May 2, 2017


From the desk of top market timer Mark Leibovit:

Looking back at my trades over the past 18 months, one of the most frequent and profitable trades occurred in my 'Trump' cement-stock pick, Martin Marietta Materials - MLM. As a result, I wanted to highlight MLM in today's video along with mention of my upcoming May 9th Webinar and my weekly WALL STREET RAW radio show which will be expanding to additional 19 radio stations across the country.

The basic premise of my Leibovit Volume Reversal (VR) (tm) is the volume precedes price.  A Positive VR should lead to high prices while a Negative VR should lead to lower prices.  This is simply a reflection of upside or downside momentum generated when increased levels of volume hit the marketplace on an upswing or a downswing.

There are three versions presented in the 'Add-on' subscription: Sequential which posts or Positive and Negative VRs, Directional which discards repetitive Positive or Negative VRs and 2-Day which is based on the premise that following a Negative or Positive VR which see momentum in the direction of the volume for 2 trading days.

I also tie a 5/3/3/ Stochastic to my thinking wherein a rising stochastic accompanied by a Positive VR usually triggers a long trade while a declining stochastic accompanied by a Negative VR triggers an exit of a long position or a short.

In the attached video, I examine MLM on both a daily and weekly basis, though my preference for trading is the daily chart. In the example shown, most recently a Leibovit Positive VR was generated on April 19 accompanied by a rising stochastic.  The result?  Four more days of rising prices.  We went long at the VRtrader.com Platinum service the next morning at 212.63 and sold it 224.00 on April 25 for a respectable $11.37 profit.

Link to Saturday, April 29  - WALL STREET RAW RADIO show:  http://tinyurl.com/mvq6xwa

Thursday, March 23, 2017

Volume Tutorial Video on SCO

From the desk of top market timer, Mark Leibovit: 
SCO - The Proshares Ultra-Short (triple) ETF for Crude Oil was one of the trading recommendations recently posted at VRtrader.com and the accompanying video demonstrates how you have profited using my Volume Reversal (tm) indicator. 

In the video I show both daily and weekly charts. In the daily chart, a Leibovit Positive Volume Reversal was formed on February 28 signaling a potential top in Crude Oil (index is inverse). 

Another one was formed on March 8.  We jumped in on March 3 as a rising 5/3/3/ stochastic confirmed upside momentum and we were able to purchase on a slight pullback. 

Lucky for us, the March 8 rally unfolded and dramatically confirmed we were on the side of the trade.  Followers of my trades at VRtrader.com know I tend to 'ring the register' as often as I can and rally into March 10 afforded us that opportunity.  

Generally, a Volume Reversal (positive or negative) translates into momentum in the direction of the Volume Reversal for a couple of trading days - the reason we created the 2-Day version as part of the Volume Reversal package. Recall, there are three versions offered: the Sequential (shows all VRs), the Directional (filters out repetitive VRs and provides a stop) and the 2-Day which exits you two days following the VR (a stop is also provided). 

These products are not a recommendation to buy or sell, but rather a guideline to interpreting the specified analysis methods. Only investors who are aware of the risks inherent in securities trading should use this information. MetaStock in no way endorses the products and services advertised and accept no liability whatsoever for any loss arising from any use of these products or their contents.

Thursday, February 23, 2017

Superior Profit Analysis of Tesla after Feb 2017 Earnings

From the desk of Sagar Nandi and Superior Profit

Superior Profit Analysis of Tesla after Feb 2017 Earnings

​Tesla had a stellar performance in last one year. Going up by 53% while SP 500 (SPX) went up by 21% in same period.

Out of that solid TSLA up move, last 3 months has seen a growth of 43%. SPX increased by only 7% in that period.

This lead to the quarterly earnings announced on 22nd Feb 2017.

What about so called experts' views after earnings data came out? Several of them came out with positive comments on Tesla like Baird's comment (seen from Thomson Reuters News): "Tesla Energy's potential is still undervalued", "Tesla suits the Made in America Theme ..." etc. And even went on to raise the price target of Tesla to 368. Tesla Close don 22nd Feb 2017, after earnings result was announced, at a price of 273. Huge potential upside - isn't it?

​All these may lead a Superior Profit Investor to buy Tesla now. Not so for Superior Profit Investors. Why?

To start with, Superior Profit Investors are not lured by news events to buy at the top. Following Superior Profit Way, they would have taken a Long position in Tesla many months ago. And they would book profit or protect profit at current levels. Tesla is currently at CUE Pendulum High level now - too high a price to enter Long. Superior Profit's optimal place to enter Long Term Investment is at Pendulum Low Level. ​​

Secondly (and secondarily; as Superior Profit Investors prefer to do their analysis rather than relying on others' estimates), though some analysts upgraded Tesla, the current target price of Tesla based on aggregate analyst estimates is about 245, which is about 10% lower than the current price. Current aggregate analyst recommendation is Hold and not Buy or Strong Buy. Also, though Tesla Q4 Revenue was somewhat above expectation, Q4 EPS came quite below expectation, and turned negative from positive.

Thirdly, as seen from the CUE Line Chart of Tesla using Weekly interval, it is at a resistance price zone and not at a support price area. This multi-peak resistance area is not a time to take a Long position in a Stock.

Finally, when we look at Tesla using CUE At  A Glance view, which combines Weekly Backdrop chart with Daily Hop On Template, we see several indications of not going Long. And probably even signs to take a Low-Risk Short position in Tesla right now. Why so?

In Superior Profit Way of Trading Profitably, Fake Breakouts at CUE Memory or Watermark levels accompanied by Heavy Activity often gives us a Low-Risk Entry Point. Weekly Backdrop chart of Tesla is showing such Fake Upside Breakout. What's more, the Fake Breakout is happening at the same level where CUE Bearish Headwind foretold a sharp drop in Tesla around July 2015. 

In summary, what is our view of Tesla for those holding a Long position? We suggest you book some profit. Or, at a minimum, tighten Stop.

In Superior Profit Way, we only take Low-Risk Trades that also have High Probability of success.

​If you decide to Short Tesla at the current price, you might book or protect profit using CUE Protection price level once the Risk Distance ( the difference between Short Entry Price and Stop Price) is reached or if Tesla hits a Support Price Level after your Short Entry.

Where is the current Stop Price level for any Short position in Tesla? CUE System Traders use CUE Protection level for deciding that. In the last up move of Tesla that started in Dec 2016, this same CUE Protection let Superior Profit Traders hold on to Tesla Long position for the long haul and get a very significant profit while protecting it along the way with Stop orders. This same CUE Protection indicator may now be used for the Short position as indicated in the CUE Hop Off Template chart.

There you go. With Superior Profit analysis of Tesla, right after its earnings announcement on 22nd Feb 2017.

Our traders share such trade ideas regularly in our Traders Community (in forums including Trade-Ideas from Superior Profit, Graduates-Club, the invitation-only club for traders from around the world, etc.), and we discuss them frequently in our Live Classes. You may check those out. They are open to the public for free. As a Superior Profit's way of saluting the serious trades from all over the world.

Trade Profitably!


Wednesday, February 22, 2017

Volume Reversal Tutorial on CNBX

From the desk of Top Market Timer Mark Leibovit:

The VR Cannabis/Vice Letter was the second major newsletter in the United States - launched over three years ago - During that time we (I) have successfully pointed out investment and trading opportunities that in some cases have appreciated up to 1000% increases.  You should pay attention, not only to these videos but to what I am reporting in the VR Cannabis Vice Letter.  Clients knowing of my interest in GW Pharmaceuticals (GWPH) watched the stock explode 53 points from 38 to 91 back on March 14, 2016 - out biggest point gain of the year. Canopy Growth (TWMJF) now called Weed, rallied from 2 to 14 and is still out our list.  Herein, we're looking at Cannabics Pharmaceuticals (CNBX) which we purchased for newsletter clients at $1.13 on February 1, 2017.  It traded as high as $4.41 this past Friday.  Why did we go long?  Look at the seven (7) Leibovit Positive Volume Reversals posted demonstrating strong investing buying. Notice the steadily rising 5/3/3 stochastic which confirmed the Positive Leibovit Volume Reversals shown in the accompanying chart in this video.  We have a new recommendation for Tuesday morning, February 21. I hope you're looking at the Leibovit VR chart and in particular subscribing to my Cannabis/Vice newsletter!

Happy Trading.  

Wednesday, January 11, 2017

ETF Day Trade: Weekly Options Trade using CUE Fine Tune

From the desk of Sagar Nandi and Superior Profit

​For Day Trading, Superior Profit Traders enter trade precisely at the right time using CUE Fine Tune Real Time chart. And they book profit with discipline. Sometimes, if the trade has not entirely played out, they may carry the trade forward to next day. All along, executing the trade following a pre-thought-out plan.

The two trades I took on DIA (ETF) in USA Market using Weekly Options on 3rd and 4th January 2017 are good examples of this Superior Profit Way of Trading Profitably. I will share the detail of these two trades below.

To begin with, I like to keep an eye on the Broad Market indices, futures or ETFs of the country I am trading. For USA Market, these are the three ETFs SPY, QQQ, and DIA.

​I had noticed earlier during off-Market hours that DIA was near Memory line in CUE Daily Hop On chart. I anticipated that the Memory might act as resistance and DIA might move sideways for a while or come down from the resistance; just long enough to make a Day Trade profitable.

​Here is the CUE Hop On chart of DIA at that time.

As you may also notice, DIA had displayed a Bearish Headwind signal on the Daily chart a few days ago. That further supported my short term Bearish view on DIA for a Day Trade.

Next, I looked at CUE Fine Tune 5 Minute charts of DIA, QQQ, and SPY.

​I noticed that DIA was the weakest. I observed this weakness by looking at the price movements of the three ETFs around the Fine Tune Pivot Levels.

CUE Fine Tune chart draws the Early Range Pivot Levels soon after Market Open. By looking at the Stock's move within or out of Early Range, we can see if it is Short Term Bullish or Bearish or Neutral.

If the Stock (or ETF) moves out of Early Range High, then the Stock is Bullish in the short term. And if it goes below Early Range Low, the Stock is Bearish in the short term. If the Stock moves within Early Range, then it is Neutral in the short term.

As seen from the Fine Tune charts below, DIA was not able to go above Early Range High. However, both QQQ and SPY went well above Early Range High in their respective charts. 

​​In Day Trading, if I am looking for Shorting a Stock or ETF, I tend to Short the weakest among related symbols. This principle (and the Memory Resistance in DIA Daily chart) lead me to take a Bearish Day Trade on DIA using Weekly Short Call Vertical. I used "Short" Vertical to have time decay in my favor. Below is the Risk Profile of this trade.

I tend to place Good Till Cancelled (GTC) profit booking order on a partial position as soon as my Trade Entry is filled. In this case, I did the same. And within 1 hour; as highlighted in the chart above; half position was closed with 50% profit.

At the end of the day on 3rd Jan, just before Market Close,  I looked up DIA in CUE Spotlight - which combines the Daily Hop On view and Intraday 5 Min Real Time Fine Tune view of the instrument.

This snapshot is shown below. I noticed that the Daily Candle was ending the day with a Bullish shape; with Long Lower Tail. And in the Fine Tune, 5 Min chart on the right, DIA had recovered significantly from Day's Low. As I initiated the trade as a Day Trade, and the day was ending with Bullish tone, I decided to close the remaining position at 25% profit. This trade resulted in a net profit of 37% on the full position within one day.

​The trade was taken as Short Call Vertical using Weekly Options (DIA 6 Jan 2017, 199/200 Short Call Vertical). Below are the actual orders executed for this trade. 

I closed the 3rd Jan DIA trade with profit. After closing this trade, I noticed that DIA was still below the Daily Memory Resistance. So, next day, on 4th January, I kept an eye on DIA. Looking for another opportunity to take a Bearish trade - provided the CUE charts signaled one.

As it turned out, again, DIA was the only one among DIA, QQQ, SPY that failed to go above Early Range High in the morning session after Market Open. And I took the same Short Call Vertical spread that I used the day before; using Weekly Options.  

Here is the Risk Profile of this second trade.

As usual, I put my GTC profit booking order on half position at 50% profit level. However, this was not triggered. At the end of the day on 4th Jan, I looked up DIA in Fine Tune 5 Min chart. DIA did not go down. Neither could it go up. It Closed right inside Early Range. As the Daily Chart Memory Resistance was not violated, I decided to carry the trade overnight. Below is the CUE Fine Tune view of DIA at the end of the day on 4th Jan.

Carrying the trade forward turned out to be the right decision. Next day, DIA fell, and the GTC profit-taking order on half position was executed around 11 AM on 5th Jan.

I then put another quarter position profit-taking GTC order at 75% level. And before midday on 5th Jan, that was also triggered. I was then left with a quarter of the original position. And I decided to try to let it expire worthless. Knowing that from this point onward, the trade was a guaranteed Risk-Free-Trade. Even if DIA rallied, due to the loss-limiting feature of Vertical Spread, the overall trade was going to make a profit.

Here are the DIA Vertical Spread orders executed on this trade till this point.​

Next day; on 6th Jan; which was the expiry day of the Vertical Spread, DIA did not come down. Instead, it went up and Closed at 199.51. Right in the middle of the two legs of the Vertical. The DIA Long 200 Call expired worthless. And the DIA Short 199 Call was worth 0.51. I had opened the Vertical Spared for 0.41 credit. So there was a small loss in this remaining position.

Overall, still, the trade made 44% profit in 3 trading days. I was able to capture a profit as I booked profit in a disciplined manner at 50% and 75% levels without hoping for a much larger profit on the whole trade.

The CUE Fine Tune 5 Min chart below explains the full trade Entry and Exits.

As these two DIA Day Trades show, a disciplined trader can use the CUE Charts to make a significant profit using Weekly Options. Superior Profit Traders do that regularly. And sometimes they share their trades while they are taking it.

Both of these trades were posted in Superior Profit Traders Community while they were entered. Not as a Trade Alert to fellow traders. But as a way of demonstrating how the CUE Charts may be used to take disciplined and profitable trades. The trades are posted before knowing their outcome. And sometimes; if required; our traders accept a small loss and move on to next trade. That detail is also shared in the Community posts.

You may find the 3rd January 2017 trade in Traders Community following this link and the 4th January 2017 trade following this link.

There are many similar Day Trade ideas as well as Long-Term Investment, and Swing Trade ideas in the Superior ProfitTraders Community.

I hope as you go through these trades, it will give you some insight on how Superior Profit Traders are taking profitable trades every day in different countries around the world.


Tuesday, January 3, 2017

Vertical Spread Option Trade with CUE Bounce Set Up

Monday, January 2, 2017


From the desk of Mark Leibovit:

Leibovit Negative VRs in DIA, SPY and QQQ in recent days and weeks confirmed a market peak. Now we have to watch the first days of January to see if this selling accelerates or finds support.  VRtrader was long inverse ETFs but took profits Friday with a view to reinstate positions after the New Year.