| Morning! I'm wondering how many of the IBD Live watchers are investing in a short ETF following the CPI report |
live answered |
| Can we get Paul Pelosi on as a guest ...he seems to be having better success than any of us. |
Good one Leslie! |
| Q&A: Can only see my questions here, if that is what is going on. |
So sorry about that, Edward! We are actively working on this with the Zoom team. Thank you so much for your patience! |
| GM IBD LIve! Could you please post the link to Chris Gessel's "Hedging with Puts" video. Thank you. |
Hi! Here you go: https://www.investors.com/videos/ibd-live-demo-protecting-big-gains-with-a-put-option/ |
| Can you see my message in the Q and A? Cant see anything, was working yesteday! |
We haven't answered very. many Qs today |
| could we talk about kweb, cqqq, etc.? seems to be strength compared to u.s markets. also kens. bought bidu a week or so back. did you guys talk about this set up or just preaching one thing and doing different. |
live answered |
| Oh Snap! - Zoom automatically updated when I started the show & now I don't see Q&A! |
Seeing questions now? |
| Interesting action with SWAV. thoughts? |
I agree. Watching for a decisive move above Thursday's high. |
| HI Evan! Do you use options strategies to define risk? |
Hi Gary! My automated trading systems do not, but I personally do when I'm discretionary trading, especially on the short side. |
| How to Short, the missing link on IBD, is now being covered. You guys keep getting better and better. Thank you! |
Glad to hear, Edward! We'll aim to cover more short ideas later in the show :) |
| @Evan Medeiros, how far out do to attempt to trade your options contracts? |
I never want to run out of time or deal with theta decay. So I'll usually buy myself 3 to 5 weeks of time even for moves that I anticipate will only take days or a week at most. |
| Why did Evan choose options vs. inverse ETF? |
Better leverage, more capital efficiency. That's not always my choice, but it happened to be in this situation. |
| could we talk about kweb, cqqq, etc.? seems to be strength compared to u.s markets. also ken s. bought bidu a week or so back. did you guys talk about this set up or just preaching one thing and doing different. |
I thought the decisive move above the 50-day line was compelling. Not a conventional buy for me, but it's worked so far. |
| Evan, Did you use the 60 min chart in taking the BA short? Looks like 10 AM EST would have been a good time to take it. |
Hi Lance, you're right smaller time-frames can refine your timing and get you better entries. In this case, however, I did not, only a daily chart time to make the decision. |
| You played softball for Texas Alissa? That's awesome! |
My colleage Alexis Garcia did, not me! |
| I know we're not looking to buy anything today but AN is showing good relative strength the past few days in particular |
Agree, the group is pretty strong. PAG, ABG also acting well. |
| Does Evan use the intraday chart to determine when to close the short? |
Hi Robert, almost always using the daily-time frame exclusively. |
| Morning Evan, thanks for joining us. Would you share with us how many positions do you typically have on. Or in other words, what are your position sizes. Thanks |
Hi Jim, my longer term trading system I can have 25 stocks or more to make a full portfolio. Short term tactical system is only 12 stocks. |
| Good vacation timing by Chris G! Mkt launches into a massive rally whenever I am on vacation |
Normally the market does great when Chris is on vacation and out of touch. |
| If the market closes down today, this will break Chris's streak of the market going up when he's on vacation. So much for the secondary indicators. |
LOL. |
| would you remind me of the name of the guest? |
Evan Medeiros. |
| Evan, do you find that automating your trades to a degree allows you to manage a higher number of positions? Thank you. |
Hi Carolina, absolutely. I would never be able to manage or keep track of the 40+ positions I could have on without a high-degree of automation. |
| Is the rally dead if we go below the low intraday or if we close below it? |
It's a close below the low of the FTD |
| I have great respect for Evan and his methodology. The beauty of the markets is how we all perceive things differently: I began shorting MOS on Wednesday with a tight lease. |
Love this! |
| @Evan Medeiros, do you own a tool, or did you build your own Risk Control trade log tool? Your position sizeing makes a lot of sense based on Vol / Beta. |
Hello, yes! This article on my website (https://www.thetraderisk.com/how-to-position-size-when-swing-trading/) discusses the methodology in a little more detail and there is a position size calculator download for Excel too. |
| I'm in LLY at 260 and have been looking to add. Is today a good day. analysis please ! |
It's testing the 50-day SMA now. If it bounces, yes. But it's not bouncing yet. Market too weak. |
| @Evan Medeiros: Carolina mentions automation. What tools to you find most effective? |
I do alot with Microsoft Excel and Interactive Brokers API. |
| Evan, are you standing thru the program, great if you can.....looks a little like Ken's actions.. |
Standing :) |
| These Markets feel like the "Spaceballs" fight scene between Darth Helmut and Lonestar. " I can't believe you fell for that! Come on Man!" |
Classic! |
| At least something I can boast of being like the great Chris! |
Heh. |
| FXI is holding up well at the moment today; thoughts? |
China stocks are doing well. |
| sorry BYDDF.... |
I misspell that ticker all the time! |
| Evan, do you ever use option strangles and stradles? |
Short answer, not really, but I have very rare in the past. |
| Evan, do you find that you need to regularly adjust the parameters of your automated system as the market evolves over, say, this year vs. last year? |
No definitely not. I always opt for "loose fitting systems" to avoid this. The systems were built using 2 decades of market data, so one year shouldn't make a difference. There would need to have been a big oversight in risk management or something related that wasn't accounted for, otherwise try not to tinker. |
| Please provide some color on FNKO. |
FNKO is holding up fairly well. Maybe this V-shaped action can settle down and form a new base. Volume was relatively low on the way up, I'll note. |
| Seems the QA problem has hit me today. Tried leaving and coming back in a couple times. Can you see this? Thanks. |
Yes! |
| I went very long given Chris went on vaca and it didn't work out-won't close out my longs until he gets back 🤞🏼 |
We could be seeing the market break in anticipation of his return. :) |
| GM from Cape Cod |
Grew up 35 mins west of the Cape, beautiful this time of year :) |
| BYDDF is up still |
China stocks doing well. On BYDDF, it tends to move primarily on Hong Kong trading. So it might not join sector/market action in U.S. trading - but then catch up in the next day after HK weighs in. |
| Evan, what is your advice as I am a software developer working to build my own 100% rules based system (then maybe automate someday)? |
Hi Richard, yeah I would bite off one piece at a time. Work on the strategy first and then work out the steps to automate it. |
| How often does MSGrowth250 update ? |
The list updates every day. Prices update intraday but delayed. |
| Don't focus on making money; focus on protecting what you have! |
Exactly! |
| Interesting - I can see Q&A on my iPhone 6s, but not on my MacBook Pro ( which automatically updated Zoom this morning). Hmmm? Is it possible to un-update? lol |
This is good info, thank you! We will pass this along to the Zoom developers! |
| Not much green on the screen :>{ |
For sure. |
| Any chance that you could overlay the nasdaw from June 2000 to Dec 02 with today's market? Just to see what could happen? This first leg looks like the 3/10/2000 to June of 2001 |
That's a great idea. I think it's hard to overlay two charts from different time frames on MS; we'll have to try it on another platform, even a simple line chart via Excel or Google tools. But we should calculate the size of the decline, I imagine they are similar. |
| DVN does this morning's action look more like a rollover or a pullback? |
Looks ready to test its 21-day EMA. Not a rollover. |
| Did anyone mention the five-for-one stock split for FTNT that will occur on 06/22? Does that also play into current and future plays? |
Forgot to mention that. I don't think it'll have a big impact. Seems awfully big split for a $300 stock. |
| Thanks for everything on NFE - so helpful |
Good to hear; definitely a disappointing reversal for NFE, breaking expectations. |
| can we add to DVN? |
We usually do not think a test of the 21-day exponential moving average, which is what DVN is doing today, is an entry point. Yet Devon is holding its uptrend well. |
| I recently listened to Charles Harris about the safety of buying on pullbacks vs. breakouts. This is the first time in quite a while that NFE has pulled back to the 50-day moving average. Does anyone see this as a buying opportunity? |
Problem is, it's not finding support. At least not yet. Our average cost on Leaderboard is 43.69. |
| How important is the M in CANSLIM. It all starts with Market Direction. |
Still the most important letter indeed! Good point Peter -- https://www.investors.com/ibd-university/can-slim/ |
| One more: Don't forget that NFE "constructs" power plants, so higher energy prices may not be good for them. Now I promise to shut up for a while :-) |
Thanks (for the info). |
| Ed -AMPH is another one with a BIG drop and a Blue Dot !! |
Yeah, just some hideous sell-offs this week. TMST too! |
| is it to late to start a position on NTES |
I think 107.25 is a handle buy point, with Jan/Feb. highs around 108 also notable. So it's actionable. But it's also far above the 50-day/200-day line - and China stocks are very risky. |
| MERC for lightning round, pretty please? 3rd time requesting this week. |
Looks like its holding up well. Paper & Paper Products is typically a defensive industry but I like how this latest base is much tighter than the last. The 48% base wouldn't interest me but the fact that the last base was 20% is more interesting. But be careful of liquidity. This has lower dollar volume than what I like to see. |
| Evan, does your shorting system actually short stocks or do you buy puts, or both? Can it be used in an IRA? |
Yes it does short stocks so it wouldn't be possible to run in an IRA, unless you are able and want to use puts to express the idea. |
| Did FB change it's ticker to META today??? |
Yesterday I think. |
| Evan, Thank you for that. I'm asking about how to build a 100% rules-based (non-automated) system that works? |
Yeah that's a big question :) I have a handful of guides and learning center articles on my website addressing this. One that you could review would be here: https://www.thetraderisk.com/tag/beyond-the-charts/ which has links to my github with code. |
| Yesterday many of my stops were triggered and I was taking some small losses on recent buys and I was pretty frustrated. This morning I looked at the stocks I sold yeterday and now I'm feeling much better:) Thank goodness for sticking to sell rules. |
Best way to avoid big losses is to take small losses. |
| Ali, Could you ask the team to talk about the index levels to watch today. |
live answered |
