036: Were you ready for market rotation?


Financial Movers Podcast #36



Welcome to the Financial Movers Podcast. (today is, the time is e/t, and this is episode # …. and I’m speaking to you from ...) No matter if you’ve been listening to this podcast since episode 1, or this is your first time listening, OR you’re somewhere in the middle of those two, I promise you'll finish this podcast today with more knowledge than you started it with. 

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Also, if you want a visual aid to better understand the strategies and indicators I'm using then you can follow along on my Youtube channel @FinancialMovers where I have this episode posted with a screen recording in video format of what I'm doing this entire episode. Similarly, I have all of today's notes posted on the Financial Movers website, so if you're a cliff notes type of person then the outline will serve you well. 

Today’s Agenda:

  1. How to properly swing a stock: I’ve been in this one since July 22

  2. The financial sector just took off, but still has a lot of flight time before it’s time to disembark the plane

  3. Major indexes were either down, or barely broke even, but i don't believe that today was a sell off. Only a breather for a hot market

  4. Add it to the watchlist - I have another pick that you need to follow

1. Textbook Swing Trade: Kimberly Clark (KMB)

- Posted on Twitter @FinancialMovers --- July 23---Trading at $144.60

  • Target was met at $150. But don’t pull out. Move the stops up. 

  • I’m now up +8.7 in unrealized gains, but my stop is currently at $154.84, so if stopped out I'll capture +7%

  • If i pulled out at my target then i’d be missing out on an extra 3.2% from where my current stop is at $154.84

2. The Financial Sector is soaring:

- On July 15 I released episode #27 and stated that the market was beginning  rotation. I said money would move from the tech sector and start going into financials.  

- Today:Nasdaq ended (-1.13%)

  • I’ve been talking about all four of these financial companies for a while whether in previous episodes, on twitter, or both

  • I’ve especially been hot for $BAC and you can go back to episode #32 when $BAC was trading at $24 and listen to when i broke down their financials, how much buffett was investing into them, and where i see their stock price going in the near future, and it's definitely higher than today's close of $26.11

  • $BAC is already up +6.57% since I've been vocal about it in late July and this is the tip of the iceberg. 

3. Today wasn't a sell off. Only a breather for a hot market: Stocks that were doing good wouldn't “dip” for you to buy them

TXN:Don't be afraid that it was down (-0.13%) today. Make sure stops have been moved up, but I believe today looked more bull than bear

-Low sell-volume which indicates small profit taking (below avg volume)

-6th consecutive day of making higher lows

-Close over $133 signals strong support

-Making new base over 50 on RSI

-solid cup and handle pattern

- It’s up +3.2% from my call on entry and call on Monday

- Moving my stop up to a little under Thursday’s low of $132.03

- Putting my stop at $131.90. A little space under the low and psych level of $132       support.

Lockheed Martin (LMT):

  • Closed today at $385.62. Called and entered on monday at $377.10 +2.2% (slow moving, but have patience)

  • Closed higher than the indexes. Good volume and riding 20-day support v strong 

  • Moving my stop up to entry at $377.10 to at least break even. If price falls that low its a false breakout

4. Add it to the watchlist: Philip Morris International (PM)

- Moving stop up to $75.90  --  Psych level of $76 and a little space

This concludes episode #36 of the Financial Movers podcast.

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