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Weekly results May 12, 2018

S&P 500  2,727.72 +4.65 (+0.17%)  Dow 30  24,831.17 +470.97 (+0.37%)  Nasdaq  7,402.88 -2.09 (-0.03%)
 

Market fearLast week was good. Our net-liq grew up again as the market went up. We did a few adjustments only of the existing trades. Last week we could close a few “long term” trades (trades which I was dragging along for some time), there fore last week was successful and I was happy about it.

The market was behaving well, we broke out of the triangle and rallied. This could be good for the market and we could rally further although as of Friday we were a bit overbought. On Monday, we may see a small retreat, which hopefully won’t turn into a new sell off. We are on the resistance level and it may not hold. Time will show.

 

 

Early in the week, the market broke from the consolidation pattern. People didn’t believe in it much, myself included. We could easily see a fake breakout. The market could return back into the triangle and continue down.

In our trading group, I expressed my hope that “if this breakout holds” we would see a new rally.

 
S&P 500
 

As expected, we broke the larger triangle, and approached a strong resistance at 2720. We needed to wait to see if we could break it or bounce. The premise was that if we break, the next target would be at 2800:

 
S&P 500
 

And that’s what has happened.

When we reached the upper trend line of a sideways channel (see the dashed line) the market lost power, at least it looked like we had no more momentum. I could be wrong but to me the 2720 seemed to be. We had a nice run but it only went up the the upper channel (2580 – 2720) and lost power, lost momentum, lost steam, lost strength. I could not see anything which would prop this higher.

But again, I could be wrong. We saw a little rest after a week long run and on Monday a renewed rally could come back again (as nobody wants to stay invested over the weekend), however, I did not believe this statement too much. So, I added a sell signal:

 
S&P 500
 

Then, the trend started forming a shooting star… end of a rally next week?

 
S&P 500
 

Before the end of the trading session on Friday, the market proved me wrong. The shooting star disappeared and the market ended above the trend line resistance. Would that become a new support? We would have to wait for the next week to see. However, my expectation is that after a short sideways (or even down) move the rally will resume.

Then Trump announced help to a Chinese company ZTE Corporation which, evidently, the futures traders seem to consider a good thing and then futures rallied.

 
S&P 500
 

Will this trend hold? Well, at least on Monday it will.

 

 · Weekly Results May 12, 2018

 

0512trading
 

Last week we made $941.76 dollars total across all accounts.

Here is a list of all trades closed last week:

 

0512trading
 

 
You can follow all trades here.
 

 

 · Dividend stocks to buy

 

Out of our watch list of 37 dividend stocks the following ones are a good buy at today’s prices (05/12/2018):

 
S&P500
 


Disclaimer: The list above is based on calculated fair value and 52wk high offset valuation. The values are subjective to our calculations and opinion and may differ from your own. If you decide to trade or buy these stocks, do so on your own risk and do your own homework. The list is not our recommendation to you.

 





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