Investing Systems Research Lab Trade Plan Recap and Market Analysis
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Welcome Members. Last week several Trade Plans were closed as winners.
IPXL was probably the most impressive with a huge move on Thursday that surpassed Target 3. The Entry and Target 3 are shown on the chart below.
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WTNY hit target 3 on Wednesday as shown on the chart and was closed right near the high…how sweet is that?
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CSE only managed to hit Target 2, then retraced back to the Breakeven stop at Entry.
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We still have one Open Trade, TLAB, which has hit Target 1 and actually in a pretty good spot going into next week.
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The Entry and Target 1 are indicated on the chart above, along with the Breakeven Stop.
Log into the Research Lab for complete details and updates on Waiting and Open trades.
As we head into March, let’s take a look at the overall market to see where we are and what we can expect.
Here is a Monthly chart of SPY.
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Notice the market is sandwiched right between the 10-month and 30-month moving averages. You can also see the current channel and interestingly enough the uptrend line and 10-month ended Feb at almost exactly the same point. That is the major support to watch.
Let’s zoom in to the Weekly chart.
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While we had a couple close calls earlier in Feb where the SPY moved below the 30-week moving average, it managed to close above it both times.
You can see the current channel and we consider the bottom uptrend to be the major support as we go forward. If the market can remain above the 30-week MA and inside the channel, we will remain constructive and it will make it a lot easier for us to trade to the long side.
If the market is getting ready for a move lower or even a tumble we will know by watching for the following.
- A close below the 30-Week Moving Average
- A break of the price below the uptrend line that forms the bottom of the channel
- The 10-Week Moving average crossing below the 30-Week Moving Average.
If we see any of these occur we will expect the market to move into the red shaded area, which will put us on the major defensive.
We will keep you updated in the Live Broadcasts in the Research Lab as well as on the Wednesday and Sunday evening shows.
Regardless of what the overall market does, we can make money trading stocks.
Obviously we prefer to trade to the long side in an up market, however we have ways to take advantage when and if the market turns down. We will be discussing this in the Live Broadcasts so please joins us.
Lastly, we have a special situation stock to bring to your attention, BBEP.
We came very close to loading this into the system as a Trade Plan for Friday, but decided to present it here on the Blog as a “stock to watch”.
We will also be discussing this stock and our “special strategy” on this Wednesday’s show.
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BBEP is a MLP (Master Limited Partnership). It is an oil and gas royalty trust.
We like the chart and have indicated in the shaded ellipse the area we like as a buy zone.
The red line indicates the stop-loss.
BBEP announced its intention to reinstate quarterly cash distributions at the rate of $0.375 per quarter, or $1.50 on an annualized basis, beginning with the first quarter 2010 distribution. The Partnership intends to pay this distribution on or before May 15, 2010. This is roughly a 10% yield at the current price, however we have some tricks up our sleeve that we will share with members on the show. Essentially we intend to use our scale-in and scale out technique to bag some “low-cost” shares that can be held as an “investment”.
Haha! Imagine that, us dealing with anything so far-fetched as an “investment”.
Of course we are NOT recommending you just buy this as an investment. We are saying that we like the chart. We have a stop-loss point. And, we have a strategy to trade the stock with the goal of bagging some low-cost shares. We can then adjust the stop for a no-lose investment.
Members have noticed notes recently on some of the Trade Plans that say “no-lose” trade. This is the result of proper trade management and moving of stops to breakeven.
We will answer any questions and cover all this in more detail on the broadcasts and on the shows.
That’s all for this week folks. We will see you at the opening bell in the Research Lab.
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Investing Systems Research Lab Trade Plan Status Update for Members
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Let’s a take a look at the Trade Plans from last week.
First we have a couple Closed Plans that hit Target 1, Target 2 and Target 3 last week.
The Entry price is shown in the yellow circle.
NKTR
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STX
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As of today we have several Open Trade Plans. These stocks have already hit the Entry and Target 1. Note that the Breakeven stop has been raised to the red line, so these are no-lose trades. Log in the Research Lab Trade Planner for specific details.
CSE
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WTNY
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TLAB
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And finally, the Open trade in IPXL, which has not yet hit Target 1. We may have been a little early on this entry but the chart still looks nice. We would like to see a high-volume break to the upside on this next week.
IPXL
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So there you have it. A different view the current Trade Plans in the Research Lab.
Have a great weekend everyone!
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