Fort Worth Investor’s Business Daily Meetup Group€¦ · 28-05-2020 · more). But if I...

Welcome to the

Fort Worth Investor’s Business Daily Meetup Group

May 28, 2020

Find more FREE information at www.investors.com Join the Dallas IBD Meetup IBD Meetup at www.meetup.com/ibd-265/

Agenda:

Market Diagnosis – the “M” in CAN SLIM • Market in _______________________.

1. Education Topics: • Finding a Winning Stock - The 2-step Dance • The Cup base • The Flat base

2. Your Stocks Ideas – the most requested stocks plus the most interesting

• Note the “Buy, Hold, Sell, Watch” at top of each page – so you can figure it out once!

3. Your Evaluation – please make your comments and send to [email protected]

You and you alone are responsible for your investing decisions.

NO advice is ever given. All information is for your education and

entertainment only!

Disclaimer:

copies B&W, single sided, stapled upper left landscape, 3-hole punched THANK YOU

THANK YOU

to the investors who come early

to help us setup

Group Goal: Buy the Best

Watch the Nest

Visit the Rest .

http://www.investors.com/

http://www.meetup.com/ibd-307/



STOCKS TO BUY, HOLD, SELL, SHORT OR WATCH NOW

2 2

Dallas IBD Meetup Questions? Charlotte Hudgin 214-995-6702 3

Building and Tending Your Investment Portfolio

Buy the BEST Watch the NEST

Visit the REST

1. Buy the BEST – Use the IBD ratings to find the best CAN SLIM stocks

• EPS 80 or above, RS 80 or above, Accumulation/Distribution A or B • Avg Volume 500,000+, Price $15+, Growing Sales and EPS • Breaking out of a strong, early base

2. Watch the NEST – Once I own a stock, my relationship to it completely changes. It’s “my” stock now. I take care of my chicks. Feed them as they grow (even add more). But if I discover my cute cuddly chick is weak or fighting me, it may be time to let them go to a new caretaker.

3. Visit the REST – What about all those other stocks you identified as “almost” ready buy? A secret I don’t talk about: I have two watch lists. One I look at daily with stocks very near buy points or waiting for EPS announcement. And a second

weekly list of stocks that are getting close to a buy signal.

The market direction wheel

5/28/2020 Weekly Classes © Armchair Investor(SM) 2002-18, Charlotte Hudgin 214-995-6702 4

Uptrend

Downtrend

Market under

Pressure Attempted

Rally

(Uptrend)

4 Be an Armchair Investor 4


5

Market Action Closing Price Index % Change Vol % Change Accumulation or

Distribution Day ?

Nasdaq 9368.99 -0.5% -8.9% Neither

S&P 500 3029.73 -0.2% NYSE VOLUME

-15.6% Neither

MAJOR ACCUMULATION: Price = +1% and Volume Higher MAJOR DISTRIBUTION: Price = -1% and Volume Higher Minor ACCUMULATION: Price = +0.2 to 1% and Volume Higher Minor DISTRIBUTION: Price = -0.2 to 1% and Volume Higher

Nasdaq: Above/Below 50 M.A. Market in: Uptrend / Downtrend Above/Below 200 M.A. Max Distribution Day count:____

# LEADERs Up= _____

Down= _____

Nasdaq 50-day moving average line

200-day moving average line

5/28/2020 Weekly Classes © Armchair Investor(SM) 2002-20, Charlotte Hudgin 214-995-6702


6 5/28/2020

REMEMBER:

"THE MARKET CONTINUES IN

THE DIRECTION IT’S GOING UNTIL IT DOESN’T."

Weekly Classes © Armchair Investor(SM) 2002-20, Charlotte Hudgin 214-995-6702

Working together to achieve higher returns in life Armchair Investor

0

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IBD Big Picture: Why Growth Stocks Suggest The Stock Market Uptrend Is Not Ready To Quit


JUAN CARLOS ARANCIBIA 05:50 PM ET

05/27/2020

The session ended well for the stock market

Wednesday, as indexes and most growth

stocks managed to rebound from morning sell-

offs. It was another sign the confirmed market

uptrend is not quitting.

The Nasdaq composite sank as much as 2.1%

but recovered that entire loss. The composite

closed 0.8% higher, finding support near its

short-term 10-day moving average. It was a

remarkable rebound, and one that many

growth stocks mirrored.

Technology, health care, internet and telecom

— sectors that propelled the stock market from

its coronavirus-bear-market depths — came

under duress this week. The IBD 50, a growth

index, fell 0.3% and is down more than 2% for

the week. Many software leaders that served

as stay-at-home or telework tools slid as

coronavirus lockdowns were relaxed more.

The rotation out left some leaders wounded. Dexcom (DXCM)

has lost 11.3% since the market came back from Memorial

Day, wiping out much of the gains from its 281.07 buy point.

Fortinet (FTNT) lost 4.6% Wednesday and 8.1% for the

week. Facebook (FB), Silicon Motion (SIMO), Veeva

Systems (VEEV) and other growth leaders tumbled.

However, many stocks pared losses or even made bullish

price reversals. Netflix (NFLX), Newmont Mining (NEM),

Regeneron (REGN) and Advanced Micro Devices

(AMD) rebounded after touching their 50-day and 10-week

moving averages. That shows institutional investors took

advantage of the dip to buy more shares.

Bullish Price Action For Growth Stocks

Those single-day price bars with long bodies and closes near

the top delight chart readers. Many other top-rated stocks

found support at other key price levels. In sum, the woes of

top growth stocks could be short-lived.

The market shows little fear despite significant threats. Health

experts fear more people will contract Covid-19 as commerce

slowly reopens. U.S. coronavirus deaths hovered around

100,000. The economy faces massive unemployment.

https://www.investors.com/author/arancibiaj/



https://research.investors.com/stock-lists/ibd-50/

https://www.investors.com/news/technology/software-growth-stocks-work-from-home-plays-fall-as-states-reopen/






https://research.investors.com/quote.aspx?symbol=DXCM

https://www.investors.com/how-to-invest/investors-corner/chart-reading-basics-how-a-buy-point-marks-a-time-of-opportunity/

https://research.investors.com/quote.aspx?symbol=FTNT

https://research.investors.com/quote.aspx?symbol=FB

https://research.investors.com/quote.aspx?symbol=SIMO

https://research.investors.com/quote.aspx?symbol=VEEV

https://research.investors.com/quote.aspx?symbol=NFLX

https://research.investors.com/quote.aspx?symbol=NEM

https://research.investors.com/quote.aspx?symbol=REGN

https://research.investors.com/quote.aspx?symbol=AMD

https://www.investors.com/how-to-invest/investors-corner/how-to-buy-stocks-why-the-10-week-moving-average-offers-new-entry-points/






IBD Big Picture: Why Growth Stocks Suggest The Stock Market Uptrend Is Not Ready To Quit


It's also encouraging that market leadership is

broadening. The Nasdaq's advance-decline line is now

on a higher trajectory after three weeks in which it

lagged the index's advance. The NYSE's advance-

decline line shares a similar shape, although it tracked

the S&P 500's May retrenchment.

Advancing stock led decliners by a 2-to-1 ratio on the

Nasdaq Wednesday and by better than 13 to 3 on the

NYSE.

Volume rose on the Nasdaq and was indicated higher

on the NYSE. What could have been a distribution day

earlier in the session turned out to be a day of

accumulation. No matter, the amount of distribution in

the current market is negligible.

President Donald Trump said he plans a strong

response to China's security law, which limits Hong

Kong autonomy.

Stocks seemed ready to pause when the S&P 500

got to the 3000 level this week. As The Big Picture

had noted, that's the type of major round number

that can trigger profit taking. If institutions want to

lock in profits, they'll take any excuse to sell. The

S&P 500 milestone seemed to be the trigger.

S&P 500 Closes Above 3000

The S&P 500 rebounded to a 1.5% gain Wednesday

and closed above 3000 for the first time since March

5. The Dow Jones Industrial Average added 2.2%.

Small caps shined, as the Russell 2000 rallied 3.1%.

It is a good sign for the market when smaller stocks

— often viewed as higher risk — participate in a

market rally.

https://services.investors.com/pdf/IBD2605152515GMI2.pdf



https://www.investors.com/how-to-invest/investors-corner/how-to-spot-stock-market-tops-track-the-distribution-days/

https://www.reuters.com/article/us-global-oil/oil-slides-on-u-s-china-tensions-doubts-about-russian-output-cuts-idUSKBN233016?feedType=RSS&feedName=businessNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+reuters/businessNews+(Business+News)

https://www.reuters.com/article/us-global-oil/oil-slides-on-u-s-china-tensions-doubts-about-russian-output-cuts-idUSKBN233016?feedType=RSS&feedName=businessNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+reuters/businessNews+(Business+News)

Review of Some Market Basics:

The Stock Market is

a dance between

price and volume.

- - - - - - - - - - - - - -

Learn to follow the

dance steps and the

message will

become clear!

KEY POINT:

Buy Stocks on _______________________ & _______________________

Sell Stocks on ________________________

KEY POINTS:

Charts have two parts: (pg 5)

1. __________________________ 2. __________________________

SELLING STRATEGIES FOR MAXIMUM PROFITS WORKSHOP www.ArmchairInvestor.com 9

KEY POINTS:

Information used to make investing decisions are categorized as:

1. Fundamentals (Financial Data): Sales, Earnings , Return on

Equity, Earnings, ______________________

2. Technicals (Charts): Price & Volume, Moving averages, Bases,

__________________________.

5/28/2020 IBD Meetup Charlotte Hudgin 214-995-6702

IBD Rating Explanation Range

EPS Earnings/Share Earnings per share growth over 3-5 years w emphasis on last 2 months

80 or above

A/D Accumulation/

Distribution

Measure of institutional buying (A-B) or selling (D-E) over last 13

weeks A or B

RS Relative Strength How this stock has performed over

the last 12 months. 80 or above

Composite Composite Rating

Composite of all IBD ratings - more weight placed on EPS and RS

Rating, and the stock’s percent off its 52-week high

90 or above

• >>>>> The market must be in an Uptrend • A higher rating is always better. • Letter ratings go from A (best) to E (weakest). • IBD Number rankings go from 99 (best) to 1 (weakest). • Never buy on these ratings alone. Strong chart action is imperative. Price above $15

and average daily volume above 500,000 = $7.5 million per day is preferred.

Use Investor’s Business Daily Ratings to Find Best Stocks to Research These are Charlotte’s Shortcuts:


MARKET ACTION (Nasdaq) OVER THE LAST 20 DAYS

(For a full explanation of the terms in this table see end of this newsletter

Date Close Index %

Change

Volume %

Change

Current

Trend Day

Count

Type of Day: Accumulation,

Distribution or

Neither (—)

CONSISTENT WITH:

UPTREND OR

DOWNTREND?

4/29/20 8914.71 +3.6% +16.3% 19 Major Accumulation UPTREND

4/30/20 8889.55 -0.3% -4.1% 20 –– UPTREND

5/1/20 8604.95 -3.2% -9.9% 21 –– UPTREND

5/4/20 8710.72 +1.2% -9.5% 22 –– DOWNTREND


5/6/20 8854.39 +0.5% -7.9% 24 –– DOWNTREND



5/11/20 9192.34 +0.8% +3.6% 27 Minor accumulation UPTREND

5/12/20 9002.55 -2.1% +9.9% 28 Major Distribution DOWNTREND

5/13/20 8863.17 -1.6% -1.6% 29 –– UPTREND

5/14/20 8943.72 +0.9% -7.0% 30 –– DOWNTREND

5/15/20 9014.56 +0.8% +7.3% 31 Minor accumulation UPTREND


5/19/20 9185.10 -0.5% -5.4% 33 –– UPTREND


5/21/20 9314.63 -0.7% -15.4% 35 –– UPTREND

5/22/20 9324.59 +0.4% -2.6% 36 –– DOWNTREND

5/26/20 9340.22 +0.17% +20.1% 37 –– ––

5/27/20 9412.36 +0.8% -0.6% 38 –– DOWNTREND

How is the market?

SELL SIGNAL: HEAVY DISTRIBUTION If a stock's price falls persistently on heavy volume, it usually signals a shift in

professional investor sentiment in which sellers predominate, making any price

advances more difficult. Distribution is counted in days and weeks

Your daily journal of your stock’s price-volume action and your analysis will identify

concentrations of Distribution. A price movement of 1% or more on 1+% increase in

volume is a Major Distribution day. I call them “BIG D” distribution days.

Smaller moves with increased volume indicate minor distribution days and these

definitely add into the equation..

I use these Big D Distribution concentrations as a SIGNAL to ANALYZE FURTHER:

SELLING STRATEGIES FOR MAXIMUM PROFITS WORKSHOP www.ArmchairInvestor.com 12

Offensive Selling for a Profit


Finding the Winning Stock Look for a stock that dances the “2-step”

Step 1. THE RIGHT STOCK:

A company that is :

• P and _G________ing

A stock that is :

• Big enough to be credible measured in _________ & ___________

• Outperforming the m___________. The ___________ ________ Rating: ___ - 99

• In a strong In___________ Group Rating: ___ - 99

• Being Accumulated by institutions: ____________/____________rating of ___or __

Step 2. THE RIGHT TIME:

• The market is in an ___________

• The stock is ________ ___ powerfully from a strong base

Profitable

GROWing

Price & Vol

RS 80-99

60+

A or B

Uptrend

Breaking

out

Strong


Finding the Winning Stock Look for a stock that dances the “2-step”

Step 1. THE RIGHT STOCK:

A company that is :

• Profitable and _Growing___

A stock that is :

• Big enough to be credible measured in _Price__ & _Volume___

• Outperforming the market_. The _Relative Strength_ Rating: 80 - 99

• In a strong Industry Group Rating: 60 - 99

• Being Accumulated by institutions: Accumulation/Distribution rating of _A or B

Step 2. THE RIGHT TIME:

• The market is in an _uptrend_

• The stock is breaking out powerfully from a strong base

Profitable

GROWing

Price & Vol

RS 80-99

60+

A or B

Uptrend

Breaking

out

Strong


15 5/28/2020 Weekly Classes © Armchair Investor(SM) 2002-20, Charlotte Hudgin 214-995-6702 Kyle

16

The CUP base High-Low-High

15% -35%

drop*

6 - 65 weeks

Price movement inside a cup

should be controlled, not wild

High

Low

High


17 5/28/2020 Weekly Classes © Armchair Investor(SM) 2002-20, Charlotte Hudgin 214-995-6702

A ”Bounce off the 50-day

moving average line”

= Golden Triangle


18 5/28/2020 Weekly Classes © Armchair Investor(SM) 2002-20, Charlotte Hudgin 214-995-6702 Ben

19

The FLAT base High-Sideways-Up

<= max

15%

drop

5 weeks or more

Any price movement can happen

inside the FLAT base as long the

intraday highs and lows stay

within 15%

Every

base

starts

with a

prior rise

to a high

Price

breaks out


21 5/28/2020 Weekly Classes © Armchair Investor(SM) 2002-20, Charlotte Hudgin 214-995-6702 Thomas


23 5/28/2020 Weekly Classes © Armchair Investor(SM) 2002-20, Charlotte Hudgin 214-995-6702 Ben


27 5/28/2020 Weekly Classes © Armchair Investor(SM) 2002-20, Charlotte Hudgin 214-995-6702 FG


29 5/28/2020 Weekly Classes © Armchair Investor(SM) 2002-20, Charlotte Hudgin 214-995-6702 Ken


31 5/28/2020 Weekly Classes © Armchair Investor(SM) 2002-20, Charlotte Hudgin 214-995-6702 Kyle FG

Dow Jones Futures: Vertex, Netflix Lead Bullish Rebounds In

Coronavirus Market Rally; Boeing 737 Max Production Resumes


ED CARSON 06:23 PM ET 05/27/2020

Dow Jones futures were little changed late

Wednesday, along with S&P 500 futures and Nasdaq

futures, as Boeing (BA) resumed 737 Max

production. The coronavirus stock market rally

powered ahead Wednesday, with real world sectors

such as airlines, retailers and banks outperforming

for a second day.

The Nasdaq rebounded for solid gains while Vertex

Pharmaceuticals (VRTX), Netflix (NFLX), Google

parent Alphabet (GOOGL), Microsoft (MSFT),

Tesla (TSLA), ServiceNow (NOW) and Regeneron

(REGN) staged bullish reversals.

Boeing 737 Max Production Resumes

Boeing 737 Max production has resumed, though

the ailing jet is still grounded. The Dow Jones

aerospace giant halted 737 Max production in late

January, as orders plunged. Air travel has plunged

during the coronavirus crisis, bringing jet orders

overall to a virtual

halt. Restarting Boeing 737 Max production

likely indicates the company sees regulators

giving the go-ahead for flights soon. Boeing

stock popped 4.5% overnight. It's also

positive for Boeing suppliers, as well as

manufacturing and the U.S. economy

generally.

Meanwhile, Autodesk (ADSK)

and Workday (WDAY) reported earnings

after the close. Autodesk stock fell modestly

while Workday stock spiked after closing in

buy range.

Catch Up Market Rally

The Nasdaq had been getting extended vs.

the Dow Jones and S&P 500 index, as tech

stocks thrived or held up well during the

coronavirus shutdowns. With states

reopening businesses and coronavirus

vaccine hopes rising, sectors benefiting

from an economic recovery are doing well.

https://www.investors.com/author/carsone/

https://research.investors.com/quote.aspx?symbol=BA

https://research.investors.com/quote.aspx?symbol=VRTX

https://research.investors.com/quote.aspx?symbol=NFLX

https://research.investors.com/quote.aspx?symbol=GOOGL

https://research.investors.com/quote.aspx?symbol=MSFT

https://research.investors.com/quote.aspx?symbol=TSLA

https://research.investors.com/quote.aspx?symbol=NOW

https://research.investors.com/quote.aspx?symbol=REGN

https://www.investors.com/news/boeing-stock-aerospace-giants-faa-cdc-discuss-safe-air-travel/

https://research.investors.com/quote.aspx?symbol=ADSK

https://research.investors.com/quote.aspx?symbol=WDAY

Dow Jones Futures: Vertex, Netflix Lead Bullish Rebounds In

Coronavirus Market Rally; Boeing 737 Max Production Resumes


Vertex stock is on IBD Leaderboard, along with

ServiceNow stock and Microsoft stock. Tesla

stock is on the Leaderboard watchlist. REGN

stock, VRTX stock and Google stock are on

SwingTrader.

MSFT stock and NOW stock are on the Long-

Term Leaders list, while GOOGL stock is on

the Long-Term Leaders watchlist.

Vertex stock, ServiceNow stock and Netflix

stock are on the IBD 50 list. So are Autodesk

stock and Workday stock.

So far, the S&P 500 is catching up rather than

the Nasdaq tumbling. Several winners in the

coronavirus stock market rally are finding

bullish support at key levels. That could offer

new buying opportunities for investors who

may have missed out on the initial breakouts.

Bullish Reversals

Vertex stock, Regeneron stock and Netflix

stock staged strong upside reversals, flashing

buy signals. ServiceNow stock, Microsoft

stock, Google stock and Workday stock tested

support near buy points, with NOW and MSFT

stock also bouncing somewhat from their 21-

day lines.

Tesla stock bounced off its 21-day moving line,

providing a mini-shakeout. TSLA stock is just

below a buy point.

https://leaderboard.investors.com/#/leaders/leadersnearabuypoint

https://www.investors.com/product/swingtrader/?artProdLink=Swingtrader

https://www.investors.com/research/ibd-long-term-leaders-screen/



https://research.investors.com/stock-lists/ibd-50/



A Golden Triangle?



Avg Vol We know the HIGH volume during the Feb-

March market crash is still in the 50-day

average volume calculation. So “How much

can I adjust the average volume line DOWN

to compensate for the false volume.


50 5/28/2020

REMEMBER:

"THE MARKET CONTINUES IN

THE DIRECTION IT’S GOING UNTIL IT DOESN’T."

Weekly Classes © Armchair Investor(SM) 2002-20, Charlotte Hudgin 214-995-6702

Working together to achieve higher returns in life Armchair Investor

0

2

2


51 Dallas IBD Meetup Questions? Charlotte Hudgin 214-995-6702

Dallas IBD Meetup Comment Sheet

Name: ______________________________________________________ Phone ___________________________ I am a FIRST or SECOND time visitor (please circle if you are!) City:__________________ Zip code __________________ Email __________________________________________________________

Which location did you visit? DALLAS / Dallas Rate THIS Meeting : 1 2 3 4 5 6 7 What are you looking for when you come to this FW IBD Meetup? Circle all that apply to you: How to make money in stocks Understanding Bases Understanding other Buy Points Using MarketSmith Using Leaderboard Best places in Investors.com for ideas Understanding Fundamentals (financials) Understanding IBD Ratings Becoming a Broker/Financial Planner Finding an Investing Buddy Finding a Date for next weekend Other:__________________________________________________________________________________________ Thank you for joining us tonight, your continued support of this group and your input below.

Your IBD Meetup Team

If you liked this Meetup, please remember to rate this Meetup. A good rating gives us clout with IBD and gets better guest speakers!

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5/28/2020

Fort Worth Investor’s Business Daily Meetup Group€¦ · 28-05-2020 · more). But if I...

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Transcript of Fort Worth Investor’s Business Daily Meetup Group€¦ · 28-05-2020 · more). But if I...