Original subtitles

Okay folks.

Welcome back.

Listen to, uh, the ICT mentorship, June, 2017 content.

This is ICT stock trading, building buy watch lists.

Okay.

So what we have in front of us is the list of the Dow Jones,

industrial composite Stockland.

This is all 30 stocks that presently make up the Dow Jones industrial average.

And this discussion is going to be highlighting.

Just focus on these Dow 30 stocks, the same applications, obviously

done on the S and P 500 and NASDAQ 100, but it's not necessary.

You can make all the stock trades you'd need just from the Dell Jones 30 stocks.

As we already disclosed in the first lesson I gave you the seasonal

influences per calendar month.

We're gonna be focusing on by watch lists.

So there's going to be focused primarily on the bullish months.

We have a few months in here that are bullish, but the primary focus

I want you to have is not that we're looking for individual.

Trades, but we want to be looking for areas in which the market

will be wanting to trade higher.

So we're gonna be focusing primarily on two segments of the market in

terms of the calendar year, what we're looking for bullishness, it's going to

be seen in the first half of the year and in the second half of the year.

It's a building by watch lists.

Okay.

So the filter number one we have to know is the stock market poised to rally.

In other words, is it technically sound creed.

You anticipate the stock market to rally higher and filtering.

Number two is during bullish months, we want to be selecting higher, low

stocks in the word stocks that have made a higher, low the February to

may months or ideal long swings.

And the October to January months or ideal lungs swing setups as well.

Now, in my first discussion about stock trading, it, it was on the free

tutorials, how to pick a stocks, template.

It focused primarily on the fall.

What we're going to talk about is the spring session here.

And we also add some things to it, to build in some additional insight.

No, the majority of index stocks generally rise when the market

itself or a major market rallies or moves higher in high tide, all

boats rise, basically analogy there.

So stocks that are trending higher on the weekly, prior to our

condition, looking to be a buyer, they're going to be ideal scenarios.

We want to avoid safe stocks like Verizon GE, or general electric or.

Strong stocks will have an obvious bullish structure.

The discounter raised with index SMT.

We'll highlight companies that are under heavy accumulation,

throwing seasonally, bullish months.

Try to narrow the selection to two to four companies during your stock selection.

And leadership stocks that are aggressively bought by institutions will

be found to fail, to drop lower during bullish months when the three major stock

indices decline until one of those indices fails to post a lower, low comparably.

So what am I saying here during periods of seasonal tendencies for stocks to

move higher, as we outlined in the previous slide in the previous slide.

Those months that are bullish.

We're going to be focusing primarily on when the three

averages are making lower lows.

When the NASDAQ, the S and P and the Dow, one of those averages are

going to fail to make a lower low.

So that signals to the overall market trend change to bullishness.

At that same time, we're going to be looking for stocks to

make higher highs at this.

Juncture, if it doesn't occur for that particular stock, then

obviously that stock is going to be discarded and not concerned with.

So we're focusing primarily on the February to may portion of the year.

Okay.

And I've already gone through the Dow 30 stocks to save time.

Cause it's less than could easily have been three hours long.

If I allow that to.

So I went through and I filled it out.

All the stocks that met the criteria of going from January into February,

where the dowel Jones, which is the solid line green line, it's trading

lower going in from January, 2017 rates towards the mid point of January,

2017, it made a lower low while the.

Apple incorporated.

AAP L stock failed to go lower at that same time.

So the month of January, apple was unwilling to go lower.

When the Dow Jones industrial average went lower.

So apple was showing relative strength here.

And that only occurs when large institutions come in

and they sponsor by programs.

So lots of accumulation, lots of buying took place.

Around that 1 18, 1 20 per share.

And from February all the way up into may, there was a nice appreciation

and the share of apple and subsequently it went higher into may.

And just this month, we've seen it, the client at the time of this

recording in June, but with CA.

One stock market between February and may.

We've seen the telltale hallmark sign of accumulation by institutions

where they failed to make a lower, low against the Dow Jones industrial.

And we can see the subsequent price move with this stock.

So between February and may, you can see a very nice rally up and

in appreciation in the sheriff.

The next stock that was filtered from going through the all 30 stocks and again,

removing Verizon G and Coca-Cola was.

And the same scenario here we see in the month of January leading into the month of

February, where it begins the bullishness.

Again, the context is we're going to see them buying early.

So if they expect seasonally that February into may, generally sees

bullishness, the Dow Jones have created a lower low in the month of January,

but the share price of felling was unwilling to go lower in January.

So it diverged bullets.

Notice that it gapped up in January and then that gap was closed in the second

trading day of February discount array.

So we had that fair value gap traded down, closed into it, and then

rallied away price rallied up into may, may had our typical decline

into the third week of may then.

Started its movement higher from there.

And since traded even higher from February's low, but look at the

bulk of that bullishness, that scene between February and may.

This regard anything happened in may.

We're just looking for the seasonal tendencies that gives us a play for a

stock trade during the first portion of the year, beginning of February.

The next doc that met the criteria of a higher, low and buck, the trend that

was seen with the lower, low in the Dow Jones, industrial average in January,

let's see between February and may nice little appreciation in the share price,

but then notice in may when seasonal tendencies change from bullishness.

It made the high and it's been trading off rather precipitously on the downside.

Another company is home Depot that met the criteria in January, the Dow Jones.

You can see what that solid line in the background made a lower low while the

home Depot shares were failing to make that lower, low, and diverts around that.

$135, a one on $36 a share price in January.

Then ultimately that large update in January, it was creating a

liquidity void and it treated down into in February closing that range,

fair value gap, discount array.

And then you can see obviously the price movement between the February anticipated

bullishness beginning and to manage.

Pretty very nice movement higher.

Okay.

Next one is McDonald's.

It's a, the killer of, uh, arteries, the Dow Jones.

Again, we can see that same lower lobe informed.

Basically the same overlay that's being applied.

You can do this from bar chart.com.

Just add a comparison and do a left axis display on dollar sign D O w

I that will give you the Dow Jones, industrial overlay against any share,

uh, or company price of a stock.

And I have.

The lower, low showing on a dowel Jones that was seen in January, 2017.

And the shares of McDonald's were diverging bullishly that

didn't make a lower low in January and rallied higher up.

And you can see the really nice movement between February's inception of the Bush

seasonal tendency up into a share price of $142 that subsequently kept trading

and moved as high as $153 a share.

Okay.

Our last example here that was filtered out of the process.

We have the dowel Jones again, making that lower, low in January,

but the share price of visa was unwilling to make that lower, low.

And between February and may.

We've seen a nice little appreciation between February,

beginning and the month of may.

So.

So I have 30 stocks.

We've already filtered out a few of them that are just

simply not gonna be followed.

And again, they're Verizon Coca-Cola general electric and in my opinion,

Even Microsoft and Intel would be on that list as well, because they're

just companies, in my opinion, they, they're just not exciting anymore.

Now, those things may change in the future, but at the time of this

recording, I'm not real excited about this particular company.

So we feel, we figured it out, basically six stocks out of that.

Dao list.

And the first is apple.

The second is belling.

The third is Disney.

The fourth is home Depot McDonald's and the final one and six is the visa.

So selecting two to four from this list would be accomplished

by selecting call options.

Affordable as well as where each were trading in historical terms.

Now, a stock from this list that was too extended from a weekly

or daily market structure would eliminate it from the list.

And what I mean by that, when we do low resistance, liquidity runs, what we're

doing is, is we're anticipating and run through an old high or run through an

old, low, a break in market structure.

That's already qualified.

And therefore, if we're looking for stocks to be moving higher, Institutions like

to see big breakouts, big movements, higher, especially on a weekly chart and

everything fundamentally suggesting it should be getting going higher in a major

market suggesting it's going to go higher.

And we couple that with a seasonal tendency for the market to go

higher, you have blue ribbon recipe for wonderful results.

If you have a market structure, hide, it's really.

Higher than where you're going to be entering at generally, you're going

to see some lethargic price action.

It might move a little bit, but then eventually it'll Peter out and either go

sideways or actually altogether reverse.

Now quarterly increases in sales and profits would also be a strong

factor in keeping a stock on this list and blending a simple seasonal,

fundamental, and ultimately technical trading process for selecting possible

winning stocks is the outcome.

So we have 30 stocks to begin with.

We whittled it down to six stocks.

So now let's take a closer look at these individuals, six docs.

Okay.

The first in the list is apple Inc.

As you can see here, we had an old high back in the 2015.

And at the time of these seasonal tendency for 2000 seventeens, February

month, price was trading in a position where it was poised to break out.

And as a low resistance liquidity room above 1 35, we can anticipate

institutions step in to do that very thing and see a breakout.

So this stock was actually very strong from a weekly standpoint because

each one of these bars are weekly representation of the share price

movement for apple and corporate.

You can see the overall movement higher.

Every down close candle was supporting new buying from April, 2016, all the

way leading up into February, where they finally made an expansion and ran

right through the 1 35 and ultimately always all the way up to 1 55 per share.

Next one is billing.

Again, very similar.

We had an old high back in 2015.

Marco was consolidating.

We saw a price down below the one 20 level clearing out cell stops.

And then we started seeing institutional order flow supporting down closed candles.

Up close candles were being broken.

We have very clean levels at one 50 and the old high around that one 60 level.

Ultimately, as we moved into our Bush seasonal tendency in February,

2017, the mark was sitting right at old highs, perfectly ripe

for a breakout institutions.

Love this set up.

They will buy, buy a lot of it.

If it's funneling any sound as a company, obviously billing is, and

from $160 a share all the way up.

Ultimately $200 a share.

It looks like so long.

Short is very, very good price movement.

The weekly scenario here again fits the bill.

So apple and billing so far are really strong candidates or would

have been strong candidates.

Let's say it like, like that.

Michael, keep it in proper perspective because everything

we're teaching is hindsight.

Okay.

Our next one is Disney and I want you to look at this.

Okay.

We have the 2015 highs around the summer, and then we have a

November high around that one 20.

So it looks like they're having difficulty at one 20 and then price made a short-term

low in April, 2016 may time period.

And we were re at that point of breaking out above that, but we had a

really weak market structure because.

We have already blown through a short-term high.

And while we did have equal highs around one 20, it was far less likely to see

it appreciate based in comparing what we saw on apple and billing, where it

was very clean highs, and there was already near the highs this we had to

have it rally about $15 before it even gets to the old high scene in 2015.

So it has to have a lot more movement to get to a new breakout.

Institutions won't be that aggressive about buying this type of stock because

it's not poised technically, regardless of what the fundamentals may be.

It has to, they have to wait until it gets to a technical level

like that one 20 incidentally.

Um, the first part of this year in 2017, all the talking

heads were calling for 1 21 25.

And that was a built in sentiment idea as a contrarian idea, it went

as a little bit over one 16, and then it's been trading softer since.

So.

Contrast look at what this weekly chart was showing you

versus what was shown in apple.

And in belling, if you have to go back and re run the video to the portion

where it showed the apple and billing individual charts, and you'll see,

there's a glaring difference between what we see as the old highs here at

one 20, it would have to gain a lot more ground versus where apple and Boeing

were at the time of February, 2017, both.

Home Depot again, very similar to billing in apple at a time of the February,

2017 version of seasoned tenancy.

And when a Dow was making a lower, low, how many, if it was not willing to do

that, and we were real close to the old high, you know, what's going to happen.

It's just going to step in by it, surge it through.

Nice break.

$20 a share appreciation.

Okay.

Next one here.

McDonald's and we can see at the time of our bullishness in

2017, we had price trading just inside of a larger consolidation.

And we can see price had already respected a or a block around that one 20 and

anticipating a low resistance liquidity.

To run that 130, $2 a share price, and finally broke out a few months later

and had a very aggressive run above 1 30, 2 trading as high as $155 a share.

Really nice have this one coupled with apple and belling home Depot as well.

Very strong.

So there's four candidates, right?

And the final one here is visa, very similar, where you're looking at at

the time of 2017, February foolishness anticipated visa was trading really

close to its highs and ultimately they surge price through and ultimately

seeing it appreciate about $10 a share.

So while this one was a little lethargic, nonetheless, it still met

the criteria as far as looking for high.

Moves on the weekly chart, the structure was sound.

And while it didn't deliver it as high as a share return, appreciation that

the other four McDonald's home Depot billing and apple did it still was very

favorable in terms of the ferreting out process that we're outlining here.

So when we go through the process of going through the February to spring highs in

the stock market, Begin with the Dell 30.

Uh, you can do the NASDAQ 100 the same way and the S and P 500.

Now that one's going to take a little bit more work to go through.

You'll have a lot more stock selections to choose from.

Now, once we get through the process of picking out which ones have a

potential weekly breakout, and yes, I'm saying breakout because stocks

are predisposed to trade higher.

And if you have a fundamental basis to expect prices to go higher as, as

a whole, when the stock market, and you're looking at seasonally, they go

higher and you're looking at relative strength, ideas, supporting with

SMT divergence between the indices.

And that stock has shown unless they go lower.

You have every portion of a winning recipe for that stock to go higher.

It doesn't mean you're going to be right.

It just means that statistically speaking in historically speaking,

these elements are there all the time for winning stocks until next

time I wish you good luck and good.