All language subtitles for Lesson 2 - Building Buy Watchlists EN

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.