All language subtitles for Lesson 3 - Building Sell Watchlists EN

Welcome back folks, less than three
of the STT stock trading, June, 2017.

Content.

This lesson is building cell watch lists.

Okay.

As we disclosed in the building
by watch lists, we're going to

be using the Dow Jones industrial
composite stock list here.

And you quickly see here, not
all stocks go up when there's

a bullish or bearish idea.

There's a disparity amongst all
the index stocks generally, unless

it's a very strong bullish day.

Even then you might get
one or two laggards.

It doesn't go up.

Or if it's a strong down there.

Not all stocks will go
down, so we'll go up.

But we're going to focusing on when
conditions are ideal for bearishness

so we can build, sell, watch list.

We're shorting stocks.

Okay.

Again, as a reminder, the Dow
Jones industrial seasonals in

this list here, we're gonna be
focusing on the bearish months and

any consolidation monthly between.

Okay.

You can see that here.

And we're gonna be looking at

the first portion of the
year from may through July.

That's the primary area of which
we're gonna be focusing on.

So building cell watch lists filter
number one is obviously the stock

market must be poised to decline.

And filter number two during bearish
months, we're gonna be looking

for stocks that make a lower high.

Okay.

The months of January and may
through July or ideal short swing

setups, majority of index stocks will
decline with the major market decline

stocks that are trending lower on a
weekly prior to this setup or ideal.

We're going to be avoiding
safe stocks like Verizon GE,

and Coca-Cola weak stocks.

We'll have obvious
bearish market structure.

The premium arrays with index SMT
will highlight companies that are

under heavy distribution during
seasonally, bearish months.

We're gonna be trying to narrow the
selection down to two to four companies

during the stock selection process.

And leadership stocks that are
aggressively sold by institutions will

be found to fail to rally higher during
bearish months when the three major

indices rally, until one of those indices
failed to post a higher high comparably.

Okay.

You can see here January generally is
a verus month, but we're going to focus

primarily on the condition from may.

Through the month of July.

So we're looking at the entire
encapsulation of the beginning

of may to the 1st of August.

Okay.

And again, we're gonna be
focusing primarily on the index

SMT diversions, same here.

And this is the 2015 may
June, July time period.

And the indices failed to make
comparable higher highs, NASDAQ

at the top made a higher high, but
the doubt in the S and P at the

bottom failed to make a higher high.

So we have classic fingerprint
for distribution in the stock.

Okay.

In our first stock room you're looking
at, and this is a weekly chart.

So I'm going to jump right to
the weekly and skip a step that

we did in our previous lesson.

But you can see how that was
done, just using it with greater

detail, using a daily chart for
all of the stocks we've used here.

Now I've already done
all the leg work for you.

I went through and found all the
markets that were in bearish,

institutional order flow for the weekly.

And again, every chart we're
showing here is a weekly chart.

And the first in our list
is a XP or American express.

And we're focusing again
on the 2015 time period.

But first we're gonna look at the effects
of what the may, the July time period

looks like when the market's bullish.

And you can see here while it did call a
high in the marketplace, the green KeyMath

line, that's the Dow Jones and it failed.

To make a lower high.

Now there's one candle in here I
could have made an argument about,

but I'm not going to do that.

We're just going to say that there
was no directions because the

rules are, if it's not obvious,
there is no divergence on the SMT.

So while the markets were bullish, there,
there was no gravitational pull for stocks

to pull lower or fail to make a higher
high X, at least on this specific stock.

But in 2015, between may in the
1st of August, we can see here.

That the Dow Jones leading up into may.

The Dow was making higher highs in
that green commute community line while

the American express stock shares.

We're seeing failure to rally
comparably so that American

express was in heavy distribution.

And you can see how the may June, July
time period caused a seasonal high in

price traded off rather aggressive for
around $80 a share all the way down to

almost $50 a share that's $30 a share.

Okay.

Next one we have here is caterpillar.

Again, we're focusing on when the market
was bullish, even though we're expecting

bearishness when the market's strong,
it can create a high, but we're looking

for a divergence with the indices and
it didn't give us a failure swing to go

with a lower high during those months.

So we can't do anything with that,
even though we can expect bears prices

overall, it didn't fit the mold there.

Here we have the may to August in
2015, and you can see the dowel

Jones was making higher high.

At the same time.

Caterpillar was failing to make a
higher high, and again, institutional

order flow and the weekly chart was
bearish and you can see how prices move

almost $90 a share all the way down to.

Almost $55 a share.

So about $45 a share on just about
$45 a share in terms of a price move.

These your index stocks
focused are not growth.

Stocks are high-flying stocks,
they're stocks that are just simply

traded, you know, on the big board,

the next doc in our list, see
the X or Chevron corporate.

And again, when the stock market's
bullish, we can see how it did cause

a high the form in Chevron corporation
in 2014, but we're looking for one

institutional order flow is bearish.

We see that's the case in may to
August of 2015 Dow Jones was making

higher highs at the same time.

Chevron shares, we're making lower highs.

So we were in heavy distribution and
notice the ramp up and acceleration

on the selling during the seasonal
decline between may and August.

Huge, huge decline from $110.

Share all the way down to $70 a share.

Massive.

Okay, the next one here
is X O M or ExxonMobil.

Again, just for comparison
sake when the market's bullish.

Yes.

The seasonal influence of made August
gives us a, a high in the shares,

but again, we're looking for heavy
distribution when institutional or

flows already bearish in that scene
here in may to August of 2015, Dow

Jones, again, posting higher highs
at the same time, ExxonMobil shares

were failing to make higher highs and
look at the acceleration and this.

From $90 a share all the way
down to almost $66 a share

really, really nice to move.

Okay.

And our last one on our
list is Walmart WMT.

And again, during market conditions,
when we're bullish and while we

expect bears between may to August.

We see a little bit of the client
here, but it has to be a bearish

market tune in on a weekly basis.

And that scene here on the weekly with
institutional owner, for being bearish

and the dowel Jones, making higher highs
at the same time, Walmart was failing

to make higher highs and from $80 a
share all the way down to 50, almost

$56 a share really nice move there too.

So out of this list, I think.

Was the one that would have been thrown
to the side simply because there was a

consolidation all through the fall of
2013 and through 2014, it rallied up.

But then there was really
no attempt to rally.

It was just a steady drift lower.

And while that may be in the indicative
of overall weakness in the 2015

calendar year, you really want to
find an area where pricing wants to

rally away kind of like a Judas swing
or market protection, any state.

We sell the rally in terms of
technicals while it was impressive

to see Walmart decline in here that
previous stock selections, they

would have been ones to choose from
in terms of looking for put up.

So we've gone through a rather
simplistic approach to looking

at how the stock market can be
timed and how it's consistent.

It's very consistent in terms
of what we're looking for.

And the reason why it's like that is
because institutions are by far and large

are doing the same thing all the time or.

Making an attempt to do the
same thing all the time.

Cause they have to have consistency.

So if their consistency is seen in
elements like we're teaching in the

last two teachings here, this one in
the previous, in terms of watch lists,

building, buy and sell watch lists.

If we understand that we can see them
or these generic traits that re reoccur

in the conditions of the marketplace,
that means that they have a simple rule

based idea that they keep following.

So if we can see.

We know that they're trying to
follow a program and the program

they're following leads, these types
of footprints every year, then we

know that we're onto something.

So we can track smart money because
of the volume, the sheer volume at

which they trade and they accumulate
or distribute these shares.

So if we have these generic
characteristics, Seen in price action.

And we know that they have a
rule-based idea and a program

that they follow all the time.

That means that the consistency
should hold up years to come.

So it's a method that you can pass
onto your children to help them

build their own individual retirement
accounts or add an additional

income or secondary income without
actually having to have another job.

So we're going to be using
these ideas to also work into.

Why it's important to know, even
if you've never had an interest in

trading stocks, or if you never have
an interest in trading stocks, even

despite seeing this information, because
I'm sure there's some of you in our

group, that's going to feel that way.

It's important to know what the.

Telltale signs are when we're
expecting to see them, because

it's going to give us insight.

So regardless of whether we're a
stock trader or a bond trader or

commodity trader, or an S and P trader
these four asset class studies that

we've done this month, or paramount
understanding the general market.

So I'm going to counsel you to
go through the NASDAQ 100 as a

homework assignment for this.

And I would like for you to all
contribute, or at least in your

own private study, you don't
have to do it on the phone.

Cause I know some of you just don't
want to deal with you're just nervous

or, or shy or bashful or whatever.

You just want to watch
everybody else do the work.

But.

Do the NASDAQ 100 stocks and
it's simply go on Google, do a

search of NASDAQ 100 index stocks.

It'll give you all the symbols for
the, for those 100 companies now.

Yes, it's a little more than three times.

The amount of Dow Jones stocks that we've
looked at here, but it's for your benefit

to do it and use the same parameters that
I won for the bi-model in the cell model.

Okay.

So we have watch lists
for both buying into.

Specific criteria.

It's not hard.

It's not a lot of acrobatics
to figure out what's going on.

If you're looking at a specific
time a year and a condition based on

institutional or flow, you're looking
for institutional ortho on the weekly

chart to be bearish or bullish.

And you're lining that up
with the seasonal tendencies.

As we described the, in both the building
by watch lists and filling, sell,

watch list tutorial until we get to.

And of our content for this month.

Uh, we're going to talk a little
bit more about valuation for

selections on stocks and they're
going to be incorporating options.

And then it's going to be a bonus
lesson for this month and how we use

all this information in terms of the
asset classes and why it's beneficial.

And until the next lesson, I wish
you good luck and good trading.