Pignorant said:

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Twitter not doing so well.

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Found support but their enforcement policies suppressing well known/followed members was a bonehead move. Dorsey's head is on the chopping block.

On the 20k lookout a lot of chatter across large traders approaching the Christmas weekend with trepidation, due to rumors of terrorist activity. It's pretty much the same as we get going into July 4th and other celebratory periods. We have a quiet weekend and Tuesday we likely are right back into the 20k watch.

One thing this weeks action has done is produce a consolidation period. Nervous sellers and top watchers are selling yet the markets are absorbing the action. That sets up the potential for a further move upward than the 20250 area, once 20k is broken. Volume, understandably has been coming down day over day into the long weekend so don't expect much outside of the weekly ranges today.

Wishing all a Merry Christmas, safe travels and great family time. Here's to a prosperous 2017!

Thanks for all the wisdom, advice, knowledge and insight you bring to the board OA1! A merry Christmas to you and yours as well!

20k in focus again early on. Don't be selling covered calls here. Buy calls in stocks that are at or coming just off wave lows. NVDA, TWTR, CHK for example. Look for my example stock from inceptiom bottom PBI to move tbrough last high and continue trend upwards.

Little CIE is showing next wave attempt back towards $1.40 major resistance. If you applied the covered call strategy and pocketed the 20 cents/share premium you reduced your holding price. Unfortunately the next $1.50 calls are all the way out to April 17th. The only way I'd trade those as covered calls is if you can get filled at $0.40-$0.50. I imagine some will get filled if we hit $1.40 this week, due to the amount of time remaining. Selling covered calls no more than 50% at those prices with your share holdings bought at or around the $1 mark is a no brainer.

Based on average per share entry of $1.04 do the math and tell me how you compare to the fund managers or S&P.

Also those GILD buys on clear major support under $72 are solid. It made a nice move on wave 3 from major support. Only issue with GILD is the wave tops have been progressively lower. If it breaks that previous $76.32 then it could really give a good ride upward.

PBI cup and handle forming as it approaches resistance. Break $16.25 and it will be over $17 pronto. From our initial accumulation entries we are looking super solid.

oldarmy1 said:

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DOW 20k

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19,999.63

oldarmy1 said:

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Also, as a reminderm we've talked about how market makers/big money love to hit you with the "fakey move" before a breakout. I had mentioned before the previous breakout that I'd likely trade the opposite/contrarian to the initial move. You can see that the big money broke the box with an initial down move before racing higher. You gotta love and hate them for how they do their thing...

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TRUE TRUE TRUE the market is designed to get as much money out of you as it can

that's not to say be scarred and passive. . .just don't get married to thinking things have to go the way you think it will (be ready/willing to flip the script when things change . . .you can think of it like taking both a BEARS/BULLS jersey to the game and switching the other on when that team takes control/advantage--it makes for a lame sports fan but a smart trader (I'm not say if we're ripping buy or if it's falling sell, usually quite the opposite, but that doesn't matter for point of this, I just meant don't get so married to one or the other where it clouds your judgement, been there in my early days and not good)

manage both ends of the spectrum (fear and greed), while easier said than done and perhaps the biggest piece to this whole game YOU MUST stay mechanical to your skillset (whatever you do that works), manage profits (when the market gives you a decent % money on a play, don't give it a chance to take it back), manange losers (lose a battle not a war) . . . avoid unneeded exposure, always lower basis, stay small (relatively speaking) until the time is right (*take advantage of opportunity/other peoples fear), and I strongly advise the kicker of using options either in conjunction or on their own to increase your probability of success and put time (decay) on your side

PBI Cup & Handle showing it is wanting to break out for its next leg higher. Note the hard support keeping the days lows tighter as volume support increases into forming the handle during the negative days on the DOW.

So the macro chart above cup and handle points to a breakout move coming. Now here is a day traders INTRADAY cup & handle that shows the breakout taking it to current day highs.

PBI $16.50 premarket with the Cup $ Handle signal ringing pure.

Fred Piard, a good analyst also sees the momentum behind PBI. What I set out to do with this specific stock was to show/teach you how to identify a stock reaching its long-term trend reversal pivot point, and how I accumulate large positions on these specific stocks with confidence. Here's Fred's list and take on various industrials:

Valuation Dashboard: Industrials - Update
Jan 6 2017, 08:58
About: XLI Includes: BA, DAL, GBX, HII, LUV, MAS, MLHR, NSP, PATK, PBI, RHI, SPY, SRCL, UAL, WNC, VIS, FIDU, IYJ, FXR, UXI, RGI, SIJ, IFLY, AIRR, INDF, JHMI
Summary

Valuation metrics in Industrials.
Evolution since last month.
A list of stocks looking cheap in their industries.
This article series provides a monthly dashboard of industries in each sector of the GICS classification. It compares valuation and quality factors relative to their historical averages in each industry, and gives a list of 10 stocks. I update every month eight lists like this one covering all sectors (some sectors are grouped). The eight lists together have returned about 25% in 2016. If you want to stay informed of updates, click "Follow" at the top of this page. My Marketplace Subscribers have an early access to the stock lists before they are published in free-access articles.

Executive summary

Airlines have very attractive Price/Earnings ratio and Return on Equity, but a bad Price/Sales relative to its own historical averages. An oil price far below the average for the same reference period may explain a part of this discrepancy. Professional Services look close to fair price. Electric Companies and Trading Companies are a bit more overvalued. All other industries are more significantly overpriced.

Since last month:

P/E has improved in Aerospace/Defense, deteriorated in Trading Companies, Services, Airlines, Marine and is stable elsewhere.
P/S has improved in Conglomerates, Road/Rail and deteriorated in Electric Equipment.
P/FCF has improved in Aerospace/Defense and deteriorated in Machinery, Services.
ROE has improved in Aerospace/Defense, Building products and deteriorated in Machinery, Services, Transport Infrastructure.
The SPDR Select Sector ETF (NYSEARCA:XLI) has underperformed the broad market by 2.5%.
The five S&P 500 industrial companies with the best momentum on this period are Southwest Airlines Co. (NYSE:LUV), Masco Corp. (NYSE:MAS), Pitney Bowes Inc. (NYSE:PBI), Robert Half International Inc. (NYSE:RHI), Stericycle Inc. (NASDAQ:SRCL). LUV hit an all-time high this week.

PBI taking a dive after earnings announcement. OA do you see this as an Opportunity to buy more ?