Valeant Pharmaceuticals is a great example of why I switched my trading philosophy to trend following from an approach that more heavily used fundamental analysis. I’ve found over the years that big problems in either an individual stock or and index of stocks are hard to diagnose and determine the best course of action using pure fundamental analysis. Often you find that buying a dip in an emerging bear market can lead to disaster and big losses. Trend following using Stage Analysis provides simple rules that can be followed to avoid big downtrends whether they are in an individual stock or an index of stocks.
In this video I go over the ongoing pullback in the uranium sector from a Stage Analysis perspective. I also discuss the second ideal buy point in Stage Analysis which is the pullback that often happens to the breakout level when a market first moves into a Stage 2 bull market.
In this video I take a look at the TD Ameritrade IMX which is meant to show investor sentiment based up real trading activity within TD Ameritrade accounts. The interesting thing about this index is that it has shown how market volatility and corrections have a more significant impact on sentiment than rallies. This provides a wall of worry that the bull market has climbed to make new highs while keeping sentiment from becoming too euphoric.
The solar sector has caught my attention this year. I talked about the potential for this sector in a video I did earlier this year discussing sectors I’m watching for 2017. In this video I discuss the recent increase in volume in some solar stocks and my interpretation of the price action from a Stage Analysis perspective.