The ACD Method

Yeah, well I'm in agreement there as well lol. I've been dumping the majority of my stocks over the past couple days across all my accounts. I'm taking the majority of the risk off in equities as I am just having a hard time justifying the market going much higher (for fundamental reasons at least).
 
My numberlines are still very strong -- particularly for basic materials and phama stocks.

Even the coal etf and high-yield etfs are strong right now. My gut wants me to get flat too, but I am just trying to sit tight until these numberlines change.
 
Shorting China here FXI, ASHR as hedges vs longs in US index. Yuan is weakening and vol is getting bid. Very choppy mkt. Good luck out there.
 
Current list of large stocks with strong numberlines, from my proprietary scoring model:

Strong stocks.jpg
 
koolaid said:
Any of them you like or currently holding steve?
More...

No, just because I haven't really combed through the list closely. I have a list of smaller cap stocks as well. :)

For intraday ACD setups, TROX has been a steady money maker since February (maybe one or two losing rolling 20 day periods). Probably just gave it the kiss of death there.

If you believe this move in oil is real, some of the midstream stocks could be an interesting way to play the move...a $1 advance in WTI is worth $50M+ a year in earnings for some of these guys (and they only have a $500M market caps). Midstream stocks with strong numberlines + strong WTI numberline may workout well.

On an unrelated sidenote, AAPL dropped -8% afterhours on earnings that failed to impress. I'm really starting to think the Nasdaq may struggle going forward...Twitter got clobbered afterhours, Google got crushed yesterday, and if this quarter is anything like last, then LNKD/NFLX/TSLA are all going to be in for some pain as well...these stocks all trade at massive valuations to boot.

The key question in my mind not is if the NDX is going to drop 20%, but when it does whether everything else will get dragged down with it ala 2008, or if money is going to rotate out of the NDX into assets that have been left for dead for the last 4 years (ag, materials, shipping, EM, etc).

Not sure what the outcome will be but I think it is worth watching Nasdaq numberline strength vs "left for dead" stocks numberlines very closely.
 
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