Here are some top US trading/investment ideas I have discussed in last 12-18 months
1. Apple at $90 during last May 2016.
Why Apple stock can bounce from current levels...the stock is at solid support levels pic.twitter.com/8khPxXhRE6
— Deepak Singh (@smarket) May 3, 2016
This is where Apple stock stands today: CMP: $163. It's up 80%
Lesson: When a strong trending stock is standing right at the Ultimate support level, then one should Buy that dip.
2. Alibaba at $86 during December 2016.
Alibaba stock is at very attractive support levels:
1. 200 dma which it has held in the past
2. Gap Filled Support pic.twitter.com/ADBO2pUlJU
— Deepak Singh (@smarket) December 20, 2016
This is how much Alibaba stock has rallied in 2017. It's up 100%
Lesson: When a stock starts a bull run (like Gap-up) but gets interrupted by market correction, then one should not let that opportunity go when stock fills the gap.
3. Twitter at $14 in April 2017.
Is Twitter Value Buy?
The stock is at Ultimate support level pic.twitter.com/LCPjLz8w39
— Deepak Singh (@smarket) April 17, 2017
This is how much Twitter stock has rallied in 2017. It's up 21%
Lesson: It's never bad to bet on a stock when it's trading at a level where maximum pessimism is priced in.
4. Exxon Mobil at $80-81 in Feb 2017.
Exxon Mobil - Big loser in last 3 months. The stock is back to support levels..div yield 3.71% but still no takers.
— Deepak Singh (@smarket) February 22, 2017
Well, If a stock is in a sector that's out of favour, then stock does not get adequate support. Exxon Mobil broke down and now down 6%
Lesson: The Value does not hold in out of favor sector.
5. GE at Ultimate Support Level.
Well, GE broke down below that support even in a strong market.
Lesson: Strong Valuation metrics does not hold the stock. What holds the stock is perceived future
I hope the above case studies help you understand how Price Action helps one formulate interesting investment ideas. The logic of Price Action works everywhere be it Indian market or US market or any other market. Also, no matter how much you think through - some ideas will just not work. What matters: What you do when they work (Ride the Gains) and what you do when they don't work (Cut Losses)
Recommended: A text Book multibagger
Science of Stock Price Action
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Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers