Markets Evaporate for Trend Investors
The available opportunities for trend investors evaporated virtually overnight when global markets plummeted from their 10-year equity high.
The abrupt decline adversely affects the investment strategy that I specifically designed to capture consistent market trends, and therefore the available short-term opportunities have severely reduced as we witness the first phase of a bear market.
Despite it being virtually impossible to gauge when markets are expected to develop a sustainable recovery, there are subtle indications based on the historical structure that help market participants identify opportunities ahead of time.
At present, I'm monitoring two companies a week in advance which consists of the Clorox Co and Kroger Co.
Clorox Co [ NYSE: CLX ]
In recent years Clorox Co has been range-bound between $145.00 and $166.00 dating back to 2018, this severely decreased the number of available opportunities; however, this year it's performed incredibly well, generating three positions and providing a combined 4.5% return on investment.
The coronavirus pandemic initiated a panic which catapulted the stock price, and as a result, the relevant indicators to validate the investment criteria have now aligned.
Kroger Co [ NYSE: KR ]
The Kroger Co has generated two positions this year, providing a sub-par 0.5% return on investment; however, it's important we employ consistency, and therefore if price-action closes below $31.20 before the end of this week a pending order will be implemented at the beginning of next week.
The current unpredictable market conditions make it incredibly difficult to forecast; however, I'll continue to update the blog to ensure market participants have the optimal edge in such uncertain times.
The abrupt decline adversely affects the investment strategy that I specifically designed to capture consistent market trends, and therefore the available short-term opportunities have severely reduced as we witness the first phase of a bear market.
Despite it being virtually impossible to gauge when markets are expected to develop a sustainable recovery, there are subtle indications based on the historical structure that help market participants identify opportunities ahead of time.
At present, I'm monitoring two companies a week in advance which consists of the Clorox Co and Kroger Co.
Clorox Co [ NYSE: CLX ]
In recent years Clorox Co has been range-bound between $145.00 and $166.00 dating back to 2018, this severely decreased the number of available opportunities; however, this year it's performed incredibly well, generating three positions and providing a combined 4.5% return on investment.
The coronavirus pandemic initiated a panic which catapulted the stock price, and as a result, the relevant indicators to validate the investment criteria have now aligned.
Kroger Co [ NYSE: KR ]
The Kroger Co has generated two positions this year, providing a sub-par 0.5% return on investment; however, it's important we employ consistency, and therefore if price-action closes below $31.20 before the end of this week a pending order will be implemented at the beginning of next week.
The current unpredictable market conditions make it incredibly difficult to forecast; however, I'll continue to update the blog to ensure market participants have the optimal edge in such uncertain times.
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