Up and Away for Mid-Caps?

Published on
July 12th, 2018
4 minutes

Up and Away for Mid-Caps?

Technical Trader ·
Featuring Dave Floyd

Published on: July 12th, 2018 • Duration: 4 minutes

Technical analyst Dave Floyd, founder and president of Aspen Trading Group, is bullish on mid-sized U.S. stocks. Citing a strong technical setup, Dave makes the case for an ETF that is already trading near all-time highs. Filmed on July 10, 2018.


  • DF
    Dave F. | Contributor
    24 August 2018 @ 13:41
    Finally seeing IJH kick into gear here. The move back above $201 should give the bulls some momentum. Unrealized gains of +2.5% thus far.
  • DF
    Dave F. | Contributor
    24 August 2018 @ 13:39
    IJH finally kicking into gear here. The move back above $201 should give it room to run. Unrealized gains of about +2.5% as of now.
  • AP
    Aaron P.
    19 July 2018 @ 22:17
    Thanks for the confirmation bias! I feel mid is the best cap out there right now from a different technical perspective and from the idea that they maybe are more sheltered from tariffs and interest(borrowing) costs.
  • RM
    Russell M.
    18 July 2018 @ 06:19
    Nice and concise.
  • RK
    Robert K.
    13 July 2018 @ 23:39
    Buying at a high - you have ballz of steel. Respect. Will follow how this evolves, good luck.
    • DF
      Dave F. | Contributor
      15 July 2018 @ 02:08
      Ha.....it took balls of steel today on my ripping mountain bike descent on Tyler's Traverse - https://www.youtube.com/watch?v=6nzGLB5HQ38 But regarding IJH.....I get it, but it is a reasonable set-up across the board IMO
  • RF
    Richard F.
    12 July 2018 @ 10:29
    Ahh, so the secrets to trading lie in some mystical series of impulses and corrective waves that no one can quite explain and when coupled with an overlay of ratios for price retracements and extensions based upon a unique series of numbers discovered by an Italian mathematician in the middle ages, have the key to riches. One thing we can probably be fairly sure of is that trading the Aspen Trading Group way you will never buy a house in Aspen.
    • RL
      Rui L.
      12 July 2018 @ 12:19
      "How much more grievous are the consequences of anger than the causes of it." Marcus Aurelius
    • DF
      Dave F. | Contributor
      12 July 2018 @ 13:31
      GM Richard....it is impossible to satisfy everyone in these days, I get it. There are hucksters everywhere and lots of noise. I do however put forth ideas and techniques that have worked for me over the years. Thankfully there is a long catalog of my videos/forecasts here at RV that support my approach, it just takes some time to go back and review/verify that. Have a great day.
    • RM
      Richard M.
      12 July 2018 @ 14:44
      Dave Floyd, please don't let negative comments here dissuade you from continuing posting very interesting videos. I am definitely a TA guy but have never cottoned to EW (it just didn't resonate with me - too subjective for my taste; but that doesn't mean other people can't find useful dimensions to it so more power to you!). Fib's are just one minor indicator I do look at and if other TA signals align with it (like RSI/Stochs and/or MACD) I will give the signal even more credence. I really like your TA segments so I look forward to future ones. Thanks!
    • DF
      Dave F. | Contributor
      12 July 2018 @ 14:53
      Richard M....not dissuaded at all....disagreements come with the territory, and I welcome constructive feedback and criticism. That is how we all learn. Life is too short to argue in soundbites....RV was founded to invite objectivity, transparency and thoughtful discussion/debate. Soundbite analysis/critique can be found in plenty of other venues nowadays.
    • SH
      Steve H.
      12 July 2018 @ 18:00
      Richard, personally I'm not clever enough to use EW as a trigger - I have to rely on old-school stuff like order flow, price action, etc. But I do look at EW as a potential source of info to help shape my bias. Like many other things in life, trading is about digging up evidence, ideally from non-correlated sources, and seeing if the pieces fit together in a compelling manner. Whether Mr. Floyd is right or wrong on this call (and, for what it's worth, I think there's a good chance he's correct), he has looked for evidence and argued his case on the basis of what he sees. Re signor Fibonacci and his bunny counting - sure, I take your point. On the other hand, if you prefer 'fundamentals' do you really believe everything you read in a set of GAAP accounts, let alone all the 'adjusted this that and the other' fantasies that Wall Street purveys? Again, just as when using different technical analysis techniques, you simply have to dig around in the data deluge and piece together the clues. And, of course, there is no infallible 'secret' to trading. I don't think any of the contributors to RV, who on the whole are pretty bright people, would ever be daft enough to claim there is. And if I'm wrong about that and there really is a secret, don't expect it to be shared on RV - or in any other public domain.
    • CM
      Carlos M.
      12 July 2018 @ 18:44
      I guess Richard F before calling hocus pocus you should check AAOI (David F's last call )
    • RM
      Russell M.
      12 July 2018 @ 23:31
      I think of waves & ratios as like 2 steps forward, 1 step back. Or 3 steps forward, 2 steps back. I don’t the mathmatician line helps the argument. Its pyschology & seeking a sign.
    • JP
      Janusz P.
      13 July 2018 @ 08:27
      While I have my own approach and I know nothing about EW, my only comment relates to Dave saying "quantitative". Perhaps it is all semantics, but correct me if I'm wrong, it was not a "quantitative" reason, it was still another "technical", no?
    • DF
      Dave F. | Contributor
      13 July 2018 @ 14:16
      Greg O.....there was quantitative data discussed....."Midcaps made a fresh 1-year high for the first time in 3 months." That scenario has produced higher levels of 12.5% on average one year out. It has played out like that 21 of the last 22 times this occurred.
    • DF
      Dave F. | Contributor
      13 July 2018 @ 14:17
      Greg O - I had stated at the start of the video that there were TWO reasons for the trade - Technical and Quantitative
  • DR
    David R.
    12 July 2018 @ 20:47
    Although EW emphasizes trading each market individually on its own merit, I imagine that your coming US stock gains correlate with a big dollar collapse that we see ahead. After its 13-month, 5-wave impulse collapse from 104 to 88 on DXY, the dollar has completed (or nearly completed) a 5-month corrective recovery in 3 waves, setting up for a huge 3rd wave impulse lower for the dollar even more vicious than its aforementioned decline, possibly taking the DXY into the 60's by next year. Like the year ended January 2018, but worse, we expect the next and bigger dollar collapse will likely more than wipe out nominal gains in US stocks, especially after tax. One can only guess at the "catalyst" FWIW, but some with connections already suggest that after the NATO and Putin meetings, Trump will begin a tweet storm against the Fed to intimidate them into lower US interest rates and get a lower US dollar. In our opinion, this is likely to crash both the US bond market and the US dollar, like in January but orders of magnitude worse as one may imagine with such an open, unprecedented direct interference from the executive branch... Brace!!