Making Friends With the Trend

Published on
December 3rd, 2018
Topic
Technical Analysis, Trading
Duration
8 minutes
Asset class
Equities

Making Friends With the Trend

Trade Ideas ·
Featuring Douglas Busch

Published on: December 3rd, 2018 • Duration: 8 minutes • Asset Class: Equities • Topic: Technical Analysis, Trading

Douglas Busch, CMT, founder of Chartsmarter.com, takes a technical dive into the charts and reviews which sector should continue to outperform. In this interview with Justine Underhill, he suggests specific stocks within the sector, highlights key levels to watch out for and explains how to play the overall trend. Filmed on November 29, 2018.

Comments

  • RR
    Ryan R.
    6 December 2018 @ 03:30
    I appreciate the guest providing an actionable insight (something that also puts some skin in the game by making a recommendation)... although it’s hard for me to envision the upside with the macro environment: all time highs plus pending liquidity crunch. Thank you.
    • DB
      Douglas B. | Contributor
      23 February 2019 @ 11:50
      Thank you Ryan. The march continues higher!
  • JO
    Johnny O.
    4 December 2018 @ 09:19
    I am fundamentally bearish overall, but on the basis of (continuing) sector relative strength, the Healthcare recommendation makes total sense if you are going to be long anything. Tech and Financials had great runs but are ailing. Some interesting comments below from the fundamentalists. I used to care about individual stock fundamentals once too. Do I think I'm going to learn anything by reading the financials and the published research that is new or unique or not already priced in? Will any of that mean anything or reassure me when the technicals and the stock prices start going south? Yes, you need to have an overall view on the market and maybe sometimes on some over-/under-valued sectors, and very rarely you might know something about an individual company worth acting on (like when someone once showed me one of the first iphones). I personally think all stocks are more or less over-valued but on the question of whether something is likely to be one of the risers or fallers, what matters is what the herd is doing which can be discerned technically. I also think some shallow bs fundamental analysis, combined as it always must be with the second level crystal ball reading that opines how the market will respond to said information, is exactly what we get on charlatan CNBC. It's about as meaningful as a Bloomberg news ticker, where some news event can be used to explain EUR going up one day as easily as it explains EUR going down another day. Technical analysis is objective by comparison.
    • AP
      A P.
      4 December 2018 @ 09:56
      Fundamentals are as much part of the process as sector analysis and technicals. Peter Brandt knows about business/credit cycles, demographics and monetary policy, while our macro Raoul - and also macro Druckenmiller in his interview - always start with charts and are also interested in technicals. Arguing/opposing technicals, fundamentals and tactics as to which one is 'better' is like saying that a steering wheel is more important than a car engine, or that walls in a house are more important than roofs.
  • CZ
    Cyprian Z.
    4 December 2018 @ 02:57
    Did I just watch CNBC? Typical charlatan-style punting you see there every day. Since when does RV promote technicals-only with no consideration to fundamentals whatsoever? Do you really want your retail subscribers to believe this magic?
    • EF
      Eric F.
      4 December 2018 @ 03:03
      Not for you? Simple, don’t watch it. No need to be a hater bro.
  • RK
    Robert K.
    3 December 2018 @ 21:57
    Insane. Buying stocks at their highs in a mature market after they already doubled. WTF.
    • EF
      Eric F.
      4 December 2018 @ 03:04
      Feel that strongly, short them then bro.
  • AP
    A P.
    3 December 2018 @ 16:04
    First time on RV having the feeling to be literally "sold" a stock ala Charlie Sheen in the movie Wall Street. Gecko wasn't convinced at first.
  • SS
    Steve S.
    3 December 2018 @ 10:04
    Personally, I cannot just make a trade purely based on the technicals. First I look at the fundamentals and then use the technicals to confirm my thoughts and is good for deciding on good entry/exit points. I will take a close look at the fundamentals of the stocks mentioned in this video as they were not on my radar. Thanks.