Stocks on Sale: Buy Low, Sell High! 9-10-2019


Stocks on Sale: Buy Low, Sell High! 9-10-2019 — with David Moadel three trading day waiting rule know it
follow it it’s important this is David Modell looking at the markets we’re
gonna look at some bargains or maybe not such bargains I’m gonna help you to
separate what’s really cheap and what’s not okay and before I get started if you
need some more help with this if you’d like some coaching so you can put
together a trading or investing plan I do coach people on that you can email me
at David Modell at gmail.com for that alright let’s take a look what’s getting
hit today well take a look right now at PayPal py PL and these charts are from
trend spider calm and I want to give them credit and I’ll put a link in the
description below this video in case you want to get a transpiler for yourself
okay so take a look hopefully you can see
this big big candle from yesterday on PayPal big red candle and the three day
rule says that you should probably wait three days after a big red candle before
you even consider taking a long position doesn’t mean you take a long position
after three trading days just means you don’t even consider it you don’t even
think about it you you give it another look after three trading days and
trading days do not include Saturday Sunday and holidays so you have a big
red candle in PayPal followed by well what’s happening today
another red candle not as big as yesterday’s but that’s typical when you
get a big red candle a lot of the time not always but a lot of the time the
next day you get another red candle not as big and then sometimes the day after
that you get another red candle not quite as big and so the bleeding starts
to slow down but you know why jump when it’s falling so fast you don’t want
to catch a falling knife because you might cut yourself as they say now Pay
Pal is at or a little bit below the lower Bollinger Band that could signal
that yeah you might want to consider it inexpensive or cheap right now but I’m
not gonna step in just yet on the RSI standard settings 14
excuse me 14 period RSI it’s not even in the over sold territory meaning below 30
yet but if you do want to buy low and sell high payment stocks like PayPal are
you know they’re cheap right now but the momentum is so harsh that you know I
recommend waiting three trading days for sure before we even look at it let’s
look at a couple of comparable similar sector stocks again three day rule I
hope you followed it I’ve been pounding the table on that rule for a long time
so yeah you have a this is MasterCard MA you have a red candle and then today
another red candle about the same size as yesterday a little bit smaller so
yeah you got to be careful with that stuff and it’s not even at the lower
Bollinger Band and it’s not in oversold on RSI just yet so I’m not touching it
yet yet another reason to stay away from it until it goes down more possibly and
starts to calm down hopefully the red candles will be a little bit smaller as
the week progresses or into next week visa it’s gonna be a very similar
scenario here yeah yep yep big red candle and then today another big red
candle so three day rule I’m telling you folks this is so important I’m gonna
keep those on my radar though notice that hopefully you can see it’s kind of
small the the way that the today’s candle the wick lower wick bounced right
off of the bottom Bollinger Band maybe a coincidence I don’t know but that’s kind
of noteworthy kind of interesting all right so let’s take a look at some other
possible bargains Starbucks just vomiting below that Lowell lower
Bollinger Band today down four point three one percent as I’m
recording this video almost at the lower bowl yeah it’s below the lower Bollinger
Band and almost down to the 30 level oversold on the RSI I’m definitely
exercising the three trading day weighting rule after a candle a red
candle of this magnitude doesn’t even have a lower wick on this thing it’s
just been that means it’s just been going down and staying down so you know
I’m staying out of the way but I do like Starbucks at lower prices it’s just gone
up so much my goodness this was a fifty dollar stock what a year ago so I mean
come on there’s gonna be it’s gonna cough up
some of that and it’s doing it right now so you know I like the idea of staying
the heck out of the way but I like the lower prices let’s take a look at
Alibaba is down a couple of percentage points today nowhere near being cheap
though so I don’t like it right now but and this is according to the RSI and
the Bollinger Bands and just look in just using your common sense I mean it’s
not even close to 150 where it was not that long ago it’s been to the 150 level
a couple times when it gets down there I’m definitely gonna look at that for
Alibaba I know there’s a trade war going on and that’s no fun for China and the
United States so any you know any unfavorable news on the trade war front
could easily push this down to 150 so I’m not buying right now
now Roku streaming a big company underappreciated I think yeah three
trading day waiting roll big red candle followed by another red candle today but
at least it’s getting more reasonable I do want to see this thing around a
hundred and if you think that’s impossible it’s been there before it
wasn’t that long ago so this I mean the name of this is buy low sell high I do
want to take a look at Ford I’m liking Ford right about now I know
it’s a safety stock it’s not the most exciting thing in the world I do want
Ford to be around nine before I actually start to accumulate share
ford under 9 is generally a good thing it has always recovered from 9 it sure
8:50 would be even better if you have that kind of patience it might not get
there but it certainly could now why is ford down today ford is down
considerably especially for a safety stock it’s down
nearly three percent today this is Yahoo Finance I’m looking at right now I mean
it’s it’s calming down but it really took a hit today why is the company any
worse today than it was yesterday no it just went down because of a
Moody’s downgrades somebody from Moody’s gave it a you know a negative opinion on
it today I say so what I see these things as buying opportunities just
because one person or one you know a banking you know analyst says oh I don’t
like this stock people are dumping it because of one analysts opinion the
company is no different today than it was yesterday it’s not a worse company
today it’s just one person’s opinion is worse
so that means nothing to me and honestly I like these opportunities I like it
when a stock goes down only because one analyst decide decided he didn’t like it
so is it where I want it to be yet no I want to be nine or lower 850 is even
better it might not get there if it starts to you know go down if it goes
down to let’s say nine and then starts to and that’s a place yeah that’s a
psychological level for a lot of people I think a lot of a lot of people a lot
of institutions might buy at nine especially if it doesn’t go below it so
if it goes down to nine and then goes sideways and starts to curl up if you
get that little fishhook at nine that could be a pretty good time to consider
accumulating on the other hand if it breaks strongly with a big red candle
below nine then you might want to look out below and just just wait just apply
the three trading day waiting rule at that time
it depends on how it behaves at that level if it gets to 9 which it certainly
could alright so how could you play for it for example with options free options
traders out there if you have permission to sell cash covered puts I mean look
how much and you can go out 45 days that’s what a lot of people do they like
to go out 45 days whenever they sell options and right now this is the Schwab
platform here and with Ford options let’s say you sell a 9 strike put option
ok I know that’s not out that’s out of the money that’s not at the money but
what’s the worst that could happen if you sold a 9 strike put option 45 days
out which is what a lot of people recommend when selling options 45 days
out or at least between 30 and 60 days well the worst that could happen is if
Ford goes and stays below $9 a share you’ll end up buying a hundred shares at
$9 a share you’ll end up buying $900 worth of Ford stock at 9 which is a
pretty good price and check it out yeah right look how much more expensive the
put options are compared to just yesterday
yesterday these put options were 23 cents or $23 per contract now there are
$33 that’s a big gain okay so this is the type of this is the time when you do
something like this when you sell a cash covered put option you do it on a day
like this when everybody is freaking out and when people are panicking then
people want protection they’re willing to pay a high premium for put options
and so this is the type of day when you sell something like this instead of just
putting a limit order to buy $900 worth of Ford stock if it goes down to 9 why
not just sell a put option that way you’ll get paid money to buy possibly
that’s a great way to go so you know just something to think about people ask
me when do I maybe sell an option on a day like this when there’s panic
the air okay other than that I don’t see a whole lot of bargains out there all
right i that that’s just the honest truth of it like for example Facebook
yeah it’s it’s just it’s not where I want it to be it’s down today that
doesn’t mean it’s down enough Amazon I’m not even looking at that right now
Chipotle Chipotle down five five point six two percent it’s stopping just about
at that lower Bollinger Band RSI says it’s not oversold yet and again three
day waiting rules so I’m not buying this yet I’m not buying a whole lot out there
to be honest with you Shopify down six percent three-day
waiting rule again had a medium-sized red candle a couple days ago big red
candle yesterday hope you didn’t jump in because a sizable red candle today
oversold on the Bollinger Bands on the standard
settings not on the RSI yet in any way a three day rule so not buying a whole lot
here Ford is the only thing I might look at with selling a cache covered put
option other than that I’m pretty much staying out so you know sorry I didn’t
give you a lot of buys today but I’m not here to try to get you to buy things you
don’t have to buy every single day you don’t have to do something every single
day you can just chill out relax eat some popcorn and watch the show and it
is a freak show let me tell you out there alright so if you want some more
help with all these things you can contact me for coaching at David Modell
at gmail.com I hope you liked this video if you do then please give it a thumbs
up right now and subscribe to my You Tube channel and hit that notification
bell if you haven’t done that already and you know let’s hang out and wait for
great great prices on great companies three-day rule folks three days okay
I’ll talk to you again soon

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