The trade has been perfect. In this weekend’s video, I show the
charts of the bottoming formations at the 1986, 1992, 2000 and 2008
lows. In each instance spikes up occurred after final lows (+30%,
+30%, +51% and +15%). Thus far we have advanced 22%. The 1986 and
2000 markets are the closest fit bear markets to ours. Each advanced
30% during these short-lived but violent rallies which would project to
129.00.
It is important to note that once these flurries to the upside were complete, sharp but very short-lived sell-offs occurred. In 1986 and 2000, both markets retraced 56%. If we were to replicate this pattern, our market will give back half of whatever the ultimate gain is. This will be another excellent buying zone.
Reward-risk multiples? I start this video by showing
how the bull markets unfolded once final lows were in place and what
the implications of this are on profitable investment and speculative
positions. Click on image for video.
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Tuesday, February 2, 2016
Monday, February 1, 2016
XEL: Xcel Energy Inc.
Company Profile: Xcel Energy Inc. is a public
utility holding company. The Company's operations include the activity
of four wholly owned utility subsidiaries that serve electric and
natural gas customers in eight states.
Fundamentals:Trailing P/E: 19.97
Forward P/E: 3.57
EPS: $1.91
PEG: 3.57
Beta: 0.10
Annual Dividend: $1.28
Dividend Yield: 3.35%
Additional Fundamental data: http://www.theglobeandmail.com/globe-investor/markets/stocks/summary/?q=XEL-N
Technicals:
Recently broke out of a 12-month consolidation
New 52-week high
New all-time high
Buying pressure (RSI) is overbought
Buying volume is expanding
Support is at $37
Xcel has been outperforming the S&P 500 since mid-2015
The safety stop is at $36.50
The target is $44
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