During the March lows, the Robinhooders started buying household names that were down in the dumps in an attempt to make a quick buck and a longer term investment. As of May, the five most popular stocks Robinhooders owned were Ford, General Electric, Walt Disney, American Airlines and Delta Air Lines. As of today, these five stocks are up 40% vs. the S&P 500 which is up 20% since March.
The Robinhooders got this call right and just won another battle against the Money Managers as they held onto their Tesla stocks. Now with the S&P 500 enlisting Tesla later this month, Money Managers are now scrambling to get in.
MY TRADING METHODOLOGY IN A NUTSHELL BELOW
I’m a supply and demand trader. The premise of supply and demand trading is when the market makes a sharp move up or down the large institutions i.e banks/hedge funds are not able to get their entire trade placed into the market, leaving pending orders to buy or sell at the zone with the expectation the market will return to the zone and the rest of their trading position will be filled.
I use multiple time frame (MTF) analysis to improve my discretionary trading decisions. MTF analysis involves analyzing the same asset on multiple time frames. The rule of thumb when using MFT is you want your charts to scale down/up by 4X – 6X. In my case I tend to look at:
Monthly Charts (curve time frame) – which represents that jet fighter flying over the football stadium.
Weekly Charts (trend time frame) – which represents the concession stands looking down at the field.
Daily Charts (entry time frame) – which represents being on the football field with the player.
4 Hr Charts (entry time frame) – which represents the center hiking the ball to the quarterback.