Xylem is a US counter which one of our students traded.
Just an example of the very persistent trends we can find on the US markets.
Those who don’t follow the trend and think it has gone too high, are really paying the price!
A quote from John Maynard Keynes goes something like this: “The markets can stay irrational, longer than you can stay solvent.”
In case you’re wondering, he’s the reason we study Keynesian economics at school.
So with that in mind, we’re looking for more opportunities in the market for continuation of the uptrend.
There’s also a juicy setup on our local market which looks good, but I have my reservations, take a look below.
If you’d like to learn how to select your counters to capture trends,
We’re testing the upper areas of the current range.
No confirmed change of trend, but observe the US markets as we are closely following them right now.
Stronger than the broad market index as it makes new highs today.
Triggers an entry from 28.83
As a hedge of our portfolio, we are looking for shorts on this counter.
There is good potential downside to the 1.71 1.64 and 1.53 levels.
The setup here looks good for a short.
However, we can see historically that YZJ is a more volatile counter.
It tends to whip us out of the sustained trends during retracements.
So we would pass on this setup unless you’re ready to handle the volatility.
This stock has seen a magnificent trend higher since almost a year ago.
Xylem a huge American water technology provider.
The trend started under $50 and now it’s up just under $80!
The trend has been amazing, with our valid signals coming in just about the $50 mark.
As you all know by now, we can’t catch the tops and bottoms, but we’ll be sure to catch the meat in the middle.
You can read more about them on their site here.
If you’d like to learn how to clear distinctions in your trading setups,
Good trading Folks!