Reminder: Member's Only Webinar 7pm Tuesday, July 5 th

Size: px

Start display at page:

Download "Reminder: Member's Only Webinar 7pm Tuesday, July 5 th"

Marianna Elliott
5 years ago
Views:

Millionaire Blueprint July 4 th Special Edition Reminder: Member's Only Webinar 7pm Tuesday, July 5 th Reserve Your Seat Here Topics: John Hutchinson and Jamie Dlugosch review the market at large,

1 Millionaire Blueprint July 4 th Special Edition Reminder: Member's Only Webinar 7pm Tuesday, July 5 th Reserve Your Seat Here Topics: John Hutchinson and Jamie Dlugosch review the market at large, the July Stock Selection report and our plans for the month. Note: Jamie remains on vacation. Today's update provided by John. The Return of the Spinning Top Last week, I noted the combination of spinning top with hammer candlesticks and inside day candlesticks which provided the impetus for the stock selections in American Airlines, Alaska Airlines and Delta Airlines. Today, I'm going to depress the enthusiasm behind last week's rally from the Brexit lows. (I'm already tired of "brexit" how about you?) First, note the three long white candlesticks: that's a pattern called Three Tall Soldiers and typically it is a bullish formation.

2 That it occurs off the lows and returns us to the consistent resistance level in the S&P 500 gives me cause for concern; that the pattern was followed by a "shooting star" (inverted hammer) spinning top elevates my concern heading into the next week/new month. Here's why: first, as I pointed out in our special "brexit" update, the S&P continues to bounce down from the level. It's like Lucy with the football, which makes us Charlie Brown. Can you say, "Auuuuugggh?" This means Tuesday, July 5 is an important day because either we get a consolidation day (which would be the best outcome), a breakout day or a profit-taking day. As well, Friday, July 8 is June Jobs Report day. This is a danger based on what transpired in the May Jobs Report (dismal report). I'm concerned about a negative effect if we see a repeat in June, and I believe we will, but to what impact, I don't know. You can easily see resistance here. Any upside on the S&P is limited to about 18 points before we reach the highs for the year. After that, something significantly positive must happen for the S&P to breakout. Being honest, I don't see a significant positive taking place (Jobs, Manufacturing, GDP everything is flat to down). As well, we're about to hit earnings season and as we pointed out in last week's report, earnings are not expected to be very strong this quarter in many sectors (Tech, Financial, Manufacturing, Autos, Consumer). So the risk in the market is to the downside in July and August. Which means, while we would rather be able to be "long" in the market, prudence demands holding another hedge this month. The best hedge is still the SDS the ProShares UltraShort SP500 ETF.

The SDS chart just reached a bottom (obviously it would, right?). So, let's do some basic math: Closing Price on Friday: $17.73 1. Recent Support Level: $18.41 2. Upper Resistance Level: $19.

3 The SDS chart just reached a bottom (obviously it would, right?). So, let's do some basic math: Closing Price on Friday: $ Recent Support Level: $ Upper Resistance Level: $19.20 Profit Potential: 1. From current price to support level ($18.41), a potential gain of 3.8% 2. From current price to resistance level ($19.20), a potential gain of 8.3% Median Gain: 6.1% Any move down on the S&P results in potential short term gains on the SDS of between 4% and 8%. As a hedge against the downward pressure in the market, this is acceptable.

4 On the risk side, the S&P must breakout substantially above 2120, as the SDS is currently sitting on a two-year low and a triple-bottom. Chart bottoms tend to reverse (as do double tops) and the relief rally and short covering rally ran out of steam on Friday (as I note in the S&P chart). We will add this to our Airlines holdings next week on Wednesday, but I wanted to build the case for it first. We will still wait to enter the market until Wednesday, July 6 th with our July Stock Selections, however, so we can see what happens on Tuesday, but for now, keep this as a PLANNED bucket for July. This will give use 9 stocks and one hedge (SDS) for July. Open Positions Review: Our Airlines stocks did very well as a collective group, although both Delta and Alaska are lagging behind American Airlines. Movement in oil prices late week helped the recovery in all three stocks, but American gained the most benefit from that. Nevertheless, we have gains here and will look for favorable exit points in the near term (July). If you are a long-term investor, you should look at Delta and American as smart buys for your personal long term portfolio as the upward price potential is still greater than 50%. For Millionaire Blueprint's purposes, however, we will continue to look for short term gain opportunities. Stock Entry Current Gain/Loss AAL $26.94 $ % ALK $57.14 $ % DAL $35.40 $ %

5 Collectively, the three stocks represent a 1.6% portfolio gain for the time held so far. Not bad for a three day holding. I expect more to follow, however. A quick look at the charts and each company follows: American Airlines (AAL): Covered the gap as we had hoped and now sits at lower resistance point between $29.33 and $ If (really IF) we get above $30.50, this should run to $32-$33. This would represent a range of potential gains between 13% and 23% from our $26.94 entry. Earnings are later this month so expect to continue holding here through July. The two blue lines represent the next resistance points for American to break through. For now, $30.50 is my short term target. Do not be surprised if I recommend taking gains at that price/level, especially if we can remove earnings uncertainty from the equation.

Alaska Airlines (ALK): I really love this chart and the methodical channel being built. If it holds and the gap continues to fill, we should see Alaska breaking through $60 in the near term.

6 Alaska Airlines (ALK): I really love this chart and the methodical channel being built. If it holds and the gap continues to fill, we should see Alaska breaking through $60 in the near term. Although the candlesticks are small, the march higher includes higher lows and higher highs. That's a bullish channel for now (until it isn't). The range then becomes between $60 and $65 (previous support), which gives us a range of potential gains of 5% to 13%. That's too wide and it will take earnings to break through $62 (in my opinion). So, I'll likely aim for the "middle" and target an 8% gain, which gives us a target price of $ Once we get there we can evaluate again.

Delta Airlines (DAL): Like Alaska, Delta was a little slower to participate in the rally on Thursday and Friday, but still has a significant gap to cover on the chart.

7 Delta Airlines (DAL): Like Alaska, Delta was a little slower to participate in the rally on Thursday and Friday, but still has a significant gap to cover on the chart. All in all, despite missing out on that.73 move from Tuesday into Wednesday when we entered this trade, we're still ahead and looking up at two critical points: Lower Resistance: $38.00 Upper Resistance: $41.07 Gap to Cover: $36.77 to $38. This move represents an additional gain of 3.3%. Upper Resistance Target: $ This would represent a Total Gain of 16%. The Middle: $39. This would represent a total gain of 10%. This is my short term target.

8 July Stock Selections Reminder that you will get your July Stock Selection report on Tuesday, July 5 th by 5pm Eastern Time. We'll review the charts for the stock selections on the Member's Webinar Tuesday night, as well, so I'll see you there, right? Right. You should plan to buy the 6 Stocks and 1 Inverse ETF to be recommended on Wednesday, July 6 th. That's all I have for you today. Have a safe and happy 4 th of July holiday. All the best, John Hutchinson Editor, Millionaire Blueprint

Millionaire Blueprint Stock Selection Report July 2016 Monthly

Millionaire Blueprint Stock Selection July 2016: Monthly Stock Selections In case you missed it: The financial press would have you believe the world was about to collapse. Then (as somewhat predicted)