Today s Presentation. 1) Detecting Institutional Activity in Stocks. 2) Finding Institutional Imbalances. 3) Selected Stocks Through LSI Charts

Transcription

1 Good Morning!

2 Today s Presentation 1) Detecting Institutional Activity in Stocks 2) Finding Institutional Imbalances 3) Selected Stocks Through LSI Charts

3 Bud Leedom Created LSI Process San Diego Stock Report Senior Analyst, Wells Fargo Securities Leedom Asset Management Supply and Demand Investing 2016

4 Selecting Stocks Stock Investing It s A Tough World For Small Investors!

5 Selecting Stocks Researching Stocks: Daunting Task for Individual Investors! Job or Distractions Limited Access to Wall Street Research Trading Disadvantages Due to HFT, etc.. Our Own Biases and Predispositions And: So Many Stocks to Analyze!

6 Information Overload!!

7 Selecting Stocks How Do We Find Ideas? Fundamental Research? Jim Cramer? Growth Stocks? Particular Industries? Local Stocks?

8 Today s E.F. Hutton?

9 Selecting Stocks Can We Leverage Institutional Knowledge?

10 Selecting Stocks Institutions Have the Power to Move Stocks! Access to Billions of Dollars Consumer of Majority of Analyst Research They Know Things The Ultimate Discoverer of Undiscovered Stocks

11 Selecting Stocks How Do We Find Institutional Activity? Quarterly 13-F Filings Barron s Roundtable, etc.. A-D Rankings of Investors Business Daily? Block Trading Stock Charting???

12 Selecting Stocks A Brief Word on Stock Charting Yes, the Institutions are Visible, But How? Charts steer Investors to Pay at Price Highs The chart trend is Great! Until it Isn t Similar to Predicting a Game by Only Watching the Scoreboard

13 Apple:

14 Apple: The Past Year

15 LSI Charts Finding Institutional Investors 1) Applying the Principle of Supply and Demand 2) Spot Imbalances of Supply and Demand 3) Indentify Specific Imbalance Patterns 4) Use These Patterns to Select Stocks

16 Glaukos: The Past Year

17 4/28/ , /23/ , /16/ , LSI Charts Glaukos: Price & Volume Data (Yahoo Finance) Date Close Volume +/- Date Close Volume +/- Date Close Volume +/- 4/6/ , /29/ , /24/ , /7/ , /2/ , /25/ , /8/ , /3/ , /26/ , /11/ , /4/ ,200, /27/ , /12/ , /5/ , /31/ , /13/ , /6/ , /1/ , /14/ , /9/ , /2/ , /15/ , /10/ , /3/ , /18/ , /11/ , /6/ , /19/ , /12/ , /7/ , /20/ , /13/ , /8/ , /21/ , /16/ , /9/ , /22/ , /17/ , /10/ , /25/ , /18/ , /13/ , /26/ , /19/ , /14/ , /27/ , /20/ , /15/ ,

18 LSI Charts Key Data Points & LSI Multiples Average Volume Price Price LSI Spike Key Trades Volume Multiplier Change Multiplier Multiplier 6 6/15/2016 $ , , /6/2016 $ , , /4/2016 $ ,200, , /2/2016 $ , , /22/2016 $ , , /18/2016 $ , , Background Trades 4/13/ , , /12/ , , /11/ , , /8/ , , /7/ , , /6/ , ,

19 LSI Charts Glaukos (GKOS) $29.08 H L $ $60 $50 4 $40 $30 $ $10 $0 - One Year Chart -

20 Glaukos: The Past Year

21 LSI Charts Glaukos (GKOS) $29.08 H L $70 $60 $50 $40 $30 $20 $10 $0 - One Year Chart -

22 First Solar: The Past Year

23 6/9/ ,440, /15/ ,692, /22/ ,369, LSI Charts First Solar: Price & Volume Data (Yahoo Finance) Date Close Volume +/- Date Close Volume +/- Date Close Volume +/- 6/1/ ,573, /9/ ,489, /14/ ,801, /31/ ,644, /6/ ,787, /13/ ,624, /27/ ,059, /5/ ,098, /12/ ,488, /26/ ,553, /4/ ,700, /11/ ,363, /25/ ,026, /3/ ,035, /8/ ,147, /24/ ,525, /2/ ,505, /7/ ,425, /23/ ,278, /29/ ,341, /6/ ,187, /20/ ,967, /28/ ,931, /5/ ,834, /19/ ,056, /27/ ,947, /4/ ,578, /18/ ,765, /26/ ,369, /1/ ,794, /17/ ,772, /25/ ,476, /31/ ,392, /16/ ,612, /22/ ,475, /30/ ,268, /13/ ,982, /21/ ,481, /29/ ,260, /12/ ,457, /20/ ,900, /28/ ,335, /11/ ,901, /19/ ,280, /24/ ,512, /10/ ,578, /18/ ,208, /23/ ,925,

24 LSI Charts Key Data Points & LSI Multiples Average Volume Price Price LSI Spike Key Trades Volume Multiplier Change Multiplier Multiplier 6 5/19/2016 $ ,056,100 2,000, /3/2016 $ ,035,200 2,000, /29/2016 $ ,341,500 2,000, /28/2016 $ ,931,400 2,000, /6/2016 $ ,187,900 2,000, /5/2016 $ ,834,700 2,000, Background Trades 4/22/2016 $ ,475,600 2,000, /21/2016 $ ,481,600 2,000, /20/2016 $ ,900,800 2,000, /19/2016 $ ,280,600 2,000, /18/2016 $ ,208,900 2,000, /15/2016 $ ,692,900 2,000,

25 LSI Charts First Solar (FSLR) $38.47 H L $93 $ $53 8 $33 $13 9 -$7

26 LSI Charts Positive & Negative LSI Patterns

27 LSI Charts Institutional Buying Patterns Conservative Stocks

28 LSI Charts Harman Intl. (HAR) $ H 112 L 42 $182 $162 $142 $122 $102 $82 $62 $42 $22 - One Year Chart -

29 LSI Charts Apple (AAPL) $32.06 H L $63 $53 $43 $33 $23 $13 $3 - One Year Chart -

30 LSI Charts Institutional Buying Patterns Growth Stocks

31 LSI Charts $200 Priceline (PCLN) $ H 118 L 7 $150 $100 $50 $0 - Five Year Chart -

32 LSI Charts Taro Pharm. (TARO) $96.97 H L 7.87 $187 $137 $87 $37 -$13 - Five Year Chart -

33 LSI Charts Institutional Buying Patterns Small Cap/Speculative

34 LSI Charts Monster Beverage (MNST) $2.28 H 2.28 L 0.2 $11 $9 $7 $5 $3 $1 -$1 - Five Year Chart -

35 LSI Charts Deckers (DECK) $16.01 H L 0.88 $55 $45 $35 $25 $15 $5 -$5 - Five Year Chart -

36 LSI Charts Increase the Effectiveness of Our Investing Use Institutional Imbalances To: 1) Find Stocks 2) Improve Timing of Trades 3) Increase Effectiveness of Investment Strategies

37 LSI Charts Selected LSI Chart Stock Review Let s Have A Little Fun!

38 Nike (NKE) $55.33 H L $74 $69 $64 $59 $54 $49 $44 - One Year Chart - Next Up: Starbucks (SBUX)

39 Starbucks (SBUX) $54.35 H L 53.5 $65 $60 $55 $50 $45 $40 $35 $30 - One Year Chart - Next Up: Gold (GLD)

40 Gold ETF (GLD) $ H L $182 $162 $142 $122 $102 $82 - One Year Chart - Next Up: Disney (DIS)

41 Disney (DIS) $92.42 H L $122 $112 $102 $92 $82 $72 $62 $52 $42 - One Year Chart - Next Up: Coca Cola (KO)

42 Coca Cola (KO) $42.27 H L $50 $45 $40 $35 $30 $25 - One Year Chart - Next Up: Facebook (FB)

43 FaceBook (FB) $ H L $124 $104 $84 $64 $44 $24 $4 - Five Year Chart - Next Up: Netflix (NFLX)

44 Netflix (NFLX) $96.50 H L $128 $108 $88 $68 $48 $28 $8 - One Year Chart - Next Up: Wells Fargo (WFC)

45 Wells Fargo (WFC) $48.72 H L $57 $52 $47 $42 $37 $32 - One Year Chart - Next Up: Chipotle (CMG)

46 Chipotle (CMG) $ H 757. L $780 $680 $580 $480 $380 $280 $180 $80 -$20 - One Year Chart - Next Up: Apple (AAPL)

47 Apple (AAPL) $ H 120. L $124 $114 $104 $94 $84 $74 $64 $54 - One Year Chart - Next Up: Valeant Pharmaceutical (VRX)

48 Valeant Pharm. (VRX) $28.06 H L $200 $100 $0 -$100 -$200 -$300 -$400 -$500 - One Year Chart -

49 Spotting Imbalances Timely Stocks

50 Gold ETF (GLD) $ H L $180 $160 $140 $120 $100 $80 - Five Year Chart -

51 GoPro (GPRO) $12.85 H L 8.62 $40 $35 $30 $25 $20 $15 $10 $5 - One Year Chart -

52 Chesapeake Energy (CHK) $7.62 H 9.55 L 1.5 $19 $14 $9 $4 -$1 - One Year Chart -

53 Targa Resources (TRGP) $46.52 H L 14.7 $60 $50 $40 $30 $20 $10 $0 - One Year Chart -

54 SodaStream (SODA) $25.76 H 30.7 L $98 $78 $58 $38 $18 -$2 - One Year Chart -

55 Wix.com (WIX) $42.18 H L $57 $52 $47 $42 $37 $32 $27 $22 $17 $12 - One Year Chart -

56 Yelp (YELP) $37.39 H L $77 $67 $57 $47 $37 $27 $17 $7 - One Year Chart -

57 Trupanion (TRUP) $16.07 H L 5.21 $27 $22 $17 $12 $7 $2 - Two Year Chart -

58

59 LSI Charts Don t Invest Without Them!