Real Life Trading Spring Portfolio 2018: Third Edition
Can you believe it?! We're already in June! What an incredible and monumental 2018 it's been already.
I just got back from Houston, TX where I was able to spend some quality time with traders who live in that area. We had great discussions, and I learned more about the energy sector as it's truly ripe over there in Houston.
Here is a picture of the Houston Meet up.
Also in the month of May, I completed the Burpee Challenge as part of Health and Wellness Month. Over a dozen traders finished the massive physical hurdle and we were able to knock out 2,480 burpees in just ONE month. That was such an accomplishment. One I'm really proud of as I stuck to it every single day for the Month.
Consistency in your life leads to discipline. And discipline will lead to profitable trading.
Speaking of profitable trading, you might be pleased to learn exactly how profitable this portfolio was over just the last 3 months. Prepare to be astounded and enjoy reading this write up!
1. Baozun Inc. - Ticker: BZUN Analysis on June 2nd, 2018
Just sheer gangbusters. That's probably the best way to describe this stock and it's recent movements.
What I am very proud about is the proper timing of these stocks and companies. Was it sheer luck, or hours of research that led myself and the RLT team to create a FREE portfolio write up and newsletter containing Chinese stocks, along with the mass distribution of the recent IPO's on these companies as well like BILI, IQand now SOGO.
Bottom line, the gains have been life changing between the Spring Portfolio and the BILI & IQ write ups and I really hope you took part in them, especially since you got the information totally for free…
Alright, onto the stock, enough bragging. :-)
Everything changed on BZUN when it had earnings. As mentioned in the last article, it continued trading perfectly in it's channel until the earnings release.
In the above chart, you'll see how the obvious gaps impacted the trend and movement on the chart. The earnings gap was what really caused this ball to keep rolling. However, we can see the obvious bullish trend, the gorgeous retest and when the gap and go did come in, it was simply a powerful continuation of the trend and momentum that was already there.
Remember, finding the trend is often the most crucial part of timing a trade. With a gap and go, we have to be a little more aggressive, right? Hence the 'go' part of the name. These things are supposed to move very fast.
So, when you see that gap on the daily chart occurring on 5/17, you know it's bullish. It's unquestionable, especially with the close above the resistance of the channel. From there, you probably think, 'Jerremy says play the retest of breakouts' and that's how you would have gotten this set up.
And even from there, you could have zoomed into the hourly chart to get an idea of where the pull back would occur. That would look like this.
Here's my analysis on it in the afternoon swing trading room. This one set up, this one trade, should have / could have paid for multiple years in the RLT room. ;-)
From here, I truly don't think BZUN is done. I do have a target of which BZUN will likely pause. But here is my analysis from back on 4/10.
Therefore, look for something like this on BZUN.It could be smaller than this but I doubt it will be much bigger. This is a solid bullish trend, so go have fun on this one traders.
BZUN price from the first edition: UP $15.89 (34.63%)
2. Tencent Holdings Inc. - Ticker: TCEHY Analysis on June 2nd, 2018
Tencent is still chopping sideways right now. The analysis on this one will be short and sweet. I included this giant in this portfolio so that you would be privy to how large this company is now and likely how large it will be 4-5 years from now. Tencent owns just about every company in China. HAHA. Feel free to go back to the first edition to see all irons that are inside the Tencent fire.
TCEHY is sitting it a nice distribution phase for now. It will likely continue this pace for a few more months at the minimum. However, traders still had a couple of nice opportunities to pick up a few shares recently.
Also, you might have been surprised that dividends hit your account on your TCEHY shares a few weeks back. I mean, I was surprised. Being that this is an OTC stock, I didn't even check to see if it paid dividends and I knew it didn't have options. So, that was a fun extra few bucks that those who owned received.
Anyway, I do expect TCEHY to continue higher, slowly over time. This will be an exceptional stock and company to be an 'owner of' rather than just a trader. AND - you might want to ask your kids about this company too. There's a large chance they also know about it and my recommendation would be to have them begin to invest long term as Tencent is the owner of many popular video games that the majority of children are playing right now. Anyway, just a thought. Let's this 500 Billion Dollar puppy keep slowly creeping higher.
TCEHY price from the first edition: Down $.98 (1.83%)
3. Yum China - Ticker: YUMC Analysis on June 2nd, 2018
Onto our other dog of the portfolio. Note, I like to keep the losers small and contained. Last time we outlined all kinds of plans on this one. Here they are again.
Neither plan 1, 2, 3 has triggered yet (mind you buy .18 ~ holla at your boy) nor did plan 5, but plan 4 did trigger.
Also, you could have easily made adjustments to Plan 4 as you received new candles and new data. I did my best to outline that thought process on this chart. And that update would have made the risk:reward MUCH better!
And now you could increase the stop again, under the most recent pivot, to actually lock in a small gain, which is certainly better than losing.
It appears this gap will continue to fill, especially if YUMC closes above $39.93. From here, I would consider cancelling most of the bearish plans OR making them more conservative, something like this.
Since the market is sooo bullish right now, I'll be personally waiting a bit longer on a bearish play.
YUMC price from the first edition: Down $2.16 (5.2%)
4. MOMO Inc. - Ticker: MOMO Analysis on June 2nd, 2018
I mean, WOW! Check out this killer chart analysis on MOMO from our last write up. The whole thing was just so good and I'm really happy for those that got to play this pattern breakout, featured in the last write up.
Trend was (is bullish) right, which means it makes the most sense and hopefully 'cents', to continue in that direction.
The breakout most certainly occurred on May 7th, the opening Monday after the 2nd portfolio hit the internet shelves.
From there, MOMO had about a one week long retest of the double bottom neckline.
But what happened most recently was thrilling. Here were the earnings of MOMO. "By the numbers, investors drove MOMO up by more than 15% after the company crushed analysts sales and profit estimates for Q1 and topped off the results by offering an upbeat outlook with above-views revenue growth of 51% to 55% for Q2.'
YEP! A bullish gap and go. A STRONG one too, gapping above an intense resistance, into a 50%+ short float causing a ridiculous short squeeze, one I do not expect to slow down anytime soon.
This is how we played it in the Real Life Day Trading Room this past Tuesday for a day trade. Anyway, as of now it seems very obvious the direction of this trend. BULLISH.
So, how do we play it from here? I can see a few approaches.
Keep your eyes on MOMO my friends. This was an amazing gap, solid volume and beautiful move. I'm excited to make some bill paying money on this one.
MOMO price from the first edition: UP $12.22 (32.69%)
5. APPLE Inc. - Ticker: AAPL Analysis on June 2nd, 2018
Oh AAPL, what will you do now? Friends, you all know I've been promoting and pushing AAPL for years now. And it's lead you to the promised land of profits. And I'm not even close to quitting.
From the last write up, here is what I wanted AAPL to do.Well, that's not exactly what happened. And I was bummed. Which lead me to hitting the charts to try and find a new pattern. This is what I came up with.
Turns out, SPOT ON! The big question from here is really, 'will AAPL follow this pattern exactly and retest' OR will she just totally run? That's the conundrum I faced this Friday. Here's the recording.
I would simply say, be prepared for either. AAPL had a nice bullish gap and go on Friday with a very pretty candle. It's also breaking out of a pennant pattern. AAPL was .11 away from makinga new all time high on Friday. My plan has been for a while to sell a covered call again once AAPL does make it's new all time high. Side note, the May $190 expired perfectly.
My true guess, AAPL crushes from here and hits the TRILLION DOLLAR mark as a company. All the 'noobs' out there finally hop onto AAPL bullish and then we get an actual retest down to $178 max.
At least, that's my thoughts. This beast is the biggest most profitable company in the world. Don't bet against it traders.
AAPL price from the first edition: UP $22.46 (13.38%)
Average total return of Spring Portfolio from March to June 14.73%!
That's going to wrap it up for me my friends! I hope you found this information enriching, beneficial and profitable. I mean, we totally crushed these stocks! All 5 of them offered some really exciting trade opportunities and potential. The best new, it's certainly not over. There are plenty of more trades coming your way. To see me analyze and trade these LIVE, make sure to register for the upcoming FREE OPEN HOUSE starting June 18th. Anyone and everyone is allowed and encouraged to join, register and trade with us. Get your questions answered, join the community and family of financially inspiring and motivating people and let's go enrich lives together!
Just recall ALL of the information I've given you 100% for free over the last 6 months!! Then consider what financial rewards are in store for those who actually trade with me every day… It's going to be serendipitously splendid! I'll see you there!
~ Jerremy Alexander Newsome
CEO of Real Life Trading and fan of Milk Chocolate