Transcription
So you guys have been asking me forever to go through charts, so I want to save all the cute slides and let's get right to it tonight about how to chart. So, but first, before we do that, homework time. Type "yes" in chat if you actually went over the last week and studied what happened in the last 47 recessions. Type "yes" if you did. No, if you didn't, if you did, type in chat what correlations did you find? Because now, in 2020, 2021, we are in a very similar time from the 1980s. To give you a heads up, so please go look and see what happened in that era so you can understand what to do now.
I know everybody was tripping about interest rates and you thought tech was going to fall to the floor, and then it shot up today. Just do not get tricked out of your spot because of interest rates being high. Interest rates have been high before and stocks have went up. It's not necessarily a bad thing. And homework item number three, please type in chat "YouTube" and "Zoom". What stocks have you bought this month? We are here to actually buy, not just sound like we know about the market, right? So type in chat what stocks have you bought.
So Troy, uh, called me like, "Man, you didn't any trainers on the chart in a while, so you should probably should get to it." So this is what I want to do. I want to walk you guys through how to actually read a chart, um, and I want to start off here. So I had an amazing call earlier with some of the members in Red Panda and Stock Club, and the brother came on. I won't tell you information, brother. Um, type, write this one down: NCI, NCI. Let me move this out the way. I'll come back to it. I'll come back to them and say that's not the right one. I'm gonna come back to it. But, um, the thing that I, uh, I want to to ask is like, if you are not willing to hold a stock for a generation, then how can you expect to have generational wealth? I think I'mma say that one for the end for those of you who are on, you know.
But, um, Lennar. So the first thing I want you to do, write this down. I always want you to go to the five-year month. I always want you to go to the five-year month because it tells you the true direction of that stock. So this is the company here. Type in chat, is the stock going up or is it going down? Because a lot of times when I'm looking online, I'm seeing people say, "Hey, I can't really tell if the stock is good or it's falling down for seven years straight, but I think it's going to bounce." This direction that you see here is a stock that is going up. But even if you're unsure, write this down. And I haven't talked about this too often. The second timeframe you can look at is 10 years. You hit "OK" and zoom out. You want your stocks to go up and to the right. So back here, 10 years ago, it was at 12.14 and it's been going up. This orange line is a 72 moving average, which I told you guys about before. So if we drop down to this price of 55.20, that's what you want to buy. Put "72 moving average" and "52.55.20" in chat, please.
Now let's look at Home Depot. Quiz time. You know I love my damn quizzes. What price, based on the 72 moving average, would you buy Home Depot at? The lesson that I want you to gather from this is, please write this down. You have to obey where you're going to get in. You have to obey where you're going to get in. You need one method. So whether you use a 200 price channel, which I've told you guys ad nauseam to use, please, 50-20 double crossover, a golden cross, a black cross, you have to obey your signals that you have. So guess what? The market right here is too high. So once we get to these highs, it is too high for us to buy. So let's go back down right to the five-year month. And we talked about that it's crazy, uh, almost a year ago. I think it was the fourth episode that we did. We talked about Fibonacci retracements. So if you do this, you put the high and literally go to low, you can see where the 50 level is on the chart. You don't have to guess. So 206.37 will be 50 off. Okay, the all-time high is 292. It's currently at 288.94. Is Home Depot a good buy right now? For those of you in real estate, if a house is worth 250, should you buy it at 247?
Here's the funny thing. Real estate is tied directly to Wall Street and vice versa. In 2007 and '08, they were chopping up all of these derivatives and selling them right to Wall Street, but they made every real estate investor feel like they did not know what they were talking about when it came to the market. It's the same damn thing. So at the 75 line, if it drops 25, there is some value there. We don't want to buy when it's two percent off of its highs because you have no edge there.
Let's look at Square. One of my babies. Square. Is Square up or down? Type "up" or "down" in chat. 168.42 is not a bad place to potentially buy. Square trading has considerable risk, so does investing. Please consult your advisor or actual shot when we go to questions. But 168.42 is not bad. If you've been following me for a while, um, Square is going up. So then if you look at this, let's go back and look at the same thing. Let's go look at 10 year. You can see the direction of the market has been up. It's been up. I got you, brother. Great. So then you can see you want to buy assets that have been going up consistently, not slowing down, right? There's a reason why Jay-Z decided to partner with Square when he launches his find his fintech company. Do not be surprised.
Let's go look at Visa. Is Visa up or down on this chart? Then our entry point will potentially be 139.30. Now, here's a cool thing. If you go to a weekly chart, you have another entry, 194.90. So if you use one instrument, you can go to different time frames and get different potential entries. I just don't call these prices out of thin air, right? So you go month, week, then day. Now let's look at the daily chart. If we go to the daily chart, we're under that moving average. So right now, you have a little bit of a deal and what you can get and take full advantage of that.
Let's go to JP Morgan. I did say Square's the new JP Morgan, but there's still some value left in banks. If you believe in value kind of stocks, they had a rough year last year, but they are back to the upside. And you can see right here, the entry price will be 99.53. We don't want to buy these highs up here. We do not want to buy up there. And then once again, so write this down, go month, week, then day for entries. So, okay, great. Now we see we hit a high of 161.69 and it's slowly gonna fall down. Then we want to wait right here to 119. And when it kisses 119, we want to get in. And the great part is, over time, if we give it two years, three years, five years, we definitely will clear 161.69 again.
And then I want to go to one of the safest stocks of all time. Here's the crazy part about Microsoft at this current moment. It only has one percent chance of causing distress in your portfolio. If you like safety stocks, type "yes" in chat, please. Microsoft, ever since the new CEO has come in, has been taking off to the upside. He's done a fantastic job, better than Balmer, right? So the direction is up on the five-year. Step two, go to the week chart. Type in chat what the entry would be. And even to know, under all this, guess what happens? People will get their entry and will not follow where they should get in. You'll have one bad day and people like, "Ah, I don't know if I should buy." And guess what? It slides down to this point and it bounces back up. And then two weeks later, you come on Mark on Mondays and say, "Listen, Rashad, I know Ian has said getting at 197.38, but my point, I missed it. It's at 245.13. There's no value to the upside. Should I buy it now?" Tell them, "Don't worry, you get, just wait another four years, it'll be hard and just wait."
Here's the thing, please write this down. It's very important and it's a great lesson the bottom one has shared with me. There is no such thing as emotion in trading. It's all math, medical calculations, that's it. Going back to my real estate developers and those in construction, if this house is worth 246, if I can get it to you on sale for 197, would you buy that property if it's in a good area? Most people in construction are going to say, "Yeah," because guess what? You can build the equity back into it. Here's a great lesson that investors can learn from real estate owners. The deal is made based on the price that you pay. You can be in a great stock and get in at the shittiest price, and it won't matter. It's going to take you almost double the time to reap the rewards of it.
Let's look at Teledoc real quick. Teledoc. Lo and behold, ain't that something? There it is. Everyone kept chasing. So this, once again, is a 72-period moving average. It's not the best indicator. It's not, you know, what we're using Red Panda, but it's a good secondary method of entry here. Please write this down. You have to obey one way to get in. You can't use RSI and Stochastic and MACD and histograms.
So Ian, let me just, let me just, um, jump in here real quick. Just for the novice that's watching out there. All right, this is because a lot of people was asking like, when should I get in? Was so looking at this stock right here, Teledoc, it's about to hit the moving average. It looks like this. Looks like this might be a good entry point in in a few days or a couple weeks. Is that safe to say? Yes, and you can set a pending order there. So first, I'm going to go look at the five-year month. The direction has been up. Great. We go to the week chart. We can see here it's been down. This will be the entry, 181.17. And if you're looking to hold for a year, six months, two years, you guys will be safe.
The biggest issue that I'm seeing across the board is like, you guys get great entries and you're looking to get in profit in two weeks and then you sell it. Like, I know people last year that sold Tesla in April. Um, I'm like, "Why?" "Well, I thought it was going." I'm like, "You think Elon, after all the stuff that he's been through, and literally Ford and Exxon trying to ruin his career, and he made it through that, you think the coronavirus is going to knock Tesla apart?" That's the same people. That's the same people that, um, had the cousin that worked at the Pentagon that was telling them that there was going to be tanks in the streets and get all the toilet paper because, remember that happens. Uh, hey, it happens. And then aliens will come and we'll, I mean, they'll be here, but they haven't walked over though. So until then, right? Be smart about where you want to get in because even with news, the purpose of news is to get ratings. During times like this, it was a ratings bonanza for most financial institutions and most financial programs. So you have to be very careful of that.
And I'll go over one last one. Let's look at PAC B. And I'll tell you the story. Same thing. Let's go five-year month. What is the direction? Is the direction predominantly up or down? Look at this. It was two dollars and two cents at the low in 2018. It's, it hit a high of 53. So we want to wait. See the direction is up. Now go to the week. I want to wait for it at 16. I don't want to buy up here and gamble. Definitely want to, don't want to buy the high. If we fall back down to 16.63, that is a place in which I can fire. That's it. You need one indicator on your screen. You need direction, and that's it. You're putting the boat signal out right there, huh? This would be an advantageous spot to probably put a few shares in because even from a math standpoint, like if we look at it, let's do this and look at the five-year month and we just do high to low and we do a calculation of where to get in. Please write this down. I know you guys been seeing me put my little Jay electronic esoteric tweets up, right? And post. You guys need to go study everything that you can about Fibonacci retracements and sequences. It will change your life for the better, and you'll have a more accurate, uh, representation of when to get in.
Hold on. Come on. Do I have crazy? You know what? What platform we're using here? This is, this is the train. This is Take a Swim, right? I think this one. Okay, yeah, that's TD Ameritrade. Yeah. So some people, yeah, think of Swim, y'all. So if you go high to low, it'll literally tell you when to get in. So look at this. It went to this high and slipped back down to 50 percent of its value right here at 28.16. It went a little bit under the 25 and it's back to the upside. For those of you that are in real estate, same thing. If the market is at a high, what if you can get a property that was a hundred thousand dollars at 25,000? This is that zone right here. So if it ever came back, came back down to 14.40, you can buy it, hold it for a year, and now you have all your equity on the upside. The biggest mistake I see everybody make is you guys are buying too damn high and hoping. Even in crypto, a lot of you would do a hell of a lot better and probably would eke out maybe two or three hundred more percent if you bought on the days when it slid down a hell of a lot higher.
So once again, to wrap up, step one, five-year month, then go to the week. Pick one signal to get in. The 72 is great. For those that are using price channel, your entries are even better. And I want to wrap up with this. A brother on a Stock Club call said his mom had got him into, um, got stocks for them around like three bucks in 1999. And I was like, "Damn, that's amazing." The stock is now 116. I won't say how many shares he has. And he was like, "Well, should I sell half to buy Apple?" I'm like, "Bro, your mom did great for you. Like, what a blessing." But it made me think, how many parents and how many of us are willing to sacrifice for our kids in the same fashion? And God wrestled our soul because he told me his mom had passed. But I'm like, what a gift she gave him to be in a quality company like that and continue to hold its value. So I see a lot of talk about taking profit in a year, and I'm like, but if we really want generational wealth, why the hell are we selling our stocks and positions in one or two years or three years? It makes no sense. We're thinking about us, but for thinking about our kids, we need to hold these because this should be the norm for us to hold, um, stocks for 20 and 30 years. So I just want to get a brother some love in in there. But I appreciate you guys, um, so much. The master advisor has had a chart, a chart moment. It's been a while since he had a chart. Yeah, it's always good to have those two. That long. There you have it, ladies and gentlemen. At some point, you got to be grateful. My graduates from my school, being Forbes, back drop, back drop, my drop [Applause] backdrop. Bye.