Understanding Boats and Tides

Hey Traders,

Today we’re going to talk about some recent setups and a trade that we focused on in healthcare. Also, let’s take a deeper dive into the concept of boats and tide — understanding an individual stock’s place within a sector ETF. 

We want to know if there’s a better stock that could be traded within that group, whether or not that group might be a better trade to go with, or whether or not there’s an individual relative out performer.

So we’re gonna start out with something I call, the multi chart….

The Multi Chart is a twelve-chart layout that exists, not to do a lot of in-depth technical analysis, but to showcase the individual trend quality (trend structure) compared to the other heavily weighted stocks in a particular sector. 

The sectors that I like to separate out are the ETFs. 

So in this case, we’ve got the XLV healthcare ETF and then we have all the top eleven names within that XLV Healthcare ETF.

Now, when you look at that, the individual stocks that are relative outperformers are Johnson and Johnson, Abbott, and Lilly. They’re the ones that I call double green where the 8:13:21 and 34 exponential moving averages are indicating a bullish structure. In other words the probability, or the path of least resistance, is to the upside.

Take a look at this chart above and click on the image to hear me explain more about betting on the overall tide of a trade and this healthcare ETF itself…

Keep up with the volatility!

Sign up now to receive Raghee’s FREE Countdown Trader Newsletter. This is where Raghee walks you through timely trades and strategies. A great resource for all your trading needs.

We will never sell your information to any third parties.

Free Downloads

34 EMA Wave, GRaB Candles & Darvas 2.0 Indicator Downloads

Identify trends, sentiment, momentum and key price levels with Raghee's free indicators.

TradeStation | ThinkorSwim

Propulsion Dots Indicator Download

A dynamic indicator based on the comparison of 2 EMAs in the form of buy and sell dots.

TradeStation | ThinkorSwim