I Just wrapped up another Schwab TV appearance, and I had to break some hearts today.
Everyone's losing their minds over Netflix and this Warner Bros merger saga.
Here's what I told them - push the noise aside and look at what the chart's actually saying. Sometimes the obvious contrarian play sitting right in front of you is exactly the right move.
But that wasn't even the most interesting setup I walked through. I found what I'm calling a "stock with a nail in its foot" - completely range-bound at $300 while the market's been all over the place.
GE Aerospace. And I've got a theory about what happens when correlation finally kicks back in early next year.
Then there's Target. This thing hasn't had a red day since December 1st. Twelve straight days up. When I see moves like this, there's only one thing to do - fade the wild buying. The question is timing and duration.
Look, I'm telling you right now - this marketplace is going to remain volatile through the holiday weeks. Don't expect things to go quietly into the night. That's creating opportunities if you know where to look.
Want to see exactly how I'm positioning for the Netflix contrarian play, the GE correlation thesis, and the Target fade?
The complete Schwab segment breaks down my thinking on all three setups.
To your success,
Don Kaufman