It'll be easier to take advantage of uptrend in the next few months: Fairlead Strategies' Stockton
BOX. OUR NEXT GUEST HAS GOTTEN MORE CONSTRUCTIVE ON THE MARKS AFTER THE S&P HAS CONFIRMED ITS BREAKOUT ABOVE 4,155 JOINING US IS KATIE STOCKTON, MANAGING PARTNER AND CNBC CONTRIBUTOR. I’VE BEEN WAITING FOR THIS, FOR YOU, BECAUSE I PUT A LOT OF STOCK AND FAITH IN WHAT YOU SAY, KATIE, BUT ONE OF MY CRITICISMS OF TECHNICAL ANALYSIS IS THAT BY DEFINITION, IT SEEMS TO BE KIND OF TREND FOLLOWING SO NOW BECAUSE THE MARKETS HAVE PROBABLY PERFORMED BETTER THAN THE CHARTS WERE INDICATED, IT’S SUDDENLY SELF-FULFILLING BECAUSE THE CHARTS HAVE GONE UP, THEY LOOK BETTER NOW AND MAYBE
ARE INDICATING FURTHER GAINS BUT YOU WEREN’T NECESSARILY, WHEN YOU COULD HAVE BOUGHT, THE MOST ATTRACTIVE TIME TO BUY WASN’T SHOWING. >> IT IS AN ATTRACTIVE TIME TO BUY. WE FOLLOWING MOMENTUM. WE WANT TO MAKE SURE WE’RE CAPTURING MAJOR SHIFTS THE DIFFERENCE IN THE RALLY HAS BEEN THE BREADTH THE WAITING, IT REQUIRES A LOT OF PATIENCE AT TIMES AND UNFORTUNATELY SOMETIMES THE BREAKOUTS DO COME FROM LEVELS AT WHICH YOU DON’T WANT TO WAIT FOR BUT WE ALWAYS LOOK FOR THAT CONFIRMATION BECAUSE GIVES US THAT SOME BREADTH WILL KICK IN ON FRIDAY THE BREADTHS SOMETHING LIKE 6-1
UP-TO-DOWN VALUE AND THAT MARKS A SHIFT IF WE SAW ANOTHER WEEK OR SO OF THAT, WE’RE GOING TO GET A PRETTY BIG
WAS AN OVERSOLD READING IN MARKET BREADTH, VERY RARE TO SEE THAT WITH A BREAKOUT IN PRICE TERMS BUT WE’LL TAKE IT. WE EXPECT RUSSELL 2000 S&P 500 EQUAL WEIGHT TO KICK IN. I HAVE TO BE CLEAR ON THE TIME HORIZONS BY THAT I MEAN IT’S THREE, FOUR MONTHS MAYBE AND I THINK THE RIT WOULD BE SOMEWHAT CONDUCIVE TO THAT TIME FRAME. BUT ON THE BACK OF THAT, WE MIGHT JUST BE IN THE BIG TRADING RANGE. >> THAT WOULDN’T GET US THAT HIGH >> THAT’S RIGHT. THE PRICE OBJECTIVE IS ABOUT 4510 FROM THE BREAKOUT IT DOES
SEEM REALISTIC IT ABOUT 5% OF LEVELS AFTER FRIDAY’S BIG GAIN. WE REALLY HAVE NO SIGNS OFUP SET AND CONTINUALLY ASK THE QUESTION L I REFERRED THE GENERALS AND THEN THE TROOPS. WE SAID COULD THE GENERALS COME BACK AND LEAVE THE FRONT LINES AND GO ORSAYING THAT MAY BE SHIFTING AND WE MAY SEE THE TROOPS START TO CATCH UP WITH — >> RIGHT >> BECAUSE NORMALLY THAT WOULD BE SUSPECT IF IT WAS TOO NEW >> THEY ARE SO RELATIVELY OVERSOLD YOU SEE IT ON THE SECTOR FRONT, ON THE SMALL VERSUS LARGE CAP FRONT AND I THINK
THERE’S GOING TO BE APPEAL TO THAT WHEN WE HAVE CONFIDENCE IN WITH THAT BREAKOUT, THAT INSTILLS CONFIDENCE. SO THAT’S WHAT WE’RE LOOKING FOR. WE THINK IT WILL BE EASIER TO TAKE ADVANTAGE OF THE UP TREND IN THE NEXT FEW MONTHS AND YET WE’D REMAIN NONCOMMITTAL EVEN AMONG THE MEGA CAPS WE DON’T HAVE A LOT OF THOSE INDICATIONS OF EXHAUSTION. WE. >> SO WE MAY NOT GO TO NEW HIGHS, BUT THE PROBABILITY OF US TESTING THE OCTOBER LOWS OR SOME AT 3,400 OR 3,200 OR MY MOST BEARISH CASE IS 3,000. WE’RE GETTING LESS AND LESS LIKELY
THAT THOSE EVER HAPPENED. >> FOR SURE. WITH ANY KIND OF BREAKOUT, IT HELPS YOU RATCHET THE SUPPORT LEVELS IGHER. >> WHERE ARE THEY NOW? >> NOW WITH THE FORMER RESISTANCE 4150 BOOKS THE SUPPORT. >> THAT’S 15% FROM THE OCTOBER LOW. >> IT IS, YEAH >> ALL THE PEOPLE WILL BE WRONG. >> I HOPE NOT. >> WHAT DO YOU MEAN YOU HOPE NOT? WE HOPE SO WE HOPE THEY ARE WRONG >> I JUST DON’T LIKE BEING WRONG SO I FEEL THE PAIN >> WOW, THAT’S INTERESTING BITCOIN KIND OF WAS EARLY AND THEN PETERED OUT, RIGHT? >>
IT HAD BROKEN UP FROM A BASING PHASE I THINK THAT WAS AN EARLY INDICATION OF THAT KIND OF RISK. >> NOW IT’S AN INDICATION THAT THIS COULD PETER OUT >> ANOTHER THING TO WATCH IS T
