My Investment and Trading Approach
As I mentioned last Friday, my investment and trading model is a disciplined, top-down approach. It ensures we only act when a fundamental, technical, and predictive edge align.
The "WHAT": Fundamental Strength
Before any chart is considered, I ensure a company is fundamentally sound. It requires a history of healthy revenue growth, consistent operating income, a durable competitive advantage, and financial ratios that justify a long-term bullish thesis. Those analyses are in the Fundamental Library mentioned.
The "WHEN": Technical Triggers
With a fundamentally strong company identified, I analyze its technical posture. We look for reliable patterns, whether it's a breakout to all-time highs or a bounce opportunity from an oversold condition. This provides the trigger for our action, grounded in the company's underlying strength.
The technical analysis requires a more frequent follow up than fundamentals, and the Weekly Compass is updated every week including 20+ securities constantly analyzed, providing a broad and also consistent universe of securities including U.S. Indices, the top 10 stocks in the $S&P 500(.SPX)$ , Metals, Bitcoin, $Cboe Volatility Index(VIX)$ , Bonds, and momentum stocks.
The "WHERE": Predictive Levels
Once the fundamental and technical pictures are clear, we apply our backtested model of support and resistance levels. This final layer validates the expected price action, framing the potential moves for the week and month ahead.
The confluence of these levels is a powerful tool we use to confirm breakouts and anticipate reversals across all asset classes, from individual stocks to indices, Bitcoin, and precious metals. The Support and Resistance levels are published every Friday for the week ahead, including a broader set of securities including leveraged ETFs, and more major stocks. For the latest publication, click here.
The “HOW”: Investment Instrument
Once a trading strategy is set, an investor must choose the right instrument to execute it. There are several common choices:
The Stock Itself: This is the most traditional method, involving direct ownership.
Options: These add leverage but also significant risk, as their value is affected by both price and time decay.
Leveraged & Inverse ETFs: These offer amplified (e.g., 2x or 3x) or inverse exposure to a stock or index without the same time decay as options. Examples include $GraniteShares 2x Long NVDA Daily ETF(NVDL)$ $SPDR S&P 500 ETF Trust(SPY)$ $S&P 500(.SPX)$ $ProShares UltraPro QQQ(TQQQ)$ $ProShares UltraPro Short QQQ(SQQQ)$.
Using any form of leverage demands rigorous risk management and a full awareness of the implied risks.
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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
