To The Moon

Summary: @猫姐美股投资

• catstocktrading(@Youtube )and Maojietrading (@Twitter) talks about legendary investor of Buffett

• US interest rate hike will be suspended in June? Any Strategy?

• Why The Goddless line of SPX around 4100~4156 points means alot.

• The most successful trade--bought the dip of SOXL in June

Media photos in 2011

Warren Buffett's Berkshire Hathaway shareholder meeting has just ended. Tiger Community got a chance to have an interview with KOL Miss Cat on Youtube, who is located in Silicon Valley, immersed in technical analysis, has 12 years of experience in US stock trading, and built an exclusive indicator of "buying strength" for trading.

Below are some Q&A that Miss Cat shared about her thoughts on Warren Buffett investing Philosophy, the current market, and her most successful trade in recent period.

Q1: Speaking of legendary investor Warren Buffett, you have had two time meet up with Buffett before, and just came back from the 2013 shareholder meetings. What's your personal impression of Buffett and his value investment philosophy, what insights do you have to share with Tigers?

A: "Yes, I met Warren Buffett twice, and has kept attending shareholder meetings since 2013. The first time i met him was in 2011 on the trading floor of the New York Stock Exchange. At that time, on an internal meeting where many people and Mr. Buffett participated. I did ask him a question about what is the most important thing in investing. I remember that Mr. Buffett said the word "patience" first, and then made a joke, then all the people were laughing and I just follow them.

I was very young at the time, and I didn’t dare to ask further even I didn't understand what the joke behind him was. So this is a pity in retrospect. But Mr. Buffett was very nice, hugged at me like an old acquaintance, the photographer of the media took a group photo for us.

Now, after more than ten years, the "patience" that Mr. Buffett said is extremely important for me in trading. A good trader is like a sniper, he must patiently wait for the right opportunity to attack, instead of wasting energy and bullets in useless transactions.

In the 2023 Buffett Annual Meeting, I have gained a lot as usual. Buffett's team focuses on long-term and fundamentals. For example, Charlie Munger emphasized that ‘if you can't bear a company's stock price cut in half, don't invest in the company's stock.’ That is a completely different concept from swing trading and short-term operations. My stock selection strategy and ideas have greatly learned their ideas, and combined good stocks with swing trading.

At last, I hope that Buffett and Charlie Munger will be more and more healthy. In fact, if you read history books, you will find that many final winners are not short-term sprint experts, but live longer than their competitors in good health. "

Q2: In your recent Youtube video, you mentioned that it is very important for $S&P 500(.SPX)$ to successfully stand at 4100 and breakthrough 4156. But in the current market, investors seem still weighing some macro risks such as inflation, the US debt crisis, and so on. How do you analyze future trends?

A: "That's right, I have been bullish on U.S. stocks since October 2022. I found one of the important bases is $S&P 500(.SPX)$ 4100 points ~ 4159.62 (I call it the Goddess Line)points. This point line it is the position of the center of gravity calculated by me based on the data of the market for more than years, including the accumulation of buy orders and sell orders. Breaking through these two points and gaining a firm foothold will bring great support to the market of in 2024 to 2025.

As we can see in the chart above, the $S&P 500(.SPX)$ lost to stand on the Goddess Line of 4159.62 in May 2022, then fail to successfully stand on line in August-September 2022. It has caused a great psychological shadow on Long parties and almost triggered a large number of sell orders.

Until in February, March, and April, especially May in 2023, seems the Long-party became more active in approaching the Goddess Line and didn't see sell orders triggering but see long-party actively retreated to release the short pressure to gain momentum. After repeated running-in and gaining momentum, it finally broke through in May.

$S&P 500(.SPX)$ broke through 4100 perfectly upwards and is currently waiting to break through the goddess line 4159.62 points.

I think that in the current market, callbacks are basically worth buying dips, rather than being scared away.

The interest rate was just raised by 25bps in early May. Based on the CPI data in April, I think the market consensus is that the interest rate hike will be suspended in June. However, the point of view of whether to raise interest rates is not the most important. What is important is to draw a strategic conclusion based on market trends and data analysis: once the interest rate hike is suspended in June, it will be the basis for the start of a new round of market.

Assuming that the results of the interest rate meeting in June changed, our conclusions will also change accordingly. Even if the interest rate continues to be raised by 25bp in June, it is within the range that the market can bear. The short position is at the end of its strength and it is difficult to raise its head. "

Q3: For some recent trading experience, any successful cases you want to share with Tigers?

A: " Just for a reference, I would like to share my recent case of bottom-buying and $Semiconductor Bull 3X Shares(SOXL)$ , which the ETF I did track for a long time. However, the trade has both successes and regrets.

In February 2023, the US stock market started to pull back, and $Semiconductor Bull 3X Shares(SOXL)$ also pulled back from $18, I was waiting for this time to buy, and I also reminded my subscribed friends to "buy" but not "run away".

See the below chart, I bought it at the price of $12.5895, and the lowest point of this round of $Semiconductor Bull 3X Shares(SOXL)$ was $12.52. I made my decision on seeing the systematical signal and bought it immediately through my phone. I was happy that the entry price was almost the lowest price that can be obtained by manual operation.

Please see my screenshot below for the transaction sheet and the 5-minute chart of $Semiconductor Bull 3X Shares(SOXL)$ .

To be honest that I don't usually like to post trading charts, sharing with Tigers is an exception here. As it will put pressure on myself, and affect the judgment of the next transaction. Usually, my operations in the club are basically synchronous.

But I would like to share some sincere review experiences to the Tigers:

First, give yourself enough time to observe the underlying trend and wait patiently for opportunities. SOXL is actually not my specialty. Alex, the class monitor of our club and also my senior, prefers this target earlier many years. Inspired by him, I started to pay attention to it and tried to analyze the weekly and daily charts since 2015, after tracking it for a few months, I finally figured out its temperament and character: the lowest price at the end of 2022 was less than $10, then it rose later. I didn't buy it yet, still waiting, the callback began in February 2023, and I felt the opportunity come and seized it.

Second, don't get entangled in every trade, review and learn lessons, but you must let go. In fact, although this is copied to almost the lowest point, it was still not perfect, as I was planned the day before to trade at least 100,000 shares, but when the market opened the next day, the trading system issued a buy signal of TSLA, a target I am familiar with which had been repeatedly trade since 2019, so my attention was quickly diverted there, finally, I just stepped in and opened the first two positions.

Because I was too involved in tesla options trading, I forgot to place the orders for the middle trend of SOXL， when looking back, the price of SOXL has risen already, losing the price advantage. This is a typical example of not being executed well. The purpose of a specified trading plan is to execute it. If the execution is not in place, no matter how good the plan is, no matter how good the vision is, it became empty bubbles.

At last,I want to recommend a book to tigers who like technical analysis: "Technical Analysis of Stock Trends", which is a book supreme guiding light in my heart, and authored by Robert D. Edwards, Magee. Its first edition came out in 1948, it is the originator book of technical analysis of US stock trading.

When I read this book for the first time, I burst into tears. The usage of some graphics in it is no longer applicable due to the times, but the way of thinking is the foundation of the technical analysis of US stocks. It is worth reading repeatedly. "

That's all my sharing this time to Tigers, welcome to my youtube channel to communicate at any time.

My Youtube channel address: https://www.youtube.com/@catstocktrading/videos