Picture of Power: Price Momentum Map Syntax
0000 ^^^ Map Syntax ^^^
In Map Syntax land, we care about
VIOLENT price action and optimizing it. Thats it. Simple Simon
09/26 (Long Bias) ACIU
09/21 (Long Bias) TTD
09/19 (Long Bias) SRPT
Price action goes into Map Syntax, answers come out. Listen to your MAPS.
When you master your craft (trading system) and can execute flawlessly - There is a price you pay - Work (trading) becomes boring.
However, the financial rewards become astronomical, just ask Tiger Woods or Roger Federer. ....And when you ask them how
they MASTERED THEIR 'CRAFT', they will tell you, it isnt the mechanics or system of their game that takes them to the top, but rather,
the six inches of space between their ears that they have learned to manage and master. Trading is no different. ~
0000 TSLA 2013 - Case Study - 'Model Analysis'
In my opinion, trading momentum is for the investor that wants to get paid right now. It is nothing more then participating in a trend.
However, momentum investing is 'NOT' a good 'risk/reward' trade. In fact it is risky because you are betting on other investors to keep
buying in the face of higher prices by chasing prices. We are trying to profit from investors' fear of 'MISSING THE MOVE'.
However, you can manage this risk well. How? Because you can always sell (if your wrong).
Acacia's 35% first-day pop is 2nd best of 2016 TWLO (+92%) knocked it from 1st to 2nd.
Acacia Communications (ACIA) priced at $23, the high end of the range, and popped 35% on Friday. The first venture-backed tech
IPO of 2016 came to market well below its optical peers despite Acacia's much faster growth and superior margins. The company
will have to maneuver past a recent trade restriction on its top customer, but thanks to an industry-wide data center upgrade, the
demand for its high-speed optical networking products may be great enough for them to reach the end customers. Acacia's
success suggests that IPO investors are still interested in growth stocks - an encouraging sign for the high-growth tech names in the
backlog. (Source: Renaissance Capital LLC; an SEC-registered investment adviser)
MARKET STRUCTURE // noun //: The collection of factors that determine how buyers and sellers interact in a market.
Financial Markets: the cyclical flow of money based on the REPEATING behavior & operations of participants.
BABA (Alibaba) - Proxy for ONLINE CONSUMPTION growth in China and the Chinese Consumer.
ACIA (Acacia Communications) - Equipment mfr for the buildout of the cloud (Customers: Data centers, Telecom Companies).
TWLO (Twilio) - Communication Services for the cloud & cloud companies. PLATFORM that allows developers to build, scale & oper communications.
YRD (Yirendai Ltd) - Credit Services for the Chinese Consumer.
FANG //acronym//: FaceBook, Amazon, Netflix, Google - four of the most popular and best-performing tech stocks during 2013-2015.
BATY //acronym//: Created by MapSyntax isolating 4 tech companies that have metrics for outsized stock market returns in the months ahead.
CLOUD PLATFORMS are a
category of software that enable developers to build and manage applications without the complexity of
creating and maintaining the underlying infrastructure. These platforms have arisen to enable a fast pace of innovation across a range
of categories, such as computing and storage. Twilio is the leader in the Cloud COMMUNICATIONS Platform category. Enabling
developers to build, scale and operate real-time COMMUNICATIONS within software applications.
COMMUNICATIONS is at the earliest stages of a secular shift from hardware to software.
Twilio's mission? to fuel the FUTURE of COMMUNICATIONS.
Twilio offers communications services like texting, voice and video calls for developers to BUILD INTO their apps.
Twilio believes the future of communications will be written in software, by the developers of the world.
Twilio's goal is to be in the TOOL-KIT of every software developer in the world. As of March 31, 2016, Twilio had over
26,000 Active Customer Accounts. Including high profile companies such as Uber, Opentable, Hubspot and Zendesk.
Revenue Model: 'As our customers succeed, we share in their success through our usage-based revenue model. Our revenue
grows as customers increase their usage of a product, extend their usage of a product to new applications or adopt a new
product. We believe the most useful indicator of the increased activity from our existing customers is our Dollar-Based Net Expansion Rate,
which was 155% for the year ended December 31, 2015.'
Source: Twilio S-1
0005 4008:1 Cycle MoMo [MACRO Cycle Analysis]
The term TAILWINDS describes some condition or situation that will help move growth higher. For example, falling gas prices will help
a delivery company be more profitable. Lower gas prices is said to be a tailwind for the freight services industry. HEADWINDS are just
the opposite. Its a situation what will make growth more difficult. For example, if the price of beef goes much higher, McDonald's is facing
NOTE: Cycle MoMo is NOT to be used in deciding if you should or should not trade a particular stock.
The chart of the stock you are considering taking risk with (micro) should be your guide. Cycle MoMo (macro) simply tells
us if there are TAILWINDS or HEADWINDS when taking risk with a momentum stock. For me, Cycle MoMo comes at the END
of my decision process to take risk, NOT the beginning. In Map Syntax land, MICRO always takes precedence over MACRO.
0008: CIRCLES OF STIMULUS - Market Timing & Price Optimization.
Two times a day, Wall street delivers THRUST, BUST or STALL.
Use those KEY DECISION TIMES to identify and time THRUST as well as pick an ideal time to book gains or cut losses.
[NOTE: This is not day trading.]
MONEY MGMT = Position Size, Timing the Entry, Cutting Losses & Booking Gains
- One of the traders most important tools is Money Mgmt
- The worlds best traders recognize it as their most important key to success - NOT THE TRADING SYSTEM