The Traders Journal

Over 150 Fresh Tradeable Insights: The Tensile Trading ChartPack Update 6.0

Gatis Roze

Gatis Roze

Author, Tensile Trading: The 10 Essential Stages of Stock Market Mastery

For both existing ChartPack users as well as investors who have not yet downloaded the ChartPack – or perhaps don’t fully understand the many benefits of how to maximize its use – I’m pleased that a free video and user manual is now available for your review.  Grab a cup of coffee, put your feet up, and check it out!

Free Video & User Manual:
Recorded at ChartCon 2014, my 60-minute presentation steps through the powerful organizational structure and each of the 90-plus ChartLists that comprise the ChartPack.  All users will benefit from the many organizational ideas.

As a full-time trader, I have been using this ChartPack personally for over a decade.   About five years ago, I began sharing my ChartPack with my Bellevue College class investors.  In November, 2013, I started offering the ChartPack and quarterly updates to my friends, users who now number into four figures.  

From the feedback I’ve heard over the past two years, the four most common benefits for investors are as follows:

1.    For both new investors and experienced ones as well, the organization provided by the ChartPack is a significant kickstarter and remember that all ChartLists can be personalized. 

2.    The ChartPack saves an incredible amount of time since most of the 90 ChartLists are pre-populated and preformatted with the appropriate charts (saving you hundreds of hours of work).

3.    Quarterly review and commentary on investable ideas based on what Wall Street’s big ‘gorilla’, Fidelity, is actually trading generates great tradeable ideas.

4.    Reviewing the specific equities that Fidelity is buying and selling every three months provides a virtual PhD in trading skills.  The specific techniques and campaigns that Fidelity is executing are there for you to witness and absorb.

Here’s an example.  ChartList GR-420-28.  Fidelity Construction / Housing Fund.
This ChartList is populated with sixteen equities, including FSHOX (The Fidelity Construction/Housing Mutual Fund) and fifteen other equities.

a.    Those stocks that this Fidelity Fund added to its Top 10 holdings this past quarter are labeled with four stars.  For example, American Campus REIT ****.

b.    The stocks that this fund sold and are no longer a Top 10 holding are labeled with two “XX”s.  For example, Jacobs Engineering XX.

c.    Other stocks in the ChartList are core holdings (for example, Lennar) or added in recent previous quarters (for example, Eagle Materials ***).  The three stars tell you that it was added in the third quarter of last year.

This Quarter’s Updates:
Here I review the specific additions, improvements and updates that I’ve made to the ChartPack.

Fundamentalists Rejoice:
There is a big push going on at to attract fundamental investors to visual analysis.  Personally, I believe the most compelling way to achieve that objective is to plot their beloved earnings and dividends on their stock price charts, and that is exactly the direction that is moving.

In ChartList GR-10.9, you’ll find my thirteen recommended pre-formatted chart analysis styles.  On ChartStyle “G – Volume & Money Flow”,  I added dividends, showing both the amount and timing for Johnson & Johnson (JNJ).  On ChartStyle “K – Mutual Funds”,  I added distributions, showing the regular payout schedules that are meant to remind investors NOT to buy just prior to an expected distribution date.  Both of these are achieved by using the ‘Events’ pulldown menu in the overlays section.  Please check this out.  It’s most definitely a money-maker feature.

Myth Buster:
I’m often shocked that sophisticated investors assume most ETF baskets do not change their equity compositions.  Wrong!  For example, of the nine S&P Sector Spyders, I’ve updated the top holdings in 60% of these ETFs.  ChartLists 401 through 409 reflect the most recent equity positions.  Remember that by closely tracking major individual stocks in each ETF, you are in essence endowed with X-ray vision as to what’s going on with that specific ETF.

Note Asset Growth in Key ETFs:
Big money is flowing into bond ETFs.  ChartList 105 contains the largest ETFs (by assets) and just received eleven new additions.  Six of these were bond-related, such as TLT, IEF, BIV, VCIT, LQD and MUB.  Staying on top of institutional money flow and the most popular ETFs pays dividends (sorry for the pun).

Knowing What Fidelity Thinks Will Be the Next Big Thing:
Fidelity’s 40 sector funds made over 150 buys and sells in their Top 10 holdings this past quarter ending December 31, 2014.  The tradeable insights and ideas generated from understanding the thinking and actions of Wall Street’s big gorilla will definitely improve your own investing skills set and help you make more money.  

Remember that each quarter I do the heavy lifting and make it easy for you!  For those of you who do not get the quarterly ChartPack updates, I’ll share just a few examples of the keen insights that users can garner today from reviewing all the changes in the 40 Fidelity Select Sector Funds holdings.

Some Insights From This Past Quarter (ending December 31, 2014):

1. As I have mentioned before, it is very important to monitor for new management of a fund.  When you see a fund such as the Fidelity Select Environmental Services Fund (FSLEX) replacing a lot of its existing Top 10 holdings (in this case, 100% or all of its top 10 holdings), you should run for the hills because big taxable distributions are just around the corner.

2. Key Lesson.  Understanding strategic accumulation (buying) and distribution (selling) as practiced by Fidelity can add mightily to your investing prowess.  But understand that the mandate for these funds is to stay invested in their sectors and not hold much cash.  They are not market timers.  For example, if you ascertain that the market is trending up, the Healthcare Sector is strong and the Healthcare Providers are the hot industry group, then look at Fidelity’s holdings and accumulations for potential buys. For example, Fidelity Medical Delivery Fund (FSHCX) has a number of strong health care providers, such as UNH, DGX, and CI, all of which are strongly out performing the market.  If big brother is buying, you should at least look at these stocks.

3. Conversely, if the oil patch is in a free-fall, I would still review FSENX, FSESX, FSNGX and FNARX ChartLists, but would not be buying those equities they might be buying.  They have to be in that industry sector.  You don’t have to be a buyer unless you are looking for shorting candidates – then, of course, the stocks that Fidelity is selling are prime fodder for you.

4. I strongly encourage you to systematically look at all the charts with **** or XX after the stock’s name.  You’ll quickly recognize recurring patterns of accumulation and distribution.  For example, note how in the technology fund (FSPTX), a similar accumulation strategy is deployed on most new buys.  Powerful lessons.

5. Fidelity can help us investors in volatile areas such as Biotech.  They have over 40,000 employees with many of them on the research and portfolio side of the business.  Therefore, if they begin selling their position in Intercept Pharmaceuticals (ICTP), for example, chances are that they know something that we individual investors may not yet know.  Your radar should go up immediately! 

6. Institutional investors tend to be less emotional than individual investors.  For example, Blackberry (BBRY) burned a lot of investors over the years.  The Communications Fund (FSDCX) is, however, buying back into Blackberry (BBRY) with both urgency as well as conviction.  Check out September 26th when 65 million shares traded or November 13th when 50 million shares traded.  On January 14th, 78 million shares traded and the price moved form $9.32 to $12.63.  Fidelity likes BBRY.

7. When FSHOX is replacing half its top 10 positions and buying into Pulte (PHM) and American Campus (ACC), it is wise to check them out as well.

8. When you see a number of different funds all acquiring the same equity, as has been the case with Kinder Morgan (KMI), which is in pipelines, you need to take notice.  Oh, by the way, KMI is also now the fourth largest holding in the S&P Energy Sector Spyder (XLE).

9. When you see the same equity appearing as a core position in some half-dozen Fidelity Sector Funds – i.e. McKesson (MCK) – perhaps it might be a good stock for you long term investors.

10. On the flip side, when Haliburton (HAL), a major player in the oil services sectors, gets dumped by multiple Fidelity Funds, don’t wait for the price to get crushed further.  Get out or short it.

11. Make it a habit each quarter to review these charts and you will quickly see, for example, that when FSRPX begins buying Lowe’s (LOW), you’ll say it’s obvious to you.  The rallies are on higher volume with lighter volume on the reactions.  You’ll begin to feel like a pro as your chart reading skills grow.

In Closing:
What’s become overwhelmingly obvious is that the ChartPack is a powerful quarterly money-making tool.  It also continues to be upgraded with all the helpful suggestions made by you, the early adopters, and my own regular efforts.  At the same time, it takes a lot of work on my part to put out these quarterly updates.  As one user told me, “this is a sensational organizational tool that also offers up profitable ideas every three months and you are practically giving it away.

To acknowledge our appreciation to our group of early-adopter friends, we’d like to offer you a special opportunity to renew the ChartPack for 12 months at $19.95 through February, 2015.  In March, we will be raising the annual price to $49.95 which will still include four free quarterly updates.

Trade well; trade with discipline!
-- Gatis Roze


Important:  If you have modified any of the charts in any of the ChartLists that start with “GR - ”,  those changes  will be deleted as part of the upgrade process.  If you want to keep those changes, you need to copy those charts into a different non-"GR" ChartList before you upgrade!

To Upgrade the Tensile Trading ChartPack, follow these steps:

1.   Log in to your account and then click on the "Your Account" link in the upper right corner of the web page.
2.   Scroll down and find the "ChartPacks" area towards the bottom of that page.
3.   Find the entry for the "Tensile Trading" ChartPack in the table that appears.  (If you don't see it, that means that you didn't purchase it - click here to purchase it.)
4.   Click on the "Re-Install" button next to the Tensile Trading ChartPack to start the reinstall process.
The download should take about 15 seconds.  At that point, you can explore the new ChartLists and updates.

Gatis Roze
About the author: , MBA, CMT, is a veteran full-time stock market investor who has traded his own account since 1989 unburdened by the distraction of clients. He holds an MBA from the Stanford Graduate School of Business, is a past president of the Technical Securities Analysts Association (TSAA), and is a Chartered Market Technician (CMT). After several successful entrepreneurial business ventures, Gatis retired in his early 40s to focus on investing in the financial markets. With consistent success as a stock market trader, he began teaching investments at the post-college level in 2000 and continues to do so today. Learn More