Centerpoint Energy
It has been a while since my last post but so what. You only want me for my huge sack anyway! Not sure if you have been watching but energy has been on a move lately. It is moving for several reasons, super cold weather in the USA, reduced global production, and my favorite inflation. Looking at the chart I have placed two different potentials.
First, and what I believe to be most likely is that if the stock market doesn't crash next week, the price of this stock will break free of the Symmetrical Triangle. It appears upon closer examination that there is a lot of pressure to break out above the triangle. If the price rises above ~21 bucks it will rise to about 25 before settling back to the trend line before rocketing up to the $30 target. We are about to see stimulus checks, Tax returns and a lot of other things to drive consumption to a market that cannot currently keep pace with demand. Meanwhile, more and more Americans lose there jobs. Stagflation is coming. But why not take some profits along the way and keep building to that tiny sack you have. I also like that it has a dividend at 2.99% not bad get paid for holding it and get paid for owning it. It is like a sack inflator.
However, if the pressure breaks down it could be even more dramatic than my 3 wave pattern. Why do you ask? it is because the world is a strange place and history rhymes. Next week is close enough to the 1 year anniversary of the last correction just before the world plunged into COVID hysteria... If we had reason to see the market burn last year all we have done since then is provide more fuel for that fire to really get cooking. In which case I will move a bigger sack to SPXS very quickly. The point of showing the downside is to say I would not buy back in I would wait for a trend reversal. This is not a falling knife I want to catch. The bottom could very well be much much lower.
Overall, if I see it move past the $21 level I am in good shape to buy more. I will be keenly watching for the break up or break down. Pennies to the downside for this trade dollars to the upside.
Let me know what you think of this perspective. Going pretty basic here on the analysis. Let me know if you want to see it a little more in depth.
First, and what I believe to be most likely is that if the stock market doesn't crash next week, the price of this stock will break free of the Symmetrical Triangle. It appears upon closer examination that there is a lot of pressure to break out above the triangle. If the price rises above ~21 bucks it will rise to about 25 before settling back to the trend line before rocketing up to the $30 target. We are about to see stimulus checks, Tax returns and a lot of other things to drive consumption to a market that cannot currently keep pace with demand. Meanwhile, more and more Americans lose there jobs. Stagflation is coming. But why not take some profits along the way and keep building to that tiny sack you have. I also like that it has a dividend at 2.99% not bad get paid for holding it and get paid for owning it. It is like a sack inflator.
However, if the pressure breaks down it could be even more dramatic than my 3 wave pattern. Why do you ask? it is because the world is a strange place and history rhymes. Next week is close enough to the 1 year anniversary of the last correction just before the world plunged into COVID hysteria... If we had reason to see the market burn last year all we have done since then is provide more fuel for that fire to really get cooking. In which case I will move a bigger sack to SPXS very quickly. The point of showing the downside is to say I would not buy back in I would wait for a trend reversal. This is not a falling knife I want to catch. The bottom could very well be much much lower.
Overall, if I see it move past the $21 level I am in good shape to buy more. I will be keenly watching for the break up or break down. Pennies to the downside for this trade dollars to the upside.
Let me know what you think of this perspective. Going pretty basic here on the analysis. Let me know if you want to see it a little more in depth.
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