Hello and welcome to Fundamental Wednesday as we talk about trading growth and value stocks. My name is James Boyd. We welcome all of you here today. We also have Cameron May in the chat. We welcome him and all of you here, such as Dom, David, Barat, Kevin, Lola, Bill, Fayez, Jeff, Dean, and many others. Dean wants to know if we're going to talk about communications. Dean, what do you think? Alright, just real quick, let's go ahead and hop right in. Now, remember that Cameron and myself, we do post educational content on X. There's my handle. Cameron's actually put his handle in the chat. And feel free to follow us there. We also do post-announcements as well.
And also, just real quick, as we get going here today, again, some of our topics will be maybe kind of looking more at growth when the market is more bullish. Other times when the market might be more consolidated, we might really talk more about value. On what the current market is showing and also where, as a class, where we think the market could be going. Now, just real quick, remember that the information here is provided for general informational purposes only. Schwab does not recommend the use of technical analysis as a sole means of research. So like when we talk about fundamentals, fundamental analysis. Technical analysis, study of price and volume, right? When we actually look at fundamental analysis, we're actually looking at price in comparison to like sales, earnings, dividend, cash flows, all of the above, right?
We're trying to kind of get a sense of how much are we paying for something. But also with that, when we talk about fundamental analysis, we're really looking at income statements. We want to say, show me the money, okay? We also want to see the balance sheet. What are their assets like? Liabilities, equity, all the questions you asked when you got married. Don't say you didn't. Now, just real quick as we get started. So you are a fundamentalist. I know you are, okay? No P is. Had to throw that in there. Okay, Pia, you can get me back. Now, also remember that the paper money software application is provided for educational purposes only. Also remember that the risk associated with it in dividend paying stocks, they could reduce those dividends or stop paying those dividends, okay?
The dividends, whether they pay a dividend, also kind of tells me where the company is in its life and also kind of maybe its growth strategy, perhaps. Remember when we talked about investing, investing involves risk. And also our examples here today, I'm going to go back to, we'll take a look at where the market is. Very interesting Wednesday. So glad I didn't go on vacation. My goodness gracious. You'll see why in just a second. Now, we'll also talk about, I'm going to focus on a couple key sectors. I will not let it out of the bag early. Maybe Dean is right. Okay. And then what we want to kind of talk about here today is kind of more the entering of positions. Yesterday, we talked more about management.
So we want to kind of look and see, is there more of a flavor or an interest towards growth? Or is there really more of an interest toward income or value? Now, quick heads up. If you said, well, I don't know. That's the question I have. Well, Kevin and I do an ETF class on Friday. And we talk about a product, three of them, that actually one product actually looks at growth. The other product actually looks at income, income stocks. Looks at, let's say, value stocks or what's in the basket. So feel free to use those to try to get a temperature gauge on whether market participants are kind of more interested in growth, income, or value. Now, you might say, I don't care what other people are interested in.
I like income. And that's fine. And that's fine. But we're just saying, what do market participants, what are they focusing on? What's trending perhaps the most? But it is okay if you said, James, I kind of really more focus on income. That's okay as well. Now, just real quick, let's take a quick look at where the indexes are. Let me kind of use that little yellow pencil. Now, first off, if we talk about the Dow Jones, if this goes up anymore today, not sure if we can handle it. OK, 469 big ones on the Dow Jones. OK, remember when the Dow was like, 7,000, okay? Now it's actually punching 468 points in a day. Pretty interesting. The NASDAQ, now that was not before 1970, by the way.
NASDAQ, 81 points. Notice the NASDAQ lagging a little bit. Notice the SOX has actually lagged. Now you got to remember when the market goes from selling off to starting to go up, NASDAQ typically leads. That's normal, okay? And sometimes you get the NASDAQ where it might go up to some target areas, some traders take profit, and it pauses a little bit. The other indexes, example given the SPX, 43 points, about 7 tenths of a percent, trend three. NASDAQ is still holding trend three. Russell is still holding trend three. NASDAQ, just give it to us, trend three.
Exponential moving average, and the 30-day simple. But all four of them actually in trend three. Price above the 10-day exponential moving average and the 30-day simple. Now, what's been mind-blowing here today is you got the VIX at a very low level, 15. 42. Do you remember when it was above 20? Seemed like it was forever ago. Now, remember, VIX falling is not a bad thing. Now let's take a look at these charts, these look like and we're going to fast fire through a couple so tell me what you see on this chart, so here we are on the SPX, you know kind of going back to right around July 3rd, thought there might be a little consolidation there was but if we kind of look and see has there been a higher plateau of support well over time, we kind of had an intraday low we had another intraday low most of the bodies of those candles were right around 6237
created a higher level support now if you kind of look at the kind of the the up movement some people you know we talk about bull flags I made the term called bull flat because sometimes it doesn't really look like it flags back it runs up and it pulls back. Now, there's no technical term for bull flat, but the difference is when it does pull back that it kind of looks like that. I've always called this, for the last 15 years maybe longer, it's more like a hockey stick, okay? Sideways range. If you said, which one would you want? You know which one the technician would want, the one that pulled back less from the high. That's the one, the bull flat.
Now, if we take a look at this and we can count to three, The 10-period moving average went really green a couple days ago. The 20-period moving average went green three days ago. And then we had the moving average cross yesterday. Now, today we saw a little bit of a gap. We saw Japan overnight go up 5%. There was some news actually on the tariffs, and the S&P liked it. So kind of the timing of this on the SPX. Interesting. Okay. And that's so we asked, what just happened? We had a higher high. We made a plateau of support. We need that. And now, what we're actually kind of thinking as technicians and fundamentalists, 62. 75, could that be the new potential support level?
Now, if the SPX is going up, it probably actually tells us there could be some sectors getting a little, well, hammer time? I'm going to have to take a look at that, okay? Now, if we kind of said which sectors. Now, let me throw this out to you, okay? Which sectors are you watching? Okay, which sectors are you watching? Now, before I go to those sectors, just want to show you what the rut's doing just real quick. If you like Russell, the Russell looks like in the shorter term. Don't forget the question, which sector are you watching? Type it in. Kind of looks like a little ascending triangle, if you will, okay? And if we can count to three, one, two, three, okay? It's pretty much three today, which is the moving average crossover.
Russell, smaller caps even getting involved. And the last but not least, if you look at, let's say, the NASDAQ, I need to look at Dow too. The NASDAQ itself, kind of holding in there a little bit, it's still above the 10-day exponential moving average, if you look at that. moving average. It's well, it's going to be closer to the current price. The exponential is going to be a little bit more of a slack to it. And if we pull that up, you're going to see that that 10-day exponential, there it is right there. And the green colored candles, that's on chart number five that we actually always look at. Chart number five is actually the trend candlesticks. And they have been Christmas tree green. Okay? For a while.
And it just feels like Christmas. Man, there's been a lot of green there. Which one don't you like? Which one? Now, if we go back, the one that is actually kind of getting a little push that we need to make mention of is this one. What do you notice here? And it goes back to counting to three. One. And you're going to see that sometimes this can happen. If there is a pretty strong push, the 20-period moving average and the crossover pretty much happen the same day. Oh, no, that doesn't. Now I'm confused. Well, don't be confused. They don't have to perfectly line up on different days. Sometimes you can get the moving average crossover to cross first. Then the 20-period moving average goes green. It doesn't matter. Count to three.
Now, remember, those who take that entry number one, they're trying to buy closer to support. It's a more aggressive entry. They could be right. They could be wrong. Someone that's getting on, let's say, number two or three, they're wanting more confirmation. It's not free. The investor's buying a little higher support, hoping that by waiting, it's really showing that the trend is materializing. It doesn't matter if we get in one, two, or three. There's risk with all of them. So that's what we always know. If taking any entries, there's risk with all of them. Now, speaking of sectors, but I want you to kind of keep an eye on the Dow Jones. Auction, the Dow Jones Caterpillar. Meow. OK, getting a little push here. Speaking of meow, we actually saw the sectors.
Let's kind of rank this by percent, which health care for the second day in a row has gotten a little push, but still been a pretty good downtrend. Not an area that we're going to really focus on, keyword is, yet. The second sector that's gotten a little push here is industrials. You think it's at a new high? Maybe. Well, if we go over here to the 20, 55-day high, it's saying it's at a short-term high, 20 days. Intermediate high, 55. Okay now I know you've been looking at that don't say you haven't been looking at that okay now If we look, now remember, option number one is the investor might say, James, I'm just going to buy the sector. I'm not going to buy an individual stock.
I'm just going to buy the sector in general. That is an option to consider. Now, if you said, James, I'm pretty good with picking some stocks, the investor might say, I'm going to look at some stocks that might be moving up stronger than or in lockstep with what the sector is doing. So we're going to highlight, for example, industrials. Yeah, and kind of let's highlight Okay, there, I put a little check mark there. So I put a little kind of check mark there on the right-hand side. That's gonna be something to focus on. You're also going to notice that financials, that's going to be one we focus on, JP Morgan, Bank of America, Citi, Morgan Stanley, Goldman Sachs, Visa, MasterCard, among others that are getting a little push here today.
Now, obviously tech has been tech. The other one that we're going to kind of keep an eye on is discretionaries, got a check mark there. That second-to-last one actually third-to-last one, my gosh, there's more uh basic materials actually been quite strong, communications we mentioned yesterday real estate has gotten a little push here, okay? Sorry, I'm not used to a PC keyboard and uh. You got utilities, okay? So when you look at these, they're kind of highlighted, which if you go control space bar, highlights, control space bar, it unhighlights or command space bar if you have a Mac. There's kind of a lot of different sectors to choose from. Notice again the trend three. If that is not tattooed in your mind, it should be.
Now the other day, I think it was probably last week, they said, James, how come it's possible that you could get a couple technicians and one says it's bullish and one says it's bearish. I got tired of that, okay, from hearing different viewpoints. And I said, I'm going to create definitions. So that way when my feelings, and we're all emotional creatures, right? We're all emotions, sometimes. So in this trend right there, if we go to edit formula, you're now going to see it's going to give us a definition of really what is number one. It's not about what are my feelings. Doesn't matter, okay? And now what you're gonna see is if you look at what is number two. What are your feelings? It doesn't matter. And what is actually number three?
What are my feelings? It doesn't matter. And if you actually look at number four, you're going to see that it shows a definition of it, gives even a little write-up of it. What are my feelings? It doesn't matter. And if you actually look at, let's say, number five, there's a write-up on it. All you've got to do is just right-click on it and go to edit formula, and there's a little write-up on it. Now, the other day I was talking to someone, and the person said, 'I don't like to talk to any technicians because it doesn't matter what they think.' Someone initially would take that and say, 'Wow, I'm offended.' But actually, if they have a rule set, that's probably the right prerogative to have.
Because if someone had definitions of what trends were, when you're looking at price in relationship to maybe a technical study, then it doesn't matter. Because the investor could just look at what the definition is and classify it and categorize it themselves versus hearing what someone else's thoughts are. I mean, thoughts are thoughts, right? Now, what I want to do is kind of take this. So I just want to go back to that comment because someone asked, how could people read it so differently? Answer, they don't have it classified or categorized like this. If they say they do, give it to me in 30 seconds, and you're probably not going to get it. So I want to show this to you. When we actually make comments on trend, it's based on categorization, which was created by myself over time.
And that way, in a class sense, we can kind of talk about different types of trends. Now, do you have to use this? No. You do whatever you want. But for this class, we're going to use it. Now, what I'm going to do is let's kind of talk about some of these stocks. And I want to go back just to real quick. I want to go back to Apple for just a moment, okay? Now, we talked about this yesterday. I just kind of want to make mention of this, and I want to kind of do something in terms of practice, okay? When you take a look at, let's say, Apple, okay, one of the things we saw today, do you notice anything on Apple today that's a little unusual?
Now, we can't say, 'oh, man, the stock went up a lot today,' but was there anything technically done? That was a little, that stood out. And let me zoom in a little bit so you can see it. If we kind of said, well, what did it do today? Well, let me just kind of write down number one, number two, okay, and number three. So there's number one, two, three. You also are going to notice that we had an intraday low here today. And it went right down to the horizontal, say this with me: resistance. It's not resistance; it's resistance, and what you're never Now what you're now going to notice is a little push to the upside hammer candles. No, I don't have the hammer, hammer pants on not yet.
Okay, the candles aren't it's not closed there. Okay, some of you get all excited about hammer time; control yourself. Hammers can also be red candles and/ or green candles. Okay, now, if you're going to notice this, we actually have that earnings coming up right there. Why do I bring this up? Well, a lot of times we see the red candle, we think, 'oh, there's nothing to look at here.' Not so fast. When you see this sell off intraday, and it pushes right back up closer to the high. Well, what some technicians do that have experience is they actually use the high of today. And they say, look, the high of the day is 215. 21. Now, there is no mathematical back-tested dollar amount, percentage amount, et cetera, that I have ever seen.
But what we're going to do in this case is we're going to take the high of today, which is right about 215. 21. I'm off by $0. 06. And what I'm going to do is I'm just going to add, let's say, 25 cents above that, okay? Now, you might like a dollar amount. You might like a percentage. What we're going to do is we're going to right-click on the chart, go to Buy Custom, and we're going to go with OCO bracket. Now, when we do this, the order type that we're going to do here in this case is we're going to buy the shares, but it is a buy stop, okay? So if we said, look, that high price is 215 . 21. If I looked, literally, it was 215.
2016 if you want to get real penny focus there. 215 . 46. And this is saying if we get to that price or higher, buy the shares of the stock. So number one, you don't always have to be there watching the market. Now, this order is good in the fact that if it goes to that price or higher, it tries to get in, okay? The bad part about this order is we don't know what the cap price is going to be. And so what some investors do is they might say, look, I'm going to do a stop limit, okay? The investor says, I want to buy if it goes to that price or higher, but I don't want
trying to get in I want you to think of this like an auction you go to an auction and they're all okay and you know the price you're bidding up the price right it goes up you're trying to get in and that limit price as they go and you're just saying look the limit is how much you're willing to spend or have Okay? Now, the wider these two numbers are, the greater the chance. that you might get it. Problem, if tomorrow opens up and it's at 217 and never comes back down in this range, this order could be completely missed. So trade, kind of idea number one is I want you to practice a buy stop limit order, okay?
Now, what I want to do is I want to go back to the target and I want to go back to the stop. If we go back and we kind of look at this and say, where might this try to go to? Well, kind of these levels. Now, we will talk about Tesla in just a moment. They have earnings today. We got 224 and probably right above there where we got more touches. It's going to be right around 240. Now, whenever we're looking at like trading something, in my mind, I'm always thinking, hey, what's like a 6% move up? Why 6%? Well, because typically, you might be risking 6% of the enterprise. Anyway, so that's like a one-to-one reward-risk ratio. You need the stock to go at least 225 to probably offset what the risk is in percentage terms.
Two, what you're now going to see if we said, well, what about 8%? 8% is right around 230-ish. And if we set a 10% move, it's really right around 235. Now, some traders, all they're trying to do is go for those 8% or 10% pushes to the upside if they can go up there. They want something that can offset what the risk is and something a little bit more. Now, you might say, James, that's it? I like to go for more than that. Wonderful. Now, what I'm going to do is I'm going to put the target at 235. Data GTC, data GTC on the stop. And what we're going to do is we're going to set the stop underneath the moving average, which is where the intraday low is. Now.
I want you to kind of think about something, and I know when I first got started, I can absolutely tell you, I would say for years, I never looked at companies' finances at all. I was buying and selling ticker symbols, hoping that they would go up, and I was hoping that it would mask my ignorance of not looking at the fundamentals, okay? I never even thought really about the business and how it related to its competitors. Forgive me. I was 18, okay? 30 years ago, that's what I thought, okay? Times have changed. Now, the biggest actually thing is, if you look at this, that moving average is at 212 and change. And if we took, let's say, less 2%, it's going to give us 207. 85. 207. 85. Okay.
Now, what I'm going to do is in this example, let's say we did 50 shares of stock, and now this is going to be right around the position size of what we could do. Now, I want to bring this up for just a moment, OK? When you're looking at buying, even trading a stock, you should be least aware of where are they fundamentally. When you talk about fundamentals, And it's interesting how many people talk about fundamentals that can't even produce income statements and balance sheets for themselves, okay? So it's just interesting. Talking about it, doing something totally different. If we take a look at kind of some of the things that we're seeing right here, I want to pull up just real quick right on Schwab.
com, and I want to kind of show you where you can see this information. Now, I want you to imagine that someone is using your money and buying some shares of the stock. Now, when I just said that, now, Bill, I want to point you out, okay? Bill or Dean. I want you to imagine that someone is taking your capital and investing in XYZ stock, hypothetically, not real, okay? Well, as soon as I say that, you now want to know what in the world is going on and what are you buying, okay? Because the trust is lower, typically, okay? Now, what I'm going to do is if we bring up Apple just real quick, we're going to scroll down. We're now going to see information on dividend.
If you're a dividend person, you can actually see that information right there and what they've done over time... You're also going to see the information about the earnings. A lot of businesses, they're not like utility companies where quarter over quarter, it's just kind of like clockwork. A lot of businesses tend to be related to the consumer, which can be cyclical, depending upon the time of the year when those consumers have money. The other part of this, we can see the historical earnings and the estimate in dark blue and the actual light blue. I want to scroll down for just a sec., to two of my favorite areas. I like to know who are their peers, okay? And some companies, it's very hard to kind of say who are their competitors, okay?
Now, so that's a place we could go to look there. And you could click on 'Show More', and it's going to break it out to a table. But what I really wanted to show is: We want to at least be made aware of, like, where are they in terms of their balance sheet? Balance sheet is just taking a look at their assets, their liabilities, and their equity. It's important to know the assets because those assets could become or they could use those assets for capital expenditures to create a new product or service that then could turn into income. By the way, that also could actually turn into a product, a company that's actually different than their peers. So when we take a look at this and we see these numbers over time, we're going from right to left.
I want you to think about your balance sheet. Your assets. Do your assets over time increase? James, I don't like your question. Well, it's just a question. Do your assets, are they going up over time? Total current assets is really talking about things like treasury bills, etc. Anything that matures in a year or less that could be easily converted to cash. Total assets would include that, but maybe also buildings as well, not gonna mature in a year, et cetera. So you're gonna see the total assets higher than total current assets. And the question also is, are those assets going up over time? Now I think if yes, most people, they would say, yes, I want my assets to go up. Now remember, those assets, think about this.
Wonder if someone put $25,000 in your trading account. Wonder if they put 50. A hundred? $250. Can I get a 500? Wonder if they put a million. And all of a sudden, when I said those numbers, you're thinking, geez, if I could take that money, maybe I could grow that money. Well, it's the same thing the companies do, okay? So the reason why we care about the earnings, those earnings actually then go back to the balance sheet to assets/slash/ equity. Now, to get those assets, sometimes they use debt, okay? And sometimes when we actually see the assets go up, they're using debt to build the business. Is what is the equity of the business? And what you're now going to see is Apple has kind of dropped a little bit if we're talking about total equity.
So I'm bringing that up because if you look at the stock price of Apple, it's kind of underperformed. Right? Now, some of you Samsung people are thinking, yeah, yeah, that's right. We're taking it to them. Okay? Now, if we looked at, let's say, Microsoft, and we went back down to the bottom, what does this look like for Microsoft? Well, little different story, isn't it? Total equity, assets minus liabilities, it's gone a completely different direction. Now, remember, people say the fundamentals don't matter. I'm telling you, if you talk to people that own the business, they're on the board, this is what they look at. Okay? And if you take a look at this, you're going to see that the balance sheet again is cumulative, okay it's over multiple quarters, multiple years, where do they stand.
Now, when we talk about the income statement for just a moment, this is Microsoft. Now we can see the revenue, the expenses, just like in your life. And is the revenue and expenses important in your life? Say yes, because it's yes for the business as well. And we can see the cash flow statement. Cash flow from operations would be like your everyday life. Cash flow from your investing would be like your portfolios, et cetera. So this stuff in business is relatable to us. Is we just don't have as many numbers before the comma, but there's similarities. Now, what I want to do just real quick is I want to go back to another example. So trade example number one was Apple. We're saying that Apple's kind of been in a slump a little bit fundamentally.
And can they start to create some new products? Maybe chips as well. To kind of widen or deepen that revenue and earnings per share. Now, what I want to do is I also want to go back to some of the financials for just a second, OK? Now, how many of you have ever heard of a small company called BlackRock? You ever heard of that small company before? That's a joke, okay? Now, what I'm going to do is I'm going to go to the Analyze tab for just a moment. You might be thinking, well, why are we bringing this up? Well, one of the stocks or sectors, I should say, that's been quite strong is financials, okay? Now, what do they do? Privately owned investment manager.
So when we say investment manager, they do services to institutional, intermediary, individual investors, corporate, public, union, industry, pension, insurance companies. Did I say everyone? Almost everyone. Third-party mutual funds, endowments, public, and it just keeps going. I mean, it literally just keeps going. Now, what happens is they have what's called assets under management, right? So the firm might be managing $10 trillion. And they're just making like a little bit, maybe two-tenths of a percent. But when that asset's under management increase, increase, increase, increase, increases, and that maybe fee might be, let's say, two-tenths of a percent, 30 basis points, 40 basis points, et cetera, there might be some revenue growth over time. Now, there can be a relationship between S&P 500 values.
and maybe what blackrock does now what you're going to take a look at is if you can look in 2020 okay if we're talking about earnings per share sales per share they're at 104. let's talk about sales first top of the income statement 104 125 117 they dropped they were slightly up on the 118 and then a big year at 134. okay now what you could probably do is If you could plot sales per share and then overlay with it S &P 500 values, there could be some correlation. Now, when we take a look at just because they were bringing in that, that doesn't necessarily mean they were able to keep it. Maybe they had some expenses, okay? In your life, do you have expenses? Yeah, sure, okay?
Do sometimes things come up? They come up in the business too. 38, 34-ish, 36 and a half, 42. Now, you can also think of BlackRock kind of very similar to maybe like the SIBO or the ICE. The SIBO and the ICE, they're actually talking about the transactions, right? Where BlackRock, we're really talking about an investment manager, okay? Now, what I want to do just real quick is let's go back to this, just kind of show this, okay? Now, what I'm going to do is let's bring up BLK right on Schwab. com. Scroll down to the bottom. Now, the one thing that we want to look at is Some investors, they like to kind of see a company where they maybe continually beat.
Not just slightly, but sometimes there's quite a bit of difference between what the expectation was and actual. Have you ever seen a company that like literally matches what the expectation is? They barely beat by a penny. They're like managing the earnings, right? They bring in so much money and they expend down to where the earnings per share needs to be to meet the expectations. When you see a company that actually kind of has that separation between actual and estimate, a lot of investors like that more because they're saying, look, you're not just managing the earnings. Now, I want to go down to, when we take a look at this, a couple other companies that stand out is you've got Blackstone and you also got Goldman Sachs. I want to talk about Goldman Sachs as well.
Now, if we take a look at this and we bring up, let's say, BLK, setup. So if you had to explain to someone what is your setup, how would you explain it to them? Well, I think most people might say, James, I'm looking for a stock. If I had to see, I want to see an uptrend. The uptrend. If we're talking about something that has intermediate trend the last two, three months, it's gone from the lower left to the upper right. And then recently, in the last two to three weeks, we're probably above an area of support. That also could be, let's say, a recent resistance. Now, what you're now going to notice, if I kind of look back on this, this old high, which is right around 10.
66 or so, we rallied up. We fell back down on the earnings. And this is sometimes what we call when you get stocks that are being bought up. As the stock gaps down and it rallies after gapping down, many technicians with experience might say, James, this is one of the stronger signals that we could see. Because if someone is buying into broken support, they think they have enough money. Capital, there's other institutions that could turn this around. So, shorter-term broken support level for us as retail ambassadors doesn't necessarily mean bad for the institutions. The institutions might be saying, 'we want to get in anyway.' OK, thank you very much for the drop down. We're now going to start to build a position.
As retail investors, we might say, 'look, I'm all in with 58 shares.' They're all in with $5. 8 million shares, 58 million shares. Boy, it would be nice. OK, now, if we take a look at this, do we see a setup? Well, if you take a look at, let's say, BlackRock, it kind of has. Now, by the way, if we kind of said, what letter of the alphabet do we see in the market a lot right now? What I saw when I looked at the Dow 30, S &P 100, NASDAQ 100, like I do every day, okay? The letter of the alphabet that I saw a ton was the letter W. What type of W? Was it more of the double bottom? Was it more of the tilted down?
Or was it really more of the tilted up? And the answer is Tilt it up. When you actually get that tilted up, some technicians, they like that. They're actually saying, hey, look, we have a higher low relative to that low. And they could use the middle of the W as a potential support area. Or they might say, James, I'm going to use that last low there here as a place to set a stop. Now, if this market, OK, goes up higher and it goes up higher and it goes up higher. Now, I think we're at what? High of the year. I think last year, see my post on X, I think we had 50, 50 new highs. Okay. And this year, if we include today, I think it's the 11th high of the year.
Okay. Now what I'm going to do in this case is, so this is kind of like a bullish case in the market. We're going to right click on the chart. We're going to go down to buy custom, and I'm going to go with stop. Now what we need to understand is not every position is going to have chairs, 100 chairs, we might say, hey, look, we're going to do a smaller amount. Let's say we did $8,500 worth. That is the position size that we could do. That does not mean the investor has to put it in all at once. But if we decided to put it in all at once, there it is. It's going to be about seven shares of stock.
So if I said, hey, we're going to buy seven shares of stock, that's what it looks like. And now what we're going to see is when we look at the stop right there, if we try to say, I'm going to set a tight stop, well, that tight stop would be right about $1,103. If we said, 'Hey, we're going to set a little looser stop and set it underneath the last low, it's going to be really about $10. 86. So if I took $10. 86 and tried to give a little bit more wiggle room, less 2%, it's going to be a stop at $10. 64. 28. Now, historically, okay? There have been a lot of discussion upon a recession.
And we kind of kept saying, 'okay, so, I mean, there's always a probability of recession, okay? Economic slump, sure. But the biggest actually thing is, A lot of these, when we talk about industrials hitting brand new highs, financials hitting brand new highs, financial companies tend to do better if there's not a recession, like many companies, of course. Now, if we take a look at this, I want to kind of show you this. If we kind of said, OK, just go back for just a moment. If we were to, let's say, look at this and say, well, James, is there a potential target? Well, if you look at, let's say, BlackRock and said, well, I don't even know where the target is. You might have to go back a couple of months and say, is there any potential pattern?
Well, you got triple tops, right, where we broke out above. You had a prior low. And if we went James body to body Boyd, as I'm sometimes called. Sure, I'll take it. And if you notice that, that extension is right about, let's say, 12:39. That's if you want to set a target, okay? So if someone says, 'I'm going to buy BlackRock', they're really saying, 'look, I'm bullish on the stock market.' Why? Because this is the business they're in, okay? Now, I want to go back to just something real quick. If we look at ICE, intercontinental exchange, if we said what's the difference here? Well, the difference is here-they actually do they provide the technology and data to financial institutions, and it's all over the place, u.
S UK European Union all over and, what you're going to see is, they do exchanges fixed income and data services mortgage technology. Now, so that's one that also could kind of be in the realm, but it's not investing manager, okay? So it provides technology to financial institutions, important as well. And the other one we actually kind of take a look at that many of you might know is the SIBO, okay? Now, there's been a lot of discussion upon, look at the volume in the market, stock volume, derivative volume, right? Same thing goes there. Those contracts, right? Maybe if they could make a fraction, right, on the bid-ask spread, go into the analyze tab for just a moment. We know they're based out of Chicago. And what you're going to see is it operates in exchange.
And you're now going to see that's what they actually do. They're looking at derivatives here, okay? So it's the technology. So it's not just investing managers. It's who are the companies that are actually providing the technology of it. And what you're going to notice in the past couple of years, SIBO, they've actually bounced back quite a bit on the earnings per share. So those are two other companies to kind of keep an eye on. Now, I'm going to fast fire a couple of stocks, and I want to go to questions. When you look at companies like C, Citigroup, This goes back to the comment I made on recessions. If these banks feel like and they actually see from their own income statements, hey, we don't have as many people defaulting, and we're willing to lend, etc., etc.
Some of these financial companies pushing to the upside. Now, remember, Jamie Dimon himself talked about how he thought there was a greater than 50% odds of a recession. That's fine. He can say what he wants to say. He's been wrong so far. I don't know if he's had a time frame on that, but his stock hit a brand new high. I'm sure that he's really upset that he was wrong, right? Now, also kind of notice that when you take a look at some of these smaller ones, even like Bank of America, swinging back to the upside, not hitting a brand new high. But again, if these financial companies are pushing to the upside, This is a good sign for the stock market. Good sign for the consumer as well.
In this case, remember, the financial companies, they are the oil to the stock market engine. If you drain the oil out of your car and turn the key, it ain't going to last very long, okay? You need these financial companies to be in a good financial position, willing to lend, and they have consumers that are healthy, that are paying them their money back. plus the interest, okay? The point I want to really make here is two companies that we're going to keep an eye on is Visa, which has earnings coming up, and of course, we would include their MasterCard, okay? Now, I also want to kind of make sure that we said that we were going to keep an eye on also on TTD. We have not forgotten about that.
We've kind of been talking about maybe a little cup and handle pattern higher level support, keep an eye there. And then we have Tesla today announcing after earnings. Could that one get a push? I want you in the paper money account to look at the after hour activity. Watch the volume, watch the price action. That's going to be something interesting to watch as well. I'm out of my time here today. If you said, James, where could we actually see this like on a recorded basis as well? Well, you could go right back to this page, which is the YouTube page, Trader Talks. Schwab Coaching Webcast. I'll put it in there again just to make sure I didn't get any extra letter there. There you go. You go to this page.
If you have not subscribed, just click on subscribe. You can see all of our content. Also, if you said, James, where can I also see a playlist of this class? You could see it right there. So if you said, what were some of the previous classes that you did? And we talked about these previous lessons right here. Study them, okay? You're going to see a theme of what we talk about. And last but not least, also realize that I do post when I'm not teaching. I do post throughout the day on X. Now, remember with what we discussed here today, it was done for example, illustrative purposes only. I want to thank you so much for your comments and your participation. We did two trade examples, and we talked about some other stocks. A move, stay tuned for actually Mike Fairbourn coming up next as he talks about markets and sectors. Remember that all investing involves risk; the investor who is sharp really always focuses on position size and risk management. Okay, and also remember that this this class is on a weekly basis, so join us next week as well. Thank you so much, stay tuned for Mike Fairbourn coming up next, and thanks to Cameron as well. Take care, bye-bye.
