Momentum/ESP Portfolio COMBO Tuesday – Take $500 Profit on BBY. Plus a New Momentum Trade and an Update on an Accelerating ESP Holding

Great News! New York Stock Exchange Advance Decline Line Makes Quiet New High

We start the week on an up note as we’re taking a $500 profit on Best Buy (BBY). The stock is getting a bit overbought and could pull back in the short term. So it’s time to take the money and run. Our last two closed trades have delivered over $1000 in profits.

•SOLD Best Buy Inc. (BBY). Bought 1/28/2025: $85.50. SOLD 2/18/25: $90.50. Return for this trade: $500/100 shares (5.85%).

• SOLD - Confluent (CFLT) Above $30. Bought 1/27/25: $30.05. 2/12/25 intraday price: $35.15. Return for this trade: $510/100 shares (14.5%).

Image courtesy of depositphotos.com

Market Update

Stocks have shaken off last week’s bad vibes and the volatile news around the world with a nice start to the week – a new high on the New York Stock Exchange Advance Decline line (NYAD). As I stated in this weekend’s Smart Money Passport Macro Update, NYAD has been acting much better than the major indexes lately, which is the reason I have remained positive on stocks.

For those who aren’t familiar with the indicator, it’s a measure of the market’s breadth which filters out the noise which can be present in the major indexes whose action can be distorted by big stocks. Instead, NYAD is a simple to interpret indicator. When it rises, more stocks are rising than falling. When it falls, the opposite is true. The bottom line, and why it’s most useful, is that a rising AD line means that the odds of picking winners is much higher. Moreover, when NYAD makes a new high, it suggests that a new rally is unfolding.

For its part, the bond market is stable after flirting with the important 4.5% yield are last week. The U.S. Ten Year Note yield (TNX) is trading just above 4.5% this morning and could move lower if the next inflation report (PCE – the Personal Consumption Expenditures Index; the Fed’s favorite inflation gauge) comes in better than expected.

In this issue I am updating both the Momentum and ESP portfolios due to the holiday.

If you missed my recent chat with Jason Pertz (Against All Odds Podcast), it went great. Both Jason and I went to very interesting places during our free flowng conversation – offering actionable suggestions which can help your trading – and we had a lot of fun. You can view the conversation at:

Thanks to everyone for your ongoing support. I really appreciate it.

Thanks also to all the current Buy Me a Coffee members and supporters. Special shout out to new members who now have access to the Sector Selector ETF Service, included, at no extra charge with your Buy Me a Coffee membership. Two new trades were posted yesterday.

For active trading, short term trading strategies, check out the Smart Money Passport.

For large potential profits with longer term holding periods in stocks check out the Smart Money Passport Weekender Portfolio.

If you’re thinking about day trading, my new book – Day Trading 101

– will get you started along the right path.

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