BUD Stock: Brewing Up Growth and Value for Investors

By Levi at Elliott Wave Trader; Produced with Avi Gilburt

There’s a way to uncover the synergy between fundamentals and technicals that may be new to how you think about markets. Yes, fundamentals are key. We use them day in and day out to form investment and trading theses. Lyn Alden is simply one of the best that we have seen to synthesize key data points and filter out lower quality candidates. 

From there, we then look at the study of sentiment via crowd behavior. This is where it is likely that we will introduce to you a new way of viewing the markets. You see, many hear the term “technical analysis” and immediately imagine: trendlines, momentum indicators and the like. These are fine tools. However, there is something that must be understood and appreciated regarding the markets. 

We will share this knowledge and also how it applies to the BUD chart. Let’s dive into Lyn’s latest findings regarding fundamentals and then look at the structure of price on the charts to listen to sentiment as it speaks.

The Current Fundamental Snapshot for BUD

Lyn Alden, our lead fundamental analyst in StockWaves, shared this post a few days back regarding BUD:

“BUD continues to look rather investable from a fundamental perspective. It's reasonably valued relative to its expected growth, and with a solid balance sheet for its industry.” - Lyn Alden

We have our foundation. But, how do the masses feel about this thesis? There can be a solid investment idea but with participation from the crowds, price just will not be motivated. So we take our idea and test it against the backdrop of crowd-think.

This is likely a new idea for you. Some say it was Emerson, others Holmes, but whoever the quote belongs to, it rings true: “Man's mind, once stretched by a new idea, never regains its original dimensions.” Allow this concept into your intelligence and it may do just that.

Sentiment Speaks?

Indeed it does. How does this happen? What does it mean? One of the best explanations is from some of the extensive research conducted by Avi Gilburt regarding this very thing. An excerpt from one of his articles helps us to understand the concept. Note the following:

“In a paper entitled “Large Financial Crashes,” published in 1997 in Physica A., a publication of the European Physical Society, the authors, within their conclusions, present a nice summation for the overall herding phenomena within financial markets:

“Stock markets are fascinating structures with analogies to what is arguably the most complex dynamical system found in natural sciences, i.e., the human mind. Instead of the usual interpretation of the Efficient Market Hypothesis in which traders extract and incorporate consciously (by their action) all information contained in market prices, we propose that the market as a whole can exhibit an “emergent” behavior not shared by any of its constituents. In other words, we have in mind the process of the emergence of intelligent behavior at a macroscopic scale that individuals at the microscopic scales have no idea of. This process has been discussed in biology for instance in the animal populations such as ant colonies or in connection with the emergence of consciousness.”” - Avi Gilburt

So what is the big new idea to be introduced into your mind? Simply that individuals may consider themselves rational and reasoning creatures. But when you place them into a crowd, a different type of comportment materializes. And, many of the individuals do not even realize that they are now caught up in a wave of emotions that will whisk them to places they never thought they would journey.

That’s exactly how sentiment works. It is fear and greed in dynamic motion before our very eyes. Would you like to see how this translates into actionable intel regarding BUD stock? Let’s do it.

What Are The Crowds Thinking?

We simply study the structure of price and use mathematics. Keep in mind that the markets are fractal in nature. As well, they are variably self-similar at all degrees. This means that a smaller structure can then be used to confirm the context and project probable paths going forward.

That is what we are using to project this current scenario for BUD. Note the current Wave Setup recently shared with members in StockWaves.

We have clear parameters: either the bullish scenario is confirmed, or the setup will invalidate. At the moment, BUD is exhibiting a bullish setup with a favorable risk versus reward.

What Is Generating These Setups?

What is the methodology that produces these targets and identifies the risk vs reward? Simply put, what is at work here has always been. However, it needed to be identified and then quantified. If you can do this, then you can open your eyes to an entirely new way of looking at the markets.

Yes, there are nuances to the analysis. Once familiar with our methodology, readers discover a powerful ally on their side to provide guidance and risk management in their trading/investing.

Does this really work? We will be the first to tell you the answer to that question: “Not always”. However, we have yet to find another analysis methodology that can provide context at any moment in time for the observed market/stock. Nor have we found another tool that can dynamically adapt in real-time to the markets as this does.

Over time with a large sample size of setups, you will come to appreciate the utility of this analysis method for your trading and investing. Of course not all setups are going to play out as illustrated. That is simply the nature of dynamic markets in action. This methodology will tell you when to shift your weight and when the scenario invalidates.

So, a setup can be wrong. The opinion of the analysts may need revision. It’s OK to be wrong - just don’t stay wrong. Does your current method tell you when to adjust your view? We should be students and observers of the emotions ever present in the markets. But we don’t benefit from becoming participants in this sentiment.

There is much more education available in the articles shared with the readership as well as a plethora of resources at your disposal in our Help Section. Welcome to a whole new world.