Don't get me wrong, I love spending time with my family.
Little Nate turned out to be mean grilling machine
But obsessive traders like myself can often experience market withdrawal when they step away from the screens.
In fact, while we were on our trip, I got up early a few times, before anyone saw me, checked in the markets, and fired off my trading plans for my LottoX members.
Overall, it turned out to be a pretty solid week.
My favorite was a quick trade on Fastly (FSLY) calls - scooping them up after its first bullish daily close since earnings.
Now that I'm back in the saddle, I sat down and pulled out my favorite trades for the upcoming week.
And let me tell you...there are some beauties here.
Overstock (OSTK) - 10% Short Float
The comeback stock of 2020 has to be Overstock.
At the March lows, shares were below $3.
With a CEO who wasn't helping, I thought the stock was done for.
$90 later, I stand corrected.
Crazy as it may sound, there are still a huge amount of folks shorting this stock.
10% of their tradeable shares are sold short, leaving room for an epic short squeeze.
But does it have the classic Nathan Bear TPS setup?
You bet it does!
OSTK 30-Minute Chart
As a quick refresher, let me go over the three components of the TPS setup.
EstablishedTREND - My strategy works best with stocks in a firm uptrend. While price pulled back in the short term, when you look at the bigger picture, there's a clear bullish bias.
ConsolidationPATTERN - When price starts moving sideways in a contracting channel, it forms a chart consolidation pattern. Connecting the highs and lows of the candlesticks, you can see how the lines converge on one another.
SQUEEZE - My secret ingredient, the squeeze happens with the Bollinger Bands move inside the Keltner Channel indicator (notes by the red dots at the bottom of the chart). This tells me timing is right for a potentially explosive move.
When I put all these pieces together it creates a great setup with enormous potential.
Since I'm looking at the 30-minute chart, I'd look at options going out one to two weeks for the trade. Anything more wouldn't give me enough directional exposure.
I like the high short float as it offers a potential short squeeze.
Short squeezes occur when you have a lot of traders that sold the stock short on margin (borrowed from the broker). They're forced to buy back shares to cover their position, sending price higher in a cascade effect.
ServiceNow (NOW) - 3% Short Float
This is such a beautiful chart.
I already held positions in this over the past week and want to add to them.
Why am I so bullish on this stock?
Take a look at the chart.
NOW 130-Minute Chart
This is about as classic of a chart pattern as you get.
You can see the TPS setup drawn out on the chart.
There's a nice steady uptrend on this one as opposed to a sharp move higher.
The chart consolidation is pretty obvious with the trendlines connecting the highs and lows or the candlesticks. I like how they're converging which tells me the price channel is narrowing.
And of course, there's a squeeze as noted by the red dots at the bottom. It's a great timing indicator which is critical for options trades.
Facebook (FB) - 1% Short Float
Tech has been in extremely strong sector, with the Nasdaq up over 20% year-to-date.
With strong results that exceeded analyst expectations, the stock broke out higher on their earnings announcement.
That creates a beautiful TPS setup worth taking a look at.
FB Hourly Chart
What I like about this stock is if technology continues its epic run, Facebook should benefit.
That gives it a potential 'double' boost.
I'd look for the stock to take a run at the recent highs, which would be a beautiful reward.
If the stock shows a solid bearish move, I'd stop out of the trade.
Education station
Learning how to read the tea leaves of the market isn't some mystical science.
DISCLAIMER: To more fully understand any Ragingbull.com, LLC ("RagingBull") subscription, website,application or other service ("Services"), please review our full disclaimer located at https://ragingbull.com/disclaimer.
FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. AnyRagingBull Service offered is for educational and informational purposes only and should NOT beconstrued as a securities-related offer or solicitation, or be relied upon as personalizedinvestment advice. RagingBull strongly recommends you consult a licensed or registered professional before making any investment decision.
RESULTS PRESENTED NOT TYPICAL OR VERIFIED. RagingBull Services may contain information regarding the historical trading performance of RagingBull owners or employees, and/or testimonials of non-employees depicting profitability that are believed to be true based on the representations of the persons voluntarily providing the testimonial. However, subscribers' trading results have NOT been tracked or verified and past performance is not necessarily indicative of future results, and the results presented in this communication are NOT TYPICAL. Actual results will vary widely given a variety of factors such as experience, skill, risk mitigation practices, market dynamics and the amount of capital deployed. Investing in securities is speculative and carries a high degree of risk; you may lose some, all, or possibly more than your original investment.
RAGINGBULL IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER. Neither RagingBull nor any of its owners or employees is registered as a securities broker-dealer, broker, investment advisor(IA), or IA representative with the U.S. Securities and Exchange Commission, any state securitiesregulatory authority, or any self-regulatory organization.
WE MAY HOLD SECURITIES DISCUSSED. RagingBull has not been paid directly or indirectly by the issuer of any security mentioned in the Services. However, Ragingbull.com, LLC, its owners, and itsemployees may purchase, sell, or hold long or short positions in securities of the companies mentioned inthis communication.
If you have a current active subscription with Weekly Money Multiplier you will need to go to your subscriptions list inside the RagingBull Dashboard if you want to cancel your subscription. Opting out of emails does not remove you from your service at WeeklyMoneyMultipler.com.
Tidak ada komentar:
Posting Komentar