Dear — Jeff Bishop here,
We saw many stocks across the board making recoveries yesterday. That even included electric vehicles, one of the most heavily shorted stock groups out there.
Small-caps, however, have lost some of their ground— and big tech is once again, large and in charge.
The QQQ has rallied over the past 5 trading sessions, whereas the IWM is down during that same period, though not by much.
Jason Bond actually believes that this year will be his best trading year ever. Register here for his State of the Market Address at 8 PM ET tonight, if you haven't already.
If you attend, you might find out how to gain first-mover advantage and uncover some of the hottest plays in the game.
In today's issue of All-Access, we'll provide some insight into how to trade the EV volatility we're seeing now, and how to manage our emotions while doing so.
Yesterday's chart of the day is NIO.
The electric vehicle sector has been extremely hot this year and NIO has been one of the main gainers in the group: the Chinese EV stock is up more than 1,000% YTD.
NIO and other similar stocks like LI and XPEV have been really in play for the past two weeks. On 11/24 NIO reached $57.2 and just 5 trading sessions later it hit $44.05.
Yesterday, after 3 consecutive days of closing in the red and a gap down on top of it, a major bounce finally came in NIO. The stock closed higher by more than 5% after being down around 12% in the pre-market.
Here's one way to trade a bounce like that:
This trade was extremely straightforward. Once the stock broke above 40, the buyers started to pour in… and that propelled the stock to go from negative to positive on the day.
The key to this trade was to recognize how overextended this stock was to the downside in the morning and wait for the first signs of reversal.
As you see on the chart above, once the stock broke above VWAP and the opening range high, it went straight up.
With the market being as hot as ever, it's crucial that you learn how to trade these bounces— this pattern has a high win rate and amazing risk-to-reward profile.
When we familiarize ourselves with these clues and it might help us make a successful bounce trade next time it comes around.
Jason Bond has his eyes on a catalyst that could cause a major bounce. Discover why there can be major stimulus once Janet Yellen takes office and how Jason plans to take advantage of it.
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It might seem very counterintuitive to buy a stock that's gapping down big, but oftentimes these setups are the easiest and quickest way to get paid.
Granted, trying to catch a falling knife is a dangerous strategy, and you have to be able to stomach the risk.
Such entries must be timed well and managed proactively— when they don't work, they can devastate an account just as quickly.
And while we're always excited for a good bounce trade, today we'll do something different and highly unusual for us at RagingBull.
We'll focus on the bigger picture idea.
In yesterday's edition of All Access, we spoke at length about the apparent deflation of overextended stocks.
As EVs are a prime example of that category, today's bounce makes short entries we have been eyeing as appealing as ever.
Today's watchlist is overextended EV names with great risk-reward setups to the short side:
NIO Inc (NIO):
Tesla Inc (TSLA):
QuantumScape (QS):
No doubt, EVs are a hot sector right now. Join Jason Bond LIVE here today to learn the 3 explosive sectors that he believes will make 2021 his absolute best trading year ever.
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Yesterday's trading action in NIO proved that the markets can be an emotional rollercoaster, especially when you decide to take a red hot car stock for a spin.
Just when we thought the stock had found a top and was ready to freefall, it's racing back up again.
We can't control the markets and there's always going to be a certain element of unpredictability in our trading.
However, there's one thing that we can do every day to keep things under control…
It has to do with trading psychology and managing our mindset.
The skill that we're talking about is exercising mindfulness while trading.
Mindfulness means paying attention to our thoughts and emotions throughout each step of the trading process.
It can guard us against the fear of missing out (FOMO), which often causes us to buy irrationally when a rally is actually over— something that we see a lot with hot stocks.
And while it's always important to respect our stop losses, it can also prevent us from panic selling— knowing that in the case of a growth stock like NIO, there is always a strong chance of a rebound.
Listen, when you have your own money on the line, the emotions run wild. Everyone manages their emotions differently, and it's up to you to figure out ways that can help you remain calm, cool, and collected.
Dave Lukas struggled with all the trading emotions around market volatility for years— until he discovered one strategy that gave him peace of mind.
The best part about it— he finds it liberating and stress-free to not have to constantly worry excessively about the direction of the markets every time he wants to trade.
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The Next Market-Moving Catalysts By Jason Bond of Jason Bond Picks
2 Best Dip Buys Right Now By JC Parets of Chart Hunter
NKLA: Well-Timed Trade, Or Did Someone Know? By Kyle Dennis of Biotech Breakouts
How I Made Nearly 100% on This One Trade By Dave Lukas of Options Profit Planner
To your success,
The RagingBullTeam | 
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