129 [Market is getting too easy. Jun 3, 2020]

  • The rugpull is always nasty, it’s gonna be nasty but the indices could go up another 20/30% from here before it comes, so that’s what makes it so hard. That’s why it’s always easier to just follow price, and now news or opinions or whatever. It’s taken me too long to learn this, every year I get a little bit smarter, even I can learn important things eventually.
  • I actually saw an interesting chart the other day, the market valuation vs money supply (SPY/M2SL), the markets are actually historically not that expensive if you look at that indicator, there’s just so much money on the sidelines, that hasn’t anywhere else to go. This is why the market just keeps going up, even though we are probably in the worst recession since like the 30s. We have all these protests and this and that and china tensions, there’s just so much money, they don’t have anywhere else to go, where else do you keep your money, in bank accounts?
  • ZM had earnings report, just blowout numbers. I don’t think is a long or a short from here, I think it needs to build a range to either go long or short against. ZM took out orls, but they couldn’t break it down, very interesting one, maybe they’re gonna squeeze it further. I’m a little bit tempted to buy some if it takes out hod. It’s an extreme momo stock rn, everyone and their grandma around the world is using it, and this thing has been overvalued since it was in the 60s. Bought some, not usual setup buying things this extended, but we are in a special type of market and this is a special type of stock.
  • How do you adjust your trading during times of underperformance where you feel you’re not in the best stocks that are moving? That feeling is something I feel too, I was very frustrated when the market initially bounced, I was so super super cautious, and I missed out on the first big bounce in the markets. The market’s were up, a lot of stocks were up and my accounts were sideways to a little bit down, the best thing to do is take a step back and do more of what works and do less of what doesn’t work. It’s easy to start doing dumb things when you have a fomo kind of a feeling, when you feel like you’re underperforming and then you start chasing things and maybe pushing size on the wrong stuff etc.
  • INPX looks like it’s going lower, f*ck this thing I’m gonna sell all of it. I don’t like being long stocks that are going down, that’s not how I make my money. I make money being long stocks that go up, that’s the key to trading success.
  • GNUS I’m just gonna let it do it’s thing, if I’m gonna short it it’s gonna be late day, preferably this thing goes to 10/12 by tomorrow. I have no desire to get in front of a move like that, I’ve seen those moves too many times before, don’t want to do anything stupid. It is a decent short setup right here, if it loses vwap and gets rejected off vwap it could be a good r/r setup, but be aware it could go to 10/12 by tomos. Just wait for it to stop going up.
  • SOXL I got stopped out the first time around. I bought it here 157s, then it had a washout and took out lods and stopped me out, then it came back mid late day that’s when I bought it, when it took out hods, a bit before, kinda anticipated the breakout a little bit. I sold about 10/15% of my position today, could very easily go to 220 or something.
  • DFS shorted 20kshares orls, anticipated the range break a little bit. Covering half position on vwap reclaim, stop rest hod, it’s not breaking down.
  • You’re not dumb, you just lack sell rules. This is why I always trail, I’ve sold a bunch into strength, I did sell a bunch when it closed below the 10day, but I’m just trading the 20day, same thing on all of these. Stop looking at these random numbers for resistance, just trail your stops, there is no resistance it goes where it has to go, just sell some into strength and trail the rest.
  • LVGO this looks juicy, I’m gonna buy 30kshares if this thing breaks out. This is like a 5* setup, this it the kinda stock you can risk a dollar to make $20/30/40. Looks super explosive it really does. You add when it breaks out of the htf. Like it needs to start taking out yesterday’s highs at a minimum, then this 60 dollar area. Ok, took out yesterday’s highs but I’m gonna wait a little it, see if real buying comes in, ok added 14kshares to my existing 6kshares. This thing is starting to go, it’s going straight up, I’m gonna add more. Oh man, it’s getting thin here I can’t add any size, that’s a good thing btw, not being able to get the size you want at the price you want, that’s a bullish thing.
  • EP: you have an earnings beat, you have big growth numbers, you have a gap up of at least 10%, preferably 15/20%, and the stock trades it’s average volume in the first 5/10/15mins. Then again, it’s an earnings beat, rev beat, they raised guidance, the stock comes out of a long range, preferably at least 3-6months. In my opinion this is the best swing trading setup. If you can master this setup and understand this setup, when they work, when they don’t, there’s a lot of money, and it’s a very scalable setup. You can trade small caps, you can trade large caps, you can trade megacaps.
  • Flag breakout: these are also best done on high momo names, preferably that are also growth stocks, that have good earnings and good expected earnings. Like SE when I bought it here [5/5/2020], showed some big rs through the corona sell off, had a leg higher, started surfing this 10day, then it broke out of this range with above average vol, it’s a classic flag break. PDD another classic flag break, also showed some big rs during the corona sell off, then it had a leg higher, pulled back to the rising 20day, bounced off it, started stabilising, then it broke out of this little range. Then there are like TSLA, also a flag break. Had a big move, riding the 20day, hls all the way, then it breaks out on higher vol.
  • Short setups: you have an extended stock, you wait for day three, if it’s the first leg higher I usually wait for day 3/4, if it’s the second leg higher day 2/3, usually when the stocks reverse.
  • If you’re a trader, that has specific buy and sell rules, there’s just so much opportunity, there’s just so much opportunity. All you have to do is be open minded, and wait for your setups. And pretty much tune out the news, the media, opinions. I just get more and more convinced of it every single day.
  • I just do a quick calculation in my head, bc I rarely want to be overnight long any stock more than 20/25% of my account, and those are if they’re large caps, if it’s a midcap, I would never have more than 20% of my account in it overnight.


  • Best resources when looking to understand various strategies? I think my stream and my youtube are the best resources, I honestly think so. But if you’re looking for something specific to daytrading, um, well I still think my stream is the best source tbh. Like the best daytrading strategy, you really don’t need a lot of strategies, you really need like 1 or 2 bread and butter strategies to make millions.
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