153 [Tech and software stocks in melt-up mode! Will there be some reversals soon? Jul 13, 2020]

  • TSLA sold a little premarket, up like 650k on it since switched from short to long, one of best trades ever made. I’m not gonna get in front of this, I want a full up day before I start stalking for a short. TSLA gonna use the 10ema 60min as guide for selling. If you’re not selling partials into strength you’re playing with fire. Man this thing is just straight up, if it goes to 1800 gonna be my biggest long trade ever. I think TSLA will be an insanely good short swing trade. Aw now it’s confirming below vwap, this is so hard, but it could very easily just reverse here and go higher, what if I sell here, go short, and then it just stops me out and goes higher without me, no I’m gonna use lods as stop. It’s very hard holding extended stocks, that’s why I sell so many too early, not gonna make the same mistake with TSLA.
  • FSLY did sell half when it took out intraday lows, when it broke below and confirmed breakdown below rising 20ema, just to lock in this very extended name.
  • This is why it’s so important to trail with the 10/20day, bc you never know how high these things can go in a bullmarket. It’s all about the tailends, getting these homerun trades when you’re swing and position trading.
  • LVGO sold everything Friday when it broke below and confirmed breakdown below rising 10ema 60min, it reclaimed immediately now it’s gapping higher, but could be on short watch.
  • FAS and TNA main watches on long side, maybe we can get a laggard run in some of these sh*ttier sectors like smallcaps and financials, also watching SAVE, RCL, NCLH cruiselines, maybe we get a mini rotation into the beaten down names from the growth names. Right now airlines and cruiselines got rejected, they tried to breakout of these bottom channels, but I’m watching these things, they look great on the weekly.
  • WIMI didn’t trade, had a perfect breakout on 60min, 8.45 area, then omg went to 39 in premarket. Perfect breakout. Halted up, in a lockout rally mode, gonna get halted again. Lockout rally, means it’s just going straight up gets halted, straight up gets halted. Gonna be a big one, unless you’re too early you will blow up on this thing. Shorted 1/4 size, downhalted, looking to add more. Came all the way back up, looking for some kinda rejection here, lhs and rejection, but it could easily keep going to 50 today. Stopped out 65k loss. Building lhs, then lost vwap flush, shorted 30kshares.
  • NIO bought 100kshares, this thing looks like TSLA, breakout out on 60min. Sympathy to TSLA. Straight up from entry. SPCE going, AMD going, you can pretty much buy anything it doesn’t even matter. Crazy market. Selling 10% NIO into initial strength.
  • VXRT, long 9.06 avg 80kshares, looks really good, this is a momo leader. Raising stop, if it goes lods it has failed a long time ago. Up 6/7%, gonna sell some into push, could easily go back to mid teens, but gotta lock some into pushes. Sold small 3kshares.
  • Market breadth is really bad rn, the amount of stocks going higher is getting fewer and fewer. Think we’re gonna get a hard market pullback, unless we get a new sector pulling the market higher, but rn just a very very thin market in the amount of stocks going higher. Pretty much the covid names, fuel cell/electric names and some of the software names, that’s it, outside of that not a lot of sectors going higher.
  • TQQQ stalking for a swing short, is getting to levels where it could easily pullback 15/20% [10/20day].
  • Easy to start becoming euphoric, I’m scared out of my mind here, bc if the market pulls back hard I’m gonna give back a load of open profits, I just want us to keep grinding higher so I can keep selling into strength. TSLA main one here, even though I sold down a bunch, still have almost as big a position as when I bought it 4M, it is stressful it is, that’s why you need to have specific levels and a specific game plan for every single scenario that could happen. You have to be in full control, bc once you let emotions take over you’re done, not gonna last in this business.
  • Everything is holding the rising trendlines, there’s no reason to go cash rn, it’s when we start violating, unless you sell into strength, there’s just no reason to sell these things rn. Let the charts tell you, that’s pretty much what I’m doing when I scroll all these charts, I’m listening, what are they charts trying to tell me? I really don’t have any hard set rules about selling into strength, it’s all about gut feeling, it’s all about selling down to a point where you’re fine if the stock pulls back.
  • AAPl, GOOGL, AMZN, these megacap stocks, these things have doubled since the march lows. AMZN has added 800B in marketcap, that’s 3x TSLA market cap, I think we are getting to some very dangerous levels in the markets, like if you see candles like this on megacap stocks [monthly para], I don’t think the next 3-6months are gonna be that great in the markets tbh. Its only the minority of stocks that have driven all market returns for the past 50/100years, and our job as traders is to be in those stocks, that’s why I’m always telling you guys, get in the momo leaders, don’t even bother with anything else, that’s where the money is. There’s a lot of random stocks that look good, like GPRO, looks good sure but it’s not a momo leader this is not where you make the big money. Yeah sure if the market goes up this thing goes up, but it’s a big laggard, you don’t wanna be in laggards that are not momo leaders. You’ve gotta understand what is a momo leader and what is not. Any given timeframe, say a month, 6months, a year, 2 years, the top 1/2% of stocks, those are the momo leaders. Generally momo leaders are mid/large cap stocks. Small caps you want something like VXRT, this thing went up 400% in a few days, then it pulled back went sideways a little bit, now it’s breaking out again, this is a momo leader. GPRO another smallcap stock, this thing went up 170% took several months, went sideways for a few months, kinda sloppy chart, this is why I bought VXRT and not something like GPRO. Focus on the top 100 liquid momo stocks, you don’t have to look at anything else. That’s where you get the best longs and shorts. It took me so long to learn this, I’m ashamed it took me like 7/8 years for me to realise it. I was also all over the place for years, you think something looks good but if it’s not a momo leader it’s probably a waste of time.
  • Good place to learn? My stream, my youtube and my twitter, very easy. I’m not even ironic, the stuff that’s out there, especially these daytrading rooms, they’re so crappy most of them. You wanna make big money and build a good trading foundation, I think swingtrading is the way to go.
  • The setup on BNTX; it’s a gapper, it’s a theme stock, it’s a momo leader, it’s in the hottest theme in the market rn corona, all of these stocks INO, NVAX, VXRT, MRNA, all same theme all momo leaders. So BNTX today, another pr with PFE. It’s a combination of news and chart, but obv I’m long this thing since it broke out high 50s, I only added.
  • Sectors tend to run as groups. You have one stock getting hot in a sector, and then they start chasing all the others. Good example is the EV sector, TSLA is obv the leader, then you have all these stocks that get pumped, none of these stocks would have made big moves if it wasn’t for TSLA making a big move. And then you start getting one that runs, then they start pumping some other thing, then there’s a third stock starts running, then the first stock pulls back, then the second stock pulls back, then they find a fourth stock to run.
  • The buyout of VSLR started a big run solar stocks; RUN, SEDG, ENPH, FSLR, CSIQ, DQ, JKS.
  • MRNA perfect flag pattern, memorise this pattern. Hot sector, momo leader and a perfect chart pattern, look at the weekly on this thing, then it started breakout out this 66/67 area, gotta memorise these things, that’s why you need to spend 1000hours+ studying setups, then you won’t be missing stuff like this, you will have conviction and you will have focus. You will learn how to focus on the best ones, and ignore everything else. My entry was last week I bought it here [9/7/2020], when it broke out of this little mini range. Broke below the 50day, then it put in this wick here and started building hls, then it reclaimed the 50day and broke out here, that’s when I bought it.


  • Equity curve.
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