172 [Sector rotation from leaders to laggards today – Swing Trading School last 55 minutes. Aug 10, 2020]

  • GSX got shaken out first on initial position. First shorted here, then added as it broke down below vwap, then it had this big big push, I got stopped out here like 138 area. Then it just faded back below vwap, I started adding back, then it just absolutely tanked, I went from down 100k to up 400k on it. Still have about 1/3 left [7kshares]. Think could fade back to sub 90 over coming week or so, hopefully get bounce back to 115/120 first multiday bounce, then get another leg down. Want this thing to build a range here low 100s, then hopefully tomorrow we get a leg lower, looking to add. Covered tiny GSX in 98s area.
  • OSTK, think this is gonna eventually do what GSX did, 30% down day, eventually pullback to rising 10/20day, question is how high will it go first, 120, 150.. Have starter from Friday, 105.40 avg, 14kshares, but will 2/3x position once it starts confirming on downside. Added another 14kshares orls. OSTK building a range on the 60min, if it breaks out of this range I’m gonna cover, and if it starts breaking below this range I’ll add more to my short, hopefully we get a few more candles in this range.
  • TSLA held some short overnight, wanna see if these 10/20ema on 60min are starting to act as resistance areas, is it gonna break lower or reclaim the range, if it reclaims 1480 area will just cover. Added orls a little and just using a very tight stop on those shares. That’s great with TSLA, you can do these partial sizes and use a tight stop on all those sizes, once it starts moving just add add add. TSLA took out Friday’s lows, now it’s on kinda backside, broke below this range and now these emas are gonna act as resistance areas, so every time it rallies back into these resistance areas it’s supposed to sell off, and if it doesn’t and it starts reclaiming that’s when you cover.
  • ALT, this is a good setup, I think if it can have an inside day today, had a pretty wide day friday, if it can go sideways today build some hls, then this thing could be a 5* setup tomos. This is a htf, made a big move, this is a momo leader, ADR is 15%, not a lot of stocks have ADRs that high, usually when ADR is this high, it means the stock has made a big move, which this thing has. Tomos if it starts breaking that low/mid 28 range I’m gonna watch it, today I’m gonna ignore it, just too thin.
  • MELI, reported just incredible earnings, like the AMZN of SA without the cloud stuff, they have payments, e-commerce etc. Just incredible earnings [258/61] but it’s not a good setup here, very extended, needs to pullback go sideways for at least a few weeks at least. Earnings are great, is a lc momo leader, gonna watch very closely in the coming weeks and months. For now selling off on earnings but still holding the rising 10day.
  • TTOO, looks decent, made a big move, keeps surfing the 20day, has been going sideways for about a month or two, building hls, and it’s the hottest sector corona, high ADR 9.3%, could be a good one this is a stock which could easily go up 50/100% if it starts breaking out on volume. If it starts breaking the high 1.70/low 180 area on big volume, that’s something to watch absolutely.
  • MARA digested the offering great, both MARA and RIOT look like wanna go higher.
  • WKHS, stopped out late day friday of last shares. Had this washout, took out Thur lows, looked like it was gonna lose the 20day, closed weak. Then I saw a big gap down premarket, looks like it wants to breakdown, looks like the next move is gonna be the 50day, 25% lower.
  • SPG bought 31kshares, I’m thinking all of these bottom stocks are going, o&g, cruiselines, airlines, this is just like sector momo. On the weekly chart looks pretty good, been building hls, has this tight tight range. Just a variation of the same thing.
  • JMIA I sold a bunch when it went up then I sold my last shares when it went red on this day here, just bc it got really extended, this thing was like 60% above the 10day, so I wasn’t gonna trail it with the 10day. That’s something I do often, if I feel a stock is really extended I’m not even gonna trail it with the MAs, but a lot of times it’s a mistake.
  • Swingtrading school. Biggest 6 month gainers, with 6% ADR 5M dollar vol.
  • APPS, this is like a 5.5* setup on a 5* scale [30/7/2020], this is such a good one, makes a big move, goes sideways, surfs the 20day, kinda loses the 20day here but still building hls, then you have this tight range, high volume breakout.
  • CAR, makes a big move, pulls back, kinda goes sideways for a couple of months, so it kinda starts building hls, gets tight in a range, then it’s the first bounce off the 50day, undercuts it, builds a tight range then it has a breakout day. This is a potential setup, anytime you have a clean bounce off one of these 3 MAs, that’s a nice thing.
  • CELH has a couple of nice setups, one is here, makes a big move, surfs on the 10/20day, starts building hls on the 20day, takes out this tight range, nice little htf. This one is maybe a 3* setup, I would have preferred a few more days of sideways, but it keeps building these hls, has two tight candles then it has a breakout day here. Then there is a great setup here, I’d recommend you never buy stocks within a couple of days of earnings, this is a 4.5* setup, look how cleanly it bounces off the 20day, then it has this tight range here, keeps building hls, but it’s the day before earnings so you shouldn’t have bought it.
  • CLSK, this is a maybe setup, makes a big move, pulls back goes sideways, starts building hls on the 10day and has a range, then it has a breakout, pretty decent setup, but I’d have preferred if this day had been a tight range day instead of a wide range day.
  • CODX, this one here is a 6* setup on a 5* scale, makes a big move, then it is kinda choppy in this range but it gets tighter and tighter, builds hls, goes from surfing the 10day to surfing the 20day, has this range that gets tighter and tighter, has a really narrow range day the day before, then it breaks out on high volume, perfect perfect setup. Then it has another good one here, would have preferred if this was a tight range day, but it’s like a htf, makes a big move, bounces off the 50day, look at how it surfs the 50day, then it starts surfing the 10/20day, builds hls, has this clean range, it’s a variation. This is another one, but I sold in anticipation of lower, then I rebought it this day, chased the chase, still in it about 1/4 shares, sold most into strength, made a big move 50% in a couple of weeks.
  • CVNA, big move, surfs the 20day, starts getting tighter and tighter, builds a range, hls, 3 tight range candles, then a breakout. Look at this thing makes a huge move, 300% move then it breaks out. You want to be in the fastest moving stocks, low ADR is equal to sh*t, high ADR is equal to gold. Here’s another good setup, same theme; big move, pullback or sideways consolidation, then stock starts finding support and surfing one of the MAs, could be the 10/20/50day, many times it’s a combination of all or two of them, but usually the 10/20day, and then it gets tighter and breaks out of that range. It’s just the same theme over and over again, this is how stocks move, this is how stocks have moved over the past 100 years, you do the same thing over and over again, you just need to memorise these patterns.
  • CZR really good setup back in Apr, big move goes up more than 200%, pulls back, finds support on the rising 20day, builds a tight range, then it has a high volume breakout, this is like a 5* setup, memorise this, this is where millions are made.
  • INO, here was a really good setup but it didn’t have any follow through. Here was a really good setup, makes a big move, pulls back, finds support on the 20day, builds hls, has this tight range, then it breaks out, 5* setup. Here was also a setup, the first bounce off the 50day, builds some tight candles, then it has a breakout candle. This is what you need, finds support on 10/20/50day, starts either building hls or has like an undercut and reclaim, then breaks out of a tight multi day or multi week range.
  • NLS had several good setups, here, here and here.
  • NVAX, perfect setup right here, and if you’d followed the sell rules you would still be in the stock, you’d be up 260% on the rest of your position. This is why I advocate trailing some of your shares on the 10day, bc sometimes you catch something like this and these are really gonna add to the bottom lines in your accounts, you catch a few of these every now and then, oh man, these are the ones that are gonna grow your account exponentially.
  • OPK, this wasn’t that clean of a setup, bit choppy, was surfing the 20day, then the 50day, built hls for several months, then it started getting tighter. This was a corona stock, when you have sector momo, if it’s a leading sector, the setup doesn’t have to be like really really good, it’s okay to have a 3.5/4* setup, it still counts like a 5* setup, bc if everything is running in a sector there is increased probability of success. So this was a decent setup if you put it in the context that it’s in the strongest sector in the stock market for the past 3/4months. Here’s another, this is 5* really perfect setup.
  • OSTK had some really good setups along the way, this is a really good setup and this is a really good setup. This thing is up 300% from this trigger right here, these are the ones that are gonna grow your accounts.
  • PENN, here was a good setup but didn’t have much follow through. Then it had a good setup here too but would have stopped you out. Here was kind of a decent setup, what it did, made a big move, went sideways, bounced off the 50day, build hls off the 50day, then it kinda gapped up took out this range here. So it’s not as obvious of a setup but there is a setup here. There was a secondary setup here but would have stopped you out.
  • PLUG really good setup here, sometimes stocks gap up over their entry, but you can still have a tight stop on it if you do orhs, if you’re ready to buy.
  • RUN had a decent setup here, I would have preferred a few more days of sideways personally, but you have a clean bounce off the rising 20day, this is a big momo leader.
  • PRTS, this is a 7* setup on a 5* scale, big big move, goes sideways, builds a tight range, look at how tight it gets look at this thing, breaks out and boom. 7* setup on a 5* scale, memorise this. Stocks moves like stairs, leg higher, sideways, leg higher, sideways, leg higher, sideways, we’re trying to identify the areas where the next step higher could be formed, we’re looking for tight areas so we can get a tight stop, so we can get a good r/r.
  • DFS had a really good setup here, this was a 5* setup, just incredible setup, makes a big move, pulls back, finds support on the rising 20day, reclaims, starts riding it, hls, then this big big tight range, then it gaps up on volume, orhs this day was the entry. Look at this thing, boom +55% in a couple of weeks.
  • QUMU, this is an ultra illiquid stock, only for those with tiny accounts, this is a 5*, this is a very good looking setup, look how beautifully it’s surfing the 20day, building hls and tight tight range.
  • RPAY, no it’s too choppy. It was trending nicely, then it kinda lost the momo, you know, lost the 50day, it’s not a good setup, it got sluggish. It should firmly hold above the 10/20/50day, but it kinda broke down and now it bounced back and there’s nothing here.
  • SRNE, sometimes you’re gonna catch a beast. These are the trades I live for, looks like a regular trade, then it doubles, maybe even triples. I’m addicted to trades like these, it’s just a great feeling when you catch something like this, just an awesome feeling.

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