174 [Good setups are coming back! Aug 13, 2020]

  • TSLA only got in 1/3 size yesterday, bought 1300shares, now it’s going straight up. What messed up this trade, was that it had two weak days coming into the announcement, it would have been much better if they had announced it 2-3days ago bc then we would have gotten a clean break of this 1520s range. I would be in 3x the size, now I had to chase it a bit and only got 1/3 size. Would love to see a pullback to the rising 10ema on the 60min. Dying to add to it but only on a good setup, with current size not going to sell anything till like 2000. Stop is 1490s, lods too wide, if it falls back into range and loses the 20day I’ll get out, lods would be too wide of a stop bc it’s deep in the range, you still have to maintain your r/r.
  • PINS looking good, added to position yesterday, really like the undercut of the 10day and reclaim, added another 20kshares to position. To get a good setup probably needs another 3/5/10days of sideways, 20day needs to catch up a bit more.
  • A lot of China names reporting today, DAO and FUTU both really good earnings and really good estimates for the next few years, but both too illiquid for me to trade.
  • INO bought some yesterday midday, was really really tight, bought low 13s, this thing went down 40% in 3days, bounced off the rising 150day, just a reverse mean reversion short. Been selling some, think this thing could bounce back to 16/17+.
  • OSTK main watch, looks like it’s gapping up a bit but if it loses this high 87s area, this thing could easily pull back another 15/20/25% over the next few sessions. So far failing on the declining 65ema on the 60min, but still above the 10day so could go sideways, needs to break this trendline here for me to add to short, probably not gonna get there today maybe tomos.
  • IGC starter short, stopped out. Missed the re entry, maybe on pops will try get some, bc not gonna do any big size on this. Got filled on some shares on pop. It’s just a random pump, there’s no reason for this thing to go up 600% on this news, they got an FDA approval to initiate cannabinoid study, that study is probably gonna burn tens, hundreds of millions and take many years, if anything the stock should be going down on it, and they’re probably doing an offering soon. But technically, this thing is up a lot two days in a row, I never short on day one, but day 2-3 is usually when stocks can fade hard, but it’s not a high conviction setup, it would be better if it closes strong today and goes to $7/8 tomos, that would be a high conviction trade.
  • BE bought 40kshares. Already half of the avg volume. BE is straight up, up 9% from entry, selling tiny here. You guys shouldn’t sell any, you should sell after 3-5days then have a trailing stop, I trade a little bit differently bc I have a bigger account and I need to kind of be selling when there are buyers, or I may get in trouble on some of those names. Yes even after a 10% move, bc look at ADR on this thing 10.4%, this is a normal move for this stock, this is why you should be in high ADR stocks, this is how you aggressively build your accounts, you’re not gonna get these kinda moves buying some pos slow stock. BE wasn’t in any of my scans, it’s one on my watchlists, Fuel Cell sector I’m tracking these stocks specifically.
  • TDOC bought 1100shares, this thing tends to pullback to the 50/100day then bounce, this is not a great breakout stock, it’s more of a pullback stock. Should have maybe bought LVGO instead, has higher ADR and it’s kinda stronger too; LVGO is at the 20day, TDOC is at the 100day, (they’re merging so they trade exactly the same, if one’s gonna go up the other’s gonna go up.) This is a position trade for me, a multi month trade. TDOC straight up, nice.
  • CWH looks like a decent setup, surfing the 20day for many months, now surfing above the 50day building hls, starting to take out this range.
  • SVM this is a really good setup, rn it’s maybe a 4*, but if it goes sideways just one more day puts in a tight range, this is a really good setup, look at how linear and clean it is, been surfing the 20day, now it puts in a tight range, building hls, while silver has been pulling back.
  • SHLL looks very intriguing, very thing stock but it’s been relentlessly building hls, now look how tight this thing is between the 10/20day and now it’s breaking out of this range. This could be a really good setup, I like how relentlessly it’s been building hls above the 50day, super tight. SHLL this is the reason you trade high ADR stocks, already up 13% on the day, up about twice the ADR. This is how stocks move, you have a period of volatility, you have a period of tightness and you gotta buy it when it breaks out of that tightness, and you get a period of volatility again.
  • GRWG has some good numbers, this thing has had triple digit rev growth for at least 2 years, it’s an old cannabis pump. Very thin though.
  • GOOGL breaking out, been surfing the 50day, now this is obv an ultra slow stock but it’s a good sign for the overall markets that we have these megacaps trying to breakout, GOOGL, AMZN.
  • These solar names are just so relentless, look at TAN two really good setups on Solar ETF, slow ADR but just to illustrate.
  • Momo strategies work in every market, they work in every asset class, and they have been for two hundred years.
  • GBTC starting to setup for next week, I’m long 57.5kshares, but if we get another 3-5days sideways and the 20day catches up and we get another breakout, I’ll double up, if BTC keeps going this will go to $20/30.
  • BVXV had two really good 5* setups, here, and another continuation setup, put these in your database.
  • FSLY just bought 30kshares, kinda anticipated the intraday breakout, it undercut the 50day, two days it built hls, tight range, now it’s reclaiming the 50day.
  • You gotta be on these things, if you want a good risk reward you gotta be early, see a good setup you gotta buy it soon as it starts breaking. Some setups are a little bit tricky, so I kinda hesitate, I want them to prove themselves, but some stocks, soon as they break I just buy, I don’t second guess, I just buy, and if it doesn’t work it doesn’t work. Those are the names usually that make big moves.
  • SPAQ reminds me a little of SHLL, same sector, could work, but it needs to start taking out that mid/high 12 area, surfing the 50day, made a huge move, pulled back, now it had an orderly pullback to the rising 50day, similar to SHLL. Could be good.
  • Jesse Livermore’s trading rules.
    1. Nothing new ever occurs in the business of speculating or investing in securities and commodities.
    (exactly, it’s human nature, the same things over and over again, the only things that change are the companies and the people and the products.)
    2. Money cannot consistently be made trading every day or every week during the year. (You gotta wait for those setups, you can’t be trading everyday.)
    3. Don’t trust your own opinion and back your judgment until the action of the market itself confirms your opinion. (Your opinions are sh*t, and the less money in your trading accounts, the more sh*t your opinions are. Opinions don’t matter, you have to trade the price action.)
    4. Markets are never wrong – opinions often are. (I’ve experienced it too many times in my life, every year I’m trading less on my opinions and more on price action.)
    5. The real money made in speculating has been in commitments showing in profit right from the start. (That’s also my observation, usually when you buy a stock and it keeps going straight up, those are usually the best ones, you don’t want the stock to pull back.)
    6. As long as a stock is acting right, and the market is right, do not be in a hurry to take profits. (That’s why you need to be using a trailing stop, bc you never know how high a stock can go from entry.)
    7. One should never permit speculative ventures to run into investments. (You should obey your stops, if you get stopped out you get stopped out, you don’t start rationalising stuff, if you get stopped out you stop yourself out, no second guessing).
    8. The money lost by speculation alone is small compared with the gigantic sums lost by so-called investors who have let their investments ride. (This was written after the great depression, a lot of people lost everything, the markets went down 90% from 1929-1932, so he kinda didn’t believe in buy and hold investing.)
    9. Never buy a stock because it has had a big decline from its previous high. (Just bc a stock has gone down a lot doesn’t make it cheap, you shouldn’t just randomly dip buy stuff, only on good setups.)
    10. Never sell a stock because it seems high-priced. (Valuations don’t matter in momo trading, use trailing stops.)
    11. I become a buyer as soon as a stock makes a new high on its movement after having had a normal reaction. (Normal reaction is pretty much a pullback in a rising trend, then he buys the breakout to new highs.)
    12. Never average losses. (If you buy something and it goes down, you don’t buy more, you don’t average down. Or if you short something and it keeps going higher. You only add to winners.)
    13. The human side of every person is the greatest enemy of the average investor or speculator. (You need to have a specific method or strategy, you can’t let emotion dictate your trading or investing, you need to have a specific ruleset. You will never get rid of emotions, emotions are always gonna be there and that’s fine, but you can’t let your emotions dictate what you’re gonna do.)
    14. Wishful thinking must be banished. (You have to follow price.)
    15. Big movements take time to develop. (This is what I realised back in 2013/2014 a couple of years after I started trading, I just looked at a bunch of charts, something I traded, I’m looking at the chart a couple of months later and the stock is up 100/200% and I’m like why did I have to daytrade it, If I’d just held it right, so I realised I had to find a method or system to trade stocks and hold them for longer, bc big moves don’t usually happen in a day, they take weeks and months to develop. That’s when I started researching swingtrading, I found Stockbee. I’m very thankful I realised it early, like why am I daytrading for tiny moves when you can hold for longer and get big moves.)
    16. It is not good to be too curious about all the reasons behind price movements. (Usually what you think is moving a stock, it may not be that thing moving the stock, no matter what the media says or anyone says. We always try to rationalise movements, at the end of the day it’s all supply and demand.)
    17. It is much easier to watch a few than many. (Better to focus on the best setups, if you have 5 5* setups there’s no reason to watch any 4* setups, it’s all about focussing on a few of the best.)
    18. If you cannot make money out of the leading active issues, you are not going to make money out of the stock market as a whole. (If you can’t make money on the momo leaders, you’re not gonna make money out of the stock market as a whole, this is why you focus on the momo leaders.)
    19. The leaders of today may not be the leaders of two years from now. (The leaders are constantly changing, very few stocks remain leaders for several years in a row. There are some extreme examples but usually most stocks are maybe leaders for a year or two and then they won’t ever be a leader again.)
    20. Do not become completely bearish or bullish on the whole market because one stock in some particular group has plainly reversed its course from the general trend. (Don’t base your market analysis on one stock, you gotta look at the big picture, what are most stocks doing, or most of the leaders, what are the leaders doing.)
    21. Few people ever make money on tips. Beware of inside information. If there was easy money lying around, no one would be forcing it into your pocket. (That smart friend of yours probably has no idea what he is doing.)


  • Livermore’s granddaughter is in an interesting business. What? Brandi Love, is Jesse Livermore’s granddaughter? No way. Supposedly, ok, I guess the family money is gone. Awesome.
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