Fully invested, no urge to do anything, gonna sit and wait today. Question is are we gonna fade this gap up or are we gonna hold it, that’s the big question.
PLL is an intriguing stock, starting to break the range on the 60min, it’s not as tight as I would like it to be though, that’s the problem with it.
PTON starting to show some rw, it’s actually red on the day, so showing first signs of weakness. I guess there was an entry on it orls, when it was obvious it was showing big rw.
Looks like most stocks in the portfolio are outperforming the market for now, TWTR hitting new highs, LAC up 13%, CRWD about to hit new highs, Z new aths. Guys if you bought any good looking breakouts over the past two weeks, you really want to see your stocks outperform the market, most of them, not all of them have to but most of them, that’s how you know you’re in the leaders, that’s how leaders act, you want to be in the strongest names, and you want them to show rs after you’ve bought them.
I would never go 200% margin in one direction, I’ve never done it, that’s way too much margin for me, I would never go more than a little bit more than 100% in any direction, and usually when I’m on margin I have both longs and shorts, and a lot of diff positions, diff sectors etc.
Momo trumps everything, but company fundamentals I want them to be fast growing stocks, most of the stocks in my portfolio have triple digit earnings and/or rev numbers, most of them are fast growing, and all of them have a lot of momo, so that’s the fundamentals I look at.
TSLA, getting excited about this big bullflag it’s in, this thing had an enormous run from the March2020 lows, pulled back to the 50day, had a big run again, pulled back to the 50day again, had a bounce again, and now it’s kinda getting tighter and tighter, man next leg up this thing is gonna go to like 600.
SE, already in, but it’s kinda building a flag on a flag setup, I like it, if this thing can tighten, maybe even starting tomos if this thing breaks out again, I may add to it, thing is really smooth, this is what a momo leader looks like, straight up, every time it pulls back finds support on the 20day, except here where it found support above the 50day. If you wanna make money these are the stocks you need to focus on, not something that’s been going sideways for a long time, this is a momo leader. Yes SE has a lot of things going for it, but you don’t even need to know what, all you need to know is that this is one of the strongest stocks in the market, and has been for the last 7 months.
Those of you with less than a couple mil, you have an enormous advantage, you have no excuses for not outperforming the market by a wide margin, you can trade these illiquid fast moving stocks. Microcaps are more volatile, you can risk 10% to make 100% in a few days, in a large cap I can risk maybe 2% to make 20%, the r/r is about the same, you get bigger moves but you also have to have wider stops.
Trading is probably one of the hardest things you’ll ever do, very few endeavours have a 99% failure rate. That’s why you have to make trading as simple as possible, tune out all of these stupid indicators and news, all these opinions, all you need to focus on is price action really, and the price action in relation to news, if something has good earnings but it goes down, what good does it do you right?
BBBY, had an enormous earnings beat, obviously the market knew about it, that’s why this stock went from like 3.50 to 15, market already sniffed it out. So the analysts expected a loss of 29c per share, instead they announced a profit of 50c per share, that’s a big beat, big big beat, that’s why the stock is going higher. Those are the scenarios you wanna look for, but ideally it would have been better if the stock didn’t have this run up into earnings, it would have been better if instead of being 15 before earnings, if it was in the 12/13s, it already had a big big run into earnings, it was up 100% in just a few months, that was the problem with this one.
FLGT looks like a very good setup, orhs was the entry, somewhere here in the mid/high 41s, gotta be on those setups. Something like this needs to be on your watchlist before the open.
My aftermarket scan takes about 10/15mins nowadays, since I only scan for the most liquid stocks, it used to take a lot longer, but my tradable universe is fairly small nowadays.
CRSP, I don’t trust it either, bc it kinda lost it’s momo, but idk it could go, the whole sector is strong so that’s why it’s up. It did an undercut of the rising 100day and now it’s breaking out, that’s actually something you want to see, a failed breakdown at a key MA and then a breakout the day after, that shows strength.
TWLO, entry was orhs friday, had very very nice volume, had a big upside guidance and beat and a good chart, one of the best momo charts, had been going sideways for about 3months or so and then it had this ep on big volume. The entry was orhs 277s, definitely sub 280, when it was obvious it was having big big volume.
EXPI was a better buy than CHWY, more momo and it’s more linear, surfing the 20day, this thing has so much more momo than CHWY, CHWY up 10% over the past 4/5months, EXPI was up almost 400% in the past 4/5months. If you have two really good setups you like, you should trade the one with the higher momo and the higher adr. You should strive to trade the biggest momo stocks.
OTRK, this one had a beautiful breakout on friday, really nice, this is a picture perfect type of a stock, had a big run, this thing quadruples in a few months, has been surfing the 20day very nicely, pulls back finds support on the 50day, starts building hls, has a tight range and breaks out. This is a picture perfect breakout, 5*.
PLUG, it had a setup here [28/9/2020], it bounced off the 50day, had a big gap up, showed a lot of rs on this day, that was a little big of a tough setup, I didn’t like the big gap up, but that’s the thing, sometimes the strongest stocks they’re just very strong, they don’t give you a perfect entry, they made you feel like you’re chasing.
Do I have a rule for number of entries in a day? Not really, just don’t over do it. Lets say I don’t have a lot of exposure, like if the market has been in a pullback for a while, then a lot of things start breaking out, I wouldn’t probably do more than 60/70/80% changes to my portfolio in a day, that would be the limit. I wouldn’t go from 20% to 100% invested in one day, but I could go maybe 20% to 90% in one day, just don’t go crazy you know, one day doesn’t make a trend, there’s plenty of time to get in usually.
If I’m fully invested and I see a really good setup would I sell down other positions? Yeah absolutely, but the new setup has to be better than what I’m already in, I would probably size down on something that hasn’t performed, or a slower mover.
I guess there was an entry on it orls, when it was obvious it was showing big rw.
LAC up 13%, 
CRWD about to hit new highs, 
Z new aths. 
Guys if you bought any good looking breakouts over the past two weeks, you really want to see your stocks outperform the market, most of them, not all of them have to but most of them, that’s how you know you’re in the leaders, that’s how leaders act, you want to be in the strongest names, and you want them to show rs after you’ve bought them.
If you wanna make money these are the stocks you need to focus on, not something that’s been going sideways for a long time, this is a momo leader. Yes SE has a lot of things going for it, but you don’t even need to know what, all you need to know is that this is one of the strongest stocks in the market, and has been for the last 7 months.
Something like this needs to be on your watchlist before the open. 
The entry was orhs 277s, definitely sub 280, when it was obvious it was having big big volume. 
CHWY up 10% over the past 4/5months, 
EXPI was up almost 400% in the past 4/5months. If you have two really good setups you like, you should trade the one with the higher momo and the higher adr. You should strive to trade the biggest momo stocks.
