212 [Solar stocks leading. Oct 16, 2020]

  • When a market gaps down into support, when a strong rising market gaps down into support, that’s generally an extremely bad time to initiate short positions. Anytime you have a rising market, gaps down into or undercuts the 10/20day, the odds are not great for you, they’re not.
  • Only stopped out of a few, sized down on some other stuff, and everything else is just fine, I got out of the weakest one, it’s like watering the flowers and pulling weeds out, that’s your job, trading is a little bit like tending to a garden, you pull the weeds and you water the flowers.
  • SPWR and SEDG bought some 1min orh. SPWR looked kinda thin so didn’t do full size. Solar stocks starting to reverse lower, the bases were too short I guess. SEDG stopped out. Stopped out SPWR also, these things looked great but yeah the 20day prob needs to catch up a little bit more.
  • PENN looks interesting, unfortunately wasn’t very tight, but did show some incredible rs during the recent pullback. Bought some orhs. Stopped out, sometimes it’s very treacherous to buy also. It’s very treacherous to buy gap ups and short gap downs. Rebought took out highs.
  • NIO, potential short setup today, if I wasn’t long I would probably. It’s a very extended stock, day 3, and now orls, got rejected on the vwap and now it’s below the vwap again, so there’s already like 2 potential entries here, this is the type of stock very good daytrading setup, that’s how I made my first million, these high probability short setups. Up close to 50% on it, sold 14kshares more so now 2/3 position left, and gonna trail not with the 10day, since its a fast moving stock, the faster moving names I’m trailing with the faster MAs. Just rejected at vwap, I wouldn’t be surprised if this pulled back to 26/27. This is the most profitable daytrading setup, when you have an extended stock, starts taking out orls, gets rejected at vwap, starts building lhs, that is the most profitable daytrading setup, it’s not even close.
  • PTON is gonna be such a juicy short, like TSLA was, when it’s time it’s gonna pullback like 30% in a few days/a week, when it’s time, it’s not time yet, but it’s just one of those trades. The higher it extends the better, it’s too bad if it just had one more days of sideways here I would have bought this breakout [18/9/2020] but I didn’t think it was tight enough. It’s not extended, the thing pretty much went sideways for two days, now it needs to either starting building on the backside or get really extended. It’s probably gonna find support here on the rising 10/20ema and then start grinding higher, but when it starts getting rejected on the 10/20ema, and they start sloping down and the 10ema starts crossing below the 20ema, that’s when I would get interested in a potential swing short. Now lost the 10ema, let’s see if it can bounce on the 20ema, again I wanna see backside on this thing, not interested in finding a top, I’d rather short it 5/10% lower.
  • When you get stocks like these [FSLY] these extreme momo stocks , they’re very very sensitive to any type of negativity, these things are usually priced for perfection, and when there are cracks in perfection these things can sell down 20/50% in a day. Like if you do the math they’re still gonna have extremely high rev growth next Q, it wasn’t like it was a big cut, but the thing is, when you have a stock up 1200% in 7/8months, that’s what happens. And we’ll see, maybe it finds support on the rising 100day, remember this thing sold off here too [Jul2020] when it guided lower bc of tiktok, had a big sell off, found support on the 50day, set up and two months later made a big big move. So this this could sell off, find support, and maybe set up again in a few weeks/months.
  • ZI, has great numbers, and actually setting up for a base here, few more days, but yeah great numbers, recent ipo, hot sector, high valuation, everything is great, if it can just go sideways for a few more days this could be a 5* setup.
  • JKS, just wow, look at the hls, this thing has institutional demand, I think this thing goes to 100, yeah surfing the 20ema. These MAs work, they show supply and demand, the 10/20/50day and also 100/200day to some extent on the daily, and the 10/20/65ems on the 60min those things work so well on momo stocks, it’s almost like cheating, that’s as close as you can come to legally cheating in the stock market.
  • Most of the best breakouts break out in the first 30mins, not all, some break out late in the day or midday, but yeah I would say most of the great ones break out the first 30mins.


  • *sniffling*, probably some kinda allergy or something, I’m allergic to bad setups.
  • David in Rocky Mountains. Spoiler alert.
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