217 [Mild bull market pullback so far – positive signs emerging! Oct 27, 2020]

  • TSLA it is kinda bullish, it’s not really breaking down below the 50day and it’s building hls, so for now it’s kinda bullish price action on TSLA, good chance I get stopped out at the open. Stopped out for about b/e, and now we wait.
  • Right now this is not really a breakout type of a market, it’s the type of market where bases are built, but that’s fine, let the crazy people churn their money, let them blow up and when the times get good again we’ll be there to capitalise, next time we have a nice run in the markets we’re gonna 2/3x our money.
  • How do I know the market is strong or weak? You can just see, for eg QQQs you can see these lower highs, so everytime the market rallies it gets slammed down, but usually what you wanna see in a good market you see hls, like we had here Apr-Mar, Jun-Jul, Aug-Sep, hls, everytime the market dips it finds support, rn we’re in a mode where everytime it starts to rally it finds resistance. And you can also clearly see breakouts are failing, not following through and all that stuff. Once QQQs can get above this trendline and hold, that’s the green light. I’m starting to get a little bit more bullish on the markets bc we had this washout yesterday below the 50day and it closed very strong, same thing with the SPYs.
  • EXAS, I did buy some of this, it’s an ep and they also bought a company, I only got very small shares, not even 1/10th position, it’s a thin stock, if it dips a little bit gonna try to fill more, it’s taking out this long range.
  • SNAP, still annoyed I missed it, that one was such a perfect one, I saw the huge volume out of the gate I still didn’t buy it. SNAP had a great short setup yesterday, for a daytrader that’s like the profitable daytrading setup, when you have an extended stock that’s up multiple days in a row, you can skin those several ways, you can do orls, you can wait for the first red 5min candle, vwap fails, stuff like that. Yesterday was the fourth day, and it also had a big move, kinda grinded higher then it started speeding up, when you get this kinda action you wait for the 3rd/4th day, you have to wait for the overextension, and then you look for these weaknesses, lhs, vwap fails.
  • AYX, in a good market I would be all over this thing, or maybe not it’s kinda thin stock.
  • PENN, gets rejected every time it hits the 20ema on the 60min, looks like it wants to test the rising 100day which is like 15% lower, it can’t rally for now.
  • SE, tempted by this one, it’s such a strong name, this thing just can’t go down. Couldn’t resist [bought some orhs]. The indices look overall okay, we’re having just a normal bullmarket pullback, but if I see something really really good I can’t resist, I need to trade it, but it’s literally the only stock that looks good rn on the long side, that’s never a good sign when you have only one good setup.
  • You can see the ones that held up, the ones that didn’t sell off in the recent pullback over the past 2/3weeks, these are the ones that are going today, VEEV, SE, TCEHY, EXAS, those are the ones going, that’s why you pay attention to the stocks that don’t sell off in a pullback, that’s why you pay attention to the strongest ones.
  • NIO just stopped me out, this is what strong stocks do, they hold up really well in the correction, then when the correction is about to end they just shoot up, but sometimes the ones that look the strongest are the ones that are gonna go down the most, so you never know, that’s why I also short the leaders, when the market looks like it’s softening up. Bc if the market correction had kept going for a while, the market was weaker, this NIO could easily have pulled back to 20, that’s the thing you never know, but that’s why you need to keep doing trades, bc if you don’t trade you’ll never have any wins, if you don’t have any losses you’re also not gonna have any wins.
  • PLTR broke out yesterday, some of these recent ipos have been working kinda well.
  • DXCM, they report after close, stuff like DXCM this thing has been going sideways for what 6months, if this thing can breakout above this 420 area on earnings, it could be like a 5* ep, this thing could go to 550/600 on that. There’s a lot of these momo stocks that have been going sideways for 2/3/4months, some of them even longer, that have earnings this week or next week.
  • ZM there could be a potential short setup coming up in the next few days, if it loses the 20day, but rn now.
  • KXIN it is flagging, this thing went up on no news from what I remember, but yeah it’s kinda flagging, if it starts breaking this 5 range if it can tighten up a bit more, if you’re fast you can def trade it.
  • JMIA, had a short setup yesterday, like if you have an extended stock, it had one leg higher, then had a second leg higher, then a third leg higher, and yesterday was the third day of the third leg, that’s a classic short setup; orls, lhs, vwap rejection etc, you had all of these yesterday. It had a little of a pop out of the gate, then it started building lhs, lost vwap, then kinda failed at vwap, it was a decent swing entry but it wasn’t really extended enough for me, percentage wise this was only 117%, it wasn’t as extended as it was here [Jul2020] this was really a 5* setup.
  • HOG, they had a pretty decent beat, reported better than expected. Not my kinda ep, I prefer to do growth stocks but these types can work too, when you have kinda crappy numbers, falling rev stuff like that but it kinda still beats analyst expectations, and it wasn’t like beaten down, had gone sideways for like 6/7months, these types work. That’s earnings gappers, it’s the same setup over and over, so far this earnings season we had four good ones, ALGN, SNAP, BBBY, also EXAS could be a good one. LKIN this one was below the MAs, got rejected off the 50day, you want the ones that kinda gap up above the MAs, so they have some free air, I would avoid these ones. Sometimes I buy PM or AH, but I usually wait for orhs.
  • SRRK, look at this thing, if you’re young and fast and hungry you can catch these things, what was the news phase-2, I kinda ignore these smallercap names but if you’re fast you can catch these, if you’d bought it orhs you’d be up 40%, not bad for an hour ten work.
  • Biotech data can be some of the best eps. Last time I had a homerun biotech trade was AMRN when it reported data [24/9/2018], broke out late day, this thing had already traded like 100M vol when it took out orhs, broke out late day and went up 125% in a month and a half. That’s what you want to see, look at the vol, big gap up big vol, this is why vol is so important on these eps, this thing was barely trading, like only 3/4/5M shares per day, then suddenly it traded like 10M shares in the first couple of mins. Same with SNAP last week, this is how big moves start, big moves start from strength many times, not always, but if you understand how stocks move, if you study thousands of stocks back many decades you will see this.
  • You don’t need to be a wizard to make tens of millions, you can be an idiot, you can’t be an idiot but you can’t be a r*tard, you don’t have to be a genius either, as long as you’re not a genius or a r*tard, you’re gonna be fine.
  • I don’t like the 4% method, bc 4% on a high ADR stock is not a lot, and 4% on a low ADR stock could be 2x the ADR, I don’t like the concept of 4%, what you need to be focussed on is just seeing range breakouts, doesn’t matter if it’s 2% or 7%.


  • Sweden is in the vodka belt. There are diff alcohol belts, blue is vodka, red wine, yellow beer.
  • My last name means mountain of gold.
  • I did have some capital when I started to trade, I took my life savings, six thousand bucks or whatever it was.

#masterclass #ep #earnings

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