293 [Trade with rules. Join the stream. Feb 24, 2021]

  • SNAP is a superstar, incredible strength, PINS too.
  • GME failed the 10day again. GME has started building hls, and again it doesn’t have to bounce but one of these days I do believe it’s gonna be up 50/100%, but for that to happen it actually has to break these declining MAs. GME come on, too bad it’s gotten very thin, it did show rs yesterday and it’s been in a tight range for a while now. I don’t think today is the day, the volume is just not there.
  • FSR has some big volume, is there any news on it? Ok signs a memorandum of understanding.
  • CELH not a good short no, don’t short thin stocks ever.
  • That’s the good thing about corrections, you see what holds up, but I think it’s too early to start buying breakouts, one there’s not many good setups just some random stocks here and there, and two, I think we may need more time to resolve this. And even if the market rallies from here it’s gonna rally into the declining 10/20day so there’s a good chance it’s gonna lose steam when it gets to those areas, but rn QQQs are still below the 50day, SPYs and IWM holding up nicely, yeah it’s the QQQs where the weakness is. I want to see a proliferation of setups, that would be the buy signal for me, rn there’s too much random things.
  • Usually you want to get the first or second ep, this is already the third, idk could work but rn isn’t acting too well, near the lods.
  • FUTU I shorted it yesterday, gapped down, rallied back into the 10day and that’s where I shorted it.
  • Ok so tight versus loose, so someone showed me GATO, why is this not a good setup? One it already made a big move, 3days up in a row it’s up 30%, there’s no range here, it’s already made a big move, what’s your edge buying something up 30% in 3days, where’s your edge? Everything else looks fine, it has a lot of momo, it’s up 140% in 3months, so it does have momo, it is building hls, it’s showing rs, it was up yesterday when the market was selling off, but there’s no setup, no tightness, it’s wide and loose. Whereas something like SAVA, also has a lot of momo, building hls, but look at how tight it is, it’s been pretty much going sideways for the past 3weeks, building hls, lhs, getting tighter and tighter, also showing rs. This is a good setup, this is what you want to trade, this is an edge.
  • ROKU, this was a great setup when the Oct/Nov2020 correction ended, this was one of the first leading stocks to breakout, and you can just draw lines, you can see it was building hls and had this rangebreak, you can totally ignore this candle here bc it’s the overall pattern that matters, you can also ignore these undercuts, these overshoots, it’s the overall pattern, it’s getting tighter overall, and this thing had a lot of rs too, wasn’t maybe as tight as I would have liked it but it was showing rs, sometimes that trumps tightness, but doesn’t mean you can just buy anything.
  • SI is a good example, now the two days before the breakout here weren’t tight, but it was showing a lot of rs against BTC, BTC was down and this thing they tried to bring it down and every time it just reclaimed and closed into this range of hls. This one also look at the overall pattern, you don’t draw the line up here bc if you buy it here you’re a loser, you wanna buy it as it breaks out of this tight range, the overall range is very tight. It doesn’t necessarily have to be a tight range day the day or the two days before, there are exceptions, but the overall pattern and things like rs, you have to put these things into context.
  • It takes many years but 90% of the setup suggestions they’re just random stocks, I don’t really see an edge, they may or may not have a good setup, but you really want to try to trade the leading stocks, the hot sectors, things like that. Not that you can’t make money off random stocks that happen to have some momo, and random good setups, you can, but try to stick to the hot stuff.
  • IZEA, yeah this thing didn’t even hit my scans but down here 5* htf, look at this had a lot of momo, orderly pullback, started surfing the 10day, got really tight and then a breakout on much higher vol, it almost quadrupled in two weeks.
  • There were some really good mean reversion setups yesterday like PLUG, TSLA was the mother of all, it hit the 100day almost to the penny, lods 619, 100day was 619.32, incredible mean reversion setups.
  • If you want to make a lot of money in the stock market, stop having favourites, your favourite stock should be the one with the best setup. You should treat every stock depending on the setup, only love the stocks that have good setups and are acting well, once they trigger your stop or are not acting well, that’s when you should end the romance. That’s what a lot of people have a hard time with, they have these favourites and they just can’t get out of that mentality of loving a stock or certain sector.
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