295 [Market in limbo. Feb 26, 2021]

  • RKT is interesting ep candidate, but they’re gonna have negative eps and rev growth next two years, but is there reason for this thing to go up idk, high short interest maybe, could be an ep idk. Only if it takes out hods, but the stop would have to be very wide, it would be best if it closes strong and goes sideways for a few days.
  • MARA perfect perfect perfect rejection, third day bounce, actually it was a second day bounce but perfect rejection at the 10day and look at it now, learn this setup guys.
  • AMC perfect late day fade yesterday, textbook, when it lost vwap late day. You have a stock up 4 days in a row, big move, gets tight the whole day and then loses that range, that’s a big edge, if you learn and understand this setup you’re gonna make a lot of money, but they don’t come around too often.
  • GME I missed the add, was gonna add when it lost vwap but I was a bit too late.
  • RIG, I don’t see a setup it’s too choppy, also I think the oil trade train has sailed, we’ve had a lot of big running the past two months, I think the whole sector needs to go sideways for a bit, this is a big of a laggard oil name, have to put things in context like a lot of these oil names look very extended and vulnerable, I wouldn’t want to buy a laggard name in any case personally. Only if like it starts showing some type of rs but rn it’s just a laggard.
  • The parabolic setup, doesn’t matter if it’s long or short, it has to be multiple days in a row. RIOT let’s say if these two days didn’t happen, that I would have considered for a parabolic long, but this is just like the stock went sideways for three days, and then went down a little bit, that’s not a parabolic setup.
  • RIOT looks like it wants to go to the 50day. I’m covering some RIOT here, I did add a little bit bc it looked like it was losing the 20day, but now it’s reclaiming the 20day so I’m covering what I shorted and also some of what I had before bc now it’s kinda reclaiming.
  • ARKK I think we’re gonna see some type of flash crash, this thing there’s just too many weak hands, too hand crazies holding this thing, once they start seeing red in their accounts, it’s gonna be interesting.
  • I feel like something bad is coming, I’m actually gonna do some UVXY on the long side, just in case, this is a low probability event, probably maybe 98/2 idk, we’ve seen it before, these things happen sometimes. I bought the top what a loser, that’s what so great about the market, if you’re wrong the market will tell you right away.
  • If you’re frenetically looking for breakouts rn, just look at whats happening with these earnings gappers, all reversing to the downside, every single one of them, that’s not the market you want to but stuff on the long side, this is what I mean listen to the market, stop listening to the opinions of other people, listen to the market. In trading the only thing you should listen to is the market, no one knows anything, no one knows what’s gonna happen, but the market will tell you what it will do, it’s your job to listen.
  • It’s been in front of all of us these past few weeks, obviously you’ve got all these stocks up thousands and thousands of percent. ZOM up 3500% in a few months, BNGO up 2500% in a few months, SNDL up 2000% in a few months. These are extreme examples very low priced stocks that made big moves, but obviously like a lot of things were up, like BIDU megacap stock up 160%, it’s just not sustainable, things don’t go straight up ever, but for a while they do. So that was the first big warning sign, a lot of extended stocks and we’ve had a 4month bull run, a lot of big moves. The other thing was a lack of long setups, there were just not many good looking long setups, everything was either very extended or sluggish, no solid bases. The third one, where I started really aggressively selling things and getting short, was when stocks started actually breaking down, breaking their 10day, htf stocks like TSLA, PLUG breaking down, I shorted with both hands. when you see htfs on already extended stocks break down, htfs usually make big moves in the direction they break, if they break out they make big moves to the upside, if they break down they make big moves to the downside. The market has been screaming at us for several weeks that this was gonna happen, with experience you will realise it’s the same things over and over again, same cycles repeat over and over again.
  • GBTC losing the 20day, also taking out the lows of this bounce day here, not a good sign when these things lose their key MAs. I’ll rebuy it on a good setup, like I did several times, but there will be a time when it never comes back, and that’s what you have protective stops for.
  • DKNG was an earnings breakout, it wasn’t an ep it didn’t really gap up that much, but it was a decent breakout setup with earnings, if it hadn’t had earnings I wouldn’t even have touched it, but sometimes when things breakout on earnings even if the setup is not perfect, they can work really well.
  • Easy money making periods are followed by easy money losing periods, rinse and repeat, that’s all you need to know about the markets.
  • BIDU if you look at it was pretty much the opposite of a bullflag, it was a bearflag, next stop I think could be the 50day.
  • Some things are finding support on their rising MAs, like ICLN clean energy etf, a lot of solar stocks and stuff, they’re finding support on the rising 100day and building hls, TAN also building hls, but too early to tell if it’s gonna resolve to the upside or the downside, could be a bear flag in the making, not the time to be aggressive either on the long or the short side.
  • WIX yeah it broke out a couple of weeks ago here, look at how tight it got, found support on the 200day and then it had this range breakout candle called a pocket pivot [1/2/2021]. Same setup I bought on TDOC here [6/1/2021] also a pocket pivot, got really tight was also surfing the 200day, it did close weak but that was one of my biggest winners on the long side this year, and then I sold it when it closed below the 20day, and look at it now, that’s why rules are so important.
  • During the weekends, that’s where your edge is honed, it’s not trading choppy markets that’s not where you get an edge, you get an edge by sitting there and doing things most people are not willing to do, that’s where edge comes from.


  • Keeping yourself busy, with something completely different, when there’s nothing to do, that’s an edge.
Scroll to Top