296 [Basebuilding period. Less is more. Mar 1, 2021]

  • SOS gapping up, I was hoping it would gap down that would have been a 5* mean reversion setup, now it’s just gone.
  • FSR had an ep here [24/2/2021] that’s when I bought it the volume was telling the story, I also bought it on this day here [12/2/2021] but that time I got stopped out around b/e.
  • PLUG it could work, bounced above the 100day, still showing strength, had a decent pullback, but I would prefer a little bit more of a flag setup, but yeah it could work orhs absolutely. PLUG is intriguing too but I think it’s gonna run into the declining 20day and get rejected there, I think it probably needs a few weeks. BLDP and FCEL, yeah maybe a fmd.
  • BTC too I think may need more time, but yeah it is holding above the 50day.
  • W I think it needs to tighten up but it’s gonna be a big one, gonna go to 300/500 in a month once it breaks out, ideally it tightens up a little bit but man this flag is really big. Just like the WIX flag/channel, 6 months consolidation.
  • RKT on the way back interesting, it’s a pretty decent looking ipo base here, earnings outlook sh*tty but very high short interest could be a driver, and also had big volume Friday. Bought some through highs.
  • VYGVF interesting, not that great on the daily but has been building hls, could have been tighter, looks better on the 60min, very thin though.
  • PTON found support on the rising 150day, building hls above it, a lot of these stocks look like that.
  • DKNG Friday I think I took a loss first, so it gapped up took out orhs, I bought it here high 61s then it went straight down took out lods I got stopped out, then I rebought it when it was about to take out hods midday, then it dipped again right after I bought it but it kinda held up nicely so I held it over the weekend. Again, every time something breaks out on earnings, wasn’t really a strong breakout Friday but it held, still was strong, and on big volume. It was like a pocket pivot type of a setup. Keep track of things that have earnings, many of the best trades I ever had I bought on earnings, either just a regular breakout, or an ep. It’s a big edge, if you learn how to trade earnings you’re set for life.
  • The earnings really don’t matter, what matters is the earnings reaction, but most of the time obviously you need a big surprise, there has to be a surprise, and there needs to be a lot of volume, and preferably it’s a young trend. Try to buy things coming out of solid consolidations, solid bases.
  • One thing I’ve learned over the years is, it shouldn’t be hard to find setups, don’t try to find the setups, they will come to you. And rn I’m just working too hard to find setups, I don’t like that, not supposed to be like that, the setups should be in your face, like ‘holy sh*t that’s good looking, holy sh*t that’s good looking’ that’s how you know you’re in a good market. Rn there’s just too much chop.
  • When daytrading, I played a lot of mean reversion setups both long and short, I did intraday breakouts and breakdowns, pretty much the same patterns as I do on the daily and weekly charts, just intraday. It’s the same patterns work over and over again, doesn’t matter what timeframe. Simply flags and simple mean reversion setups.
  • YY this is a good setup, actually a pretty decent setup, but it’s one of very few. Look at how nice and clean it is, had a nice orderly trend, pulled back to the 20day, a big wick, closed above it, then it tried to undercut the 20day again, built a range here, and now it’s breaking out of this little range.
  • Remember, money is made in waiting for the big pitches, not trading random stuff in choppy markets. This is not the market to be aggressive. Don’t look too hard for setups, good setups should come to you, they should scream at you. If you’re like maybe… that means no. Maybe means no.
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