First off you’re all very welcome for me taking the week off 🙂
What a crazy market we are in – traded each morning for 15-20 minutes just to get familiarized with how things were acting and reviewed later on in the day each day. Absolutely insanity tight now. Hope you’re all trading it well. Once again this is a TRADERS market if you buy, sit and wait you’ve obviously lost your shirt. The AMC DKNG GME crowd is down a fortune – reality finally mattered. The thin IPO crowd CYN MRAI etc all down 60% past two months DATS down like 80-90% worthless shell as warned many many months ago. Every reckless decision that was rewarded has now caught up to everyone.
As we talked about many times, all this craziness will come to an end for many – but as you’ve seen not for those who can trade the market both ways. Most are only one sided – this is why being permaunbiased is important and knowing how to navigate the upside and downside is important.
THAT SAID – be CAUTIOUS of bear market rally moves. What do I mean by this? When you think about it in terms of % of traders out there, number of people etc. prob 99% of people do not short names or even know what it is. Those with poor risk management or margin issues will be tested – flushed out and rebounds will be very fast and thin. So far each rally has been short lived and met with more resistance. We likely have many bounce days but the over all trend IMO will keep pressure and work out all those over leveraged.
Stay focused – stay safe and let’s keep this action going!
Video Topics:
- Unlearning everything you learned
- Let trends confirm
- Never underestimate bear market rally
- Never scale beyond comfortable risk
- No trade is okay too
- Stop making excuses why it’s not working
- Imagination!
Video Scan and Game Plan
Stocks to Watch
UVXY It’s very important to understand just what this is (and every other ETF for that matter) before trading it/them. Many times traders get in and don’t understand what would make it go up or down – and think it ONLY is opposite the market. Each time I put it on scan I try to remind folks about this. The is a volatility product so when the market is in free fall typically volatility is sky high – thus ramping as things settle in this will come in. I typically use whatever is leading the markets as an indication for possible reversal points – if tech is leading use that, etc. We have yet to really see any serious “panic” just steady pressure. Be aware of that.
TQQQ great trader all week – nothing better than weak open flush followed by the big r/g rally only to reject and unwind the rest of the day. You cannot ask for better range and now that SQQQ just reverse split — likely fade that one as well when it’s time to bounce TQQQ.
F touchy subject – got a small piece but I know I know I know, waited and prepared for this move for 2.5 months and of course it happens vacation week. Literally sized this name every day waiting for that day – but you know what? Is what it is – I’ve moved on and I’m focused for tomorrow. I may have said this a few times on scan – in the room – and Twitter but that’s my process if you beat yourself up over missing likely top 5 trade you’re going to drive yourself up a wall. Is what it is – next. Just sharing my process
Failed Follow Through:
DWAC really nice plan on Thursday for the $82-83 push and unwind — worked perfect. Judging by the SPAC names ie: DKNG SPCE etc I would actually start to think we may see the beginning of a really big unwind on this name. They will pump this into Feb 21st but at the end of the day the only thing of value right now is the Trump name and paper to sell and they will use that volume and demand to turn the paper into dollars in my opinion before liquidity is gone like the rest.
DAVE nothing to catch top on but watch blow off through $10 level let it do it’s dancing around and look for failed follow through set up.
PT feels like RETO — China walk up with huge bids. Nothing to jump in front but monitoring when the pressure comes.
RETO nice China unwind name – good heads up in the room clean fade and great way to end the day Friday. Morning shove is ideal and looking more pressure to remain.
BBIG killer plan we went over last week on the video goal was $4.50-5 + don’t waste time getting the top but most importantly don’t underestimate the unwind. We’re going to see a lot of these – just like DATS funds move in move out and move on.
Continuation:
IMTE so far steady squeeze from the liquidity trap we discussed past two weeks. Still getting soaked all dips. I have it on the continuation scan because it very well can continue but I am not looking for the long personally. Thinking it continues to grind until we have that parabolic day and that’s when I get interested. Watch for volume to increase/speed up & exchange.
LLNW dips vs. $4 – nice break out day with volume – no position but leader in this market which is rare with all the unwinds.
VVOS liquidity trap potential.
KPTI break out watch over $8.50s
Staying Familiar:
ETFs To Be Familiar With
Hi, my name is yossi Rosenberg and I’m from Israel. I want to say thank you.
Every week I’m learning from you something new, and I’m enjoying to watch your Sunday scan every time cuz I’m taking from it stocks to use for myself.
So again thank you, and good luck in the future too