Really amazing week last week - putting what I talked about on Sunday scan to use A+ set ups, being patient and really didn't run into any hiccups. Caught a bunch of intraday offerings just by what we always talk about #KnowWhatYouOwn -- Surprisingly many held well post offering and had a solid rebound.
Today's pre scan topic on the video is about the SECTOR plays and understanding the difference between and done and when sectors get HOT.
I tried to pool all the virus plays together although many are going to be Main Watches - I wanted to keep them all together so you guys could see what I was focused on from that group.
Make sure you guys are taking advantage of the real time price alerts !! It's a big feature. We're paying for real time data and what you guys to get the most of it.
Additionally - please remember new members get a feel for the room for 2 weeks ask any and all questions in the Trader's Lounge ! After two weeks you'll likely have a good feel for the momentum chat runs.
Video Scan and Game Plan
Stocks to Watch
TNXP higher better - ideally $1.60-1.70 + rush off open and then let the selling confirm before trying to get too aggressive. Every shove on Friday was met with serious sell pressure and each time it failed I loved it more and more. The more they trap longs the better the trade is/will be - so they definitely got on the wrong side Friday.
SPCE the best thing I did was shift to a very open bias on Friday - I went in on the day thinking you know what? This could base and just keep trending and no matter how confident I am that it's going to unwind I could sense myself getting a bit to biased -- so I went in to open clear head waited for the tape to tell me and as you saw scaled scaled scaled because it was the A+ set up we were waiting for. Ideally for a re short - higher better $17.50+ blow off then sit back. If it stays weak opens red and fails $17s I'd fade it there as well. Take a look at SDC the 'easier' A+ set up happened so from this point forward need to focus on trend, and locking in to the big moves vs. trying to get every dollar out of it.
MAXR coming in nicely, morning push is ideal $19.30s + is ideal vs. $19.50s -- steady trend although it may be a few days of fast flushes this may be the start of the gap fill back to late December.
MOMO looking to fade all strength vs. VWAP until it finds a base. Never underestimate these just like JD they turn when they want to turn until then best to be taking piece by joining trend otherwise reactive scalps.
KPTI so far so good from trade idea last week and this week. Higher better for back side unwind. Still thinking $15-16 near term on some panic/flush & profit taking. Nothing I'd swing but same play as all week last week - look for morning strength and wait for seller vs. VWAP
All of these names are really going to depend on headlines and action. Please understand what a sector theme is.
Never underestimate SECTOR & THEME plays.
Yes, many one shot wonders come about and leave quick but when an entire "sector" ie: Virus names etc. start to fuel one another - these these can hang longer than you think.
— Nathan Michaud (@InvestorsLive) January 24, 2020
AHPI killer rip on Friday - saw it floating up but didn't get the chase. Had a nice short once they were screwing around on the tape with 100k bids and tossing blocks back and forth as we discussed in the Trader's Lounge - faded it $3.50-3.30s to $2.80s and moved on. Given the news/sector easily could hang on - cautious it's thin.
NVAX nice push AHs - lets see the headlines by morning.
NNVC ripper AHs - nice squeezer. Still thin even after the raise.
$APT replaced what I sold midday since it's back to entry from earlier. Bigger picture idea not scalp. Sizing accordingly. I think many chased it too far today w/o a plan & flush them out. Lower better leaving room for Monday AM if no gap. But over weekend likely more headlines.
— Nathan Michaud (@InvestorsLive) January 24, 2020
APT really nice scoops 🙂 I sold 1/2 $6.5x's AHs since it was up about a buck from the load into the close as noted. I started scooping a few and then scaled into the flush w/ the big picture game plan I noted. Let's see what happens
BPMX worthy eye if things get out of hand. Don't have any left from that first swing but definitely going to watch w/ the rest.
Weak Open R/G or 945-10AM + Trend Joins
TRIL shorts never got let out of this one, I think it can stay stronger than most think for LONGER but eventually unwinds back sub $3.50s. Watch for the set up like Friday weak open and ramp or ABCD set up midday etc. Friendly trader. Make sure to trade it though and not over stay.
MGEN watch dips if we start to base again .90-.95 I like it - offered a nice trade early in the AM into circuits and then late day off the sub $1 wash to almost $1.10 where I reminded everyone to make sure they are locking in. Assuming fails etc.
VIR weak opens .50/share or so is ideal for r/g and break out potential low vol -- unlikely I trade it unless sets up perfect.
CBLI nice from the trigger noted on Twitter $1.10-1.20 - actually was swinging a ton of this given chart and buyer in the tape but unfortunately sold the bulk of it. Still can be a wild one and if it holds over $1 I think 5 more days expect a regained compliance PR -- not that that means anything but -- in this market Twitter pumpers will pump it LOL.
Failed Follow Through
NIO has been offering good trades lately - not a main watch but STAYING FAMILIAR with the action, trend, tape and chart.
LK post offering squeeze finally settling down a bit. Higher better and sub $40s is ideal.
I nice idea from scan this week still think we're going sub $5s near term. Was a big bounce potential and now not only long term folks but bounce players are fully bagged and liquidity is not what it was before. Higher better.
SDC higher better for back side post squeeze unwind.
GSX good timing on scan for this short - was there the last few days covered too early Friday, was ok on Thursday. All about following these names up -- setting price alerts and waiting. Ideally sub $28 and rally.
TWOU from Friday trend join - this could be another $1-2 fade near term.