The market insanity continues.
First off - IF YOU DID NOT BANK stop, relax, shake it off and FOCUS.
This market is NOT going anywhere.
It's the worst thing knowing you're not killing it when a lot of others are. I'm as streaky as they come when I'm firing on all cylinders I'm friggin' firing -- when I'm not I'm just head down and trying to find the best A+ trade I can on any given day.
When others are killing it if I let it bother me - my focus goes off and underperform.
SOMEONE WILL ALWAYS MAKE MORE. Heck I could tell Phil (OzarkTrades) what I made last week and he'd prob say sweet I made that on Thursday or something like that knowing him 🙂
Point here is someone will ALWAYS make more, someone will ALWAYS do better and if you let it get into your trading it'll impact you.
So first and foremost just STOP. There is a reason why I don't do the low hanging fruit PnL post in front of everyone's face. My goal is not to dangling a big PnL in front of your face and have you sign up for a month. That is the WORST kind of subscriber similar to the guy who signs up because they saw a rented Ferrari on their social media page. Yea, churn churn churn - that's why we don't have a big churn rate at IU - it's a community that sticks.
My goal is to show you the process and thoughts behind why and how I took particular trades.
Focus on what matters - it's not the PnL, it's not the car, it's not the watch - it's the friggin' trade. The trade set up. The opportunity. The edge.
Was it repeatable? Can you do it? Do you understand why? That's what it's about right now. It's not how much someone made - it's your next trade. Are you being the BEST you that YOU can be?
This is a GREAT time to stack cash as a TRADER.
If you're trying to be an investor and catch a falling knife and getting frustrated looking at your positions etc that's because you're trying to be an investor with a trader outlook. As I mentioned yesterday PICK ONE from the start - and don't change it.
A+ vs. Scanner and wait for it to come to you day (Reactive from scan)
You only need to get rich once!
Key is to stack capital - stop thinking "Well I could make $X more" no, if you nail the trade pay yourself focus on patience AFTER you've "made it" right now it's about securing as much capital as you can in your account while it's for the taking.
- Take Gains
- Multiple consolidation periods
- Squeeze outs & washouts (cautious of bias) = INO
- Staying power to be aware of = OPK
- Watch bias
- Watch sizes
- Easy to be exhausted
- Only size for me is exhaustion candle or AFTER
- Less is more
- Have wish orders out
Have max loss (should not throw your next days game off ie: $5K $20k vs. $50k+ examples) to be wrong. No sense staying in if it's not paying you right now. There's too much that is.
Get ready get prepared and execute if A+ if NOT A+ sit back wait for scan hits wait for the trade - dabble and scale in if it works in my opinion.
No reason to catch a falling knife no reason to step in front of a freight train. With range like this there is plenty of meat on the bone.
In a market like this - it's just about seeing charts - you guys know my Finviz settings if you don't you can review the Beginners Series or Tandem Trader / Textbook Trading again - I go over them there. Go through and look at the first 20 pages on each list - see the chart at least once. It'll help
Video Scan and Game Plan
Stocks to Watch
OPK big trade Friday - twice. Looking for more strength and then join once they stuff traders into key levels (look left)
VXX looking for one big trade per day on this thing and not trying to get too aggressive in any one way. It's been good to us. I had a great day Friday I did see a nice trade set up at the end of the day but sat on my hands. We'll see where the market ends up come Monday but if we stabilize I'll be fading it if not -- I'll likely avoid. More in the room Monday.
AMD really nice relative weakness on Friday scored nicely on the flush -most important part once again were the covers. Likely reactive trade and $2-3 opportunity on Monday. Depends if we gap up or down but likely a go to trade for me.
INTC another similar to AMD actually had a pretty ridiculous move - thinking we'll also have a $2-3 opportunity here. Likely reactionary trade off any good parabolic move off open or failed follow through.
Failed Follow Through:
MRNA so far the ideas from last few scans have been working. Last Sunday said I figured they'd start unwinding that massively sized offering they recently had done. I could see this going back sub $18s as long as the virus names chill a bit.
CODX very good to us on Friday higher better and looking to fade any good para moves but once again the most important part as you saw on Friday was the covers. Worked fantastic.
INO $400M filing AHs - doesn't mean short off the bad but likely has pressure. In an idea world everyone shorted the filing and gets caught it pushes out and gives us another opportunity before the unwind back sub $5. So far it's been a pretty amazing profit center.
OXY sector trade of choice - in the end doesn't matter if Icahn is here, he got a lot of retail traders long Friday as well as the days he filed. But if the sector fades so will this and it'll have lots of fresh retail traders to unwind.
JDST just insane - avoid if new given it's an ETF - you know my ETF rules if you've reviewed Textbook/Tandem Tader. Looking to join a trend cautiously if the short side provides an opportunity. Only looking to join if it's weak - strength can kill just look at Friday's move.
UAL I think we'll have some pressure for a while here - especially overseas airlines and it'll put pressure on ours but in the end these will be good buys one day. Looking for the capitulation trade - if we lose a few foreign airliners it'll likely put pressure on ours and then at some point provide a good opportunity for long term. For now, as a trader I am looking to trade just the moves like we did on Friday - reactive on scalps or trend join on dips, set risk.
AAL watch with UAL - was a bit weaker.
TVTY not trying to find a bottom but will set some price alerts to watch for the trade.
SVC same thing - just staying familiar - no trade yet. Watching for a trend to form and will set price alerts.
PLAY disaster! Same as the rest - can keep unwinding just want to SEE the chart for "THE" day that it rebounds and hits my price alerts.