Market meltdown continues – but as a trader it doesn’t really matter how low we go. Heck, the lower we go the better the reversals will be when it’s time.
If you’re trying to find the bottom for sure – you’re going to have trouble in this market. Right now it’s not about coming in hot-headed thinking you have it all figured out and you’re going to nail the bottom in size. Hey — that works, until it doesn’t and as you know you always own too much when it doesn’t.
Over the last few weeks, we’ve talked a lot about how to trade this market – and it’s working. I wouldn’t change a thing. Less trading, bigger picture and leave room to be wrong (wider stops on first entries).
There is no point to sit here on scan and have a full game plan for names in this sorta market. It’s best, in my opinion, to have an idea of what charts look like, general thesis if market does X and a general thesis if market does Y.
Had a hell of a fun time this weekend in Arizona! Great area crazy warmth and we even snuck in some great content I think you’re really going to love.
As always I try to throw a few reviews/tidbits in that happened over the week and I think GSUN drives home the big point I always make: Always look left! Total hindsight and no I didn’t take the trade I was pretty much taking the day off but take a look and see it $95 last run and $94.999 on Friday before dropping 50%. Save it – review it – remember it!
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Giveaway Winners
- Quixotic – T-Shirt
- Mac- T-Shirt
Video Scan and Game Plan
Stocks to Watch
NIO been a great trader lately – had some relative strength off open on Friday and made for a nice trade. This would be a market timing trade of choice – good range good volume and liquidity has been perfect. Gap up look to fade failed follow through, gap down look to trade a reversal. No sense making a call because let’s face it — are we gapping up 200-500 Monday or down? Who knows – let’s wait and react.
SAVA huge squeeze out on Thursday and right back down on Friday. Give this a few days but watch all pops ideally $1-2 + more and then failed follow through set up would be nice.
UVXY if we stabilize by Monday or Tuesday we should see this thing sink right back down. There is no panic in this market judging by how this has moved. THAT SAID — if we don’t bounce by Tuesday for the short term I think we’re going to see volatility pick up and panic start to creep in.
TZA watching for a trade of choice once the market has a rebound day I’d fade this.
Failed Follow Through:
LGHL been a known pump – doesn’t mean it needs to go down but watch for a trade like IMTE once they decide to pull the bid.
AMPX watch for morning shove and failed follow through.
FREY morning shove would be ideal and failed follow through – big opp on Friday but wasn’t really around much to focus on it. I’d continue to look to trade this vs. VWAP (regardless of side).
Continuation:
ATHX watch if dips get soaked – could get a 2nd or 3rd day out of it.
EVTL watch if $8 starts to build for break out
Staying Familiar:
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