Here's the game plan for Monday, December 31, 2018.
We'll do a live broadcast in the chat room before market open.
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Video Game Plan
Stock Watch List and Game Plan
Excellent week last week -- WATT and VTVT offered some fantastic gifts!
Just a reminder my goal is to focus on only 2 or 3 MAIN watches but be familiar with the entire watch list. I am NOT looking to trade a dozen names. I do a pre market broadcast at 9AM EST (screen share) where I discuss the top 2 or 3 from scan plus the top 2 or 3 adds from pre market. Next, I formulate my top watches off OPEN for REACTIVE trades and then SECONDARY trades.
Seeing the name once on scan takes away HALF the research involved when it comes into action or hits scan intraday!
I am definitely not super excited about anything on scan but that doesn't stop me from becoming prepared -- most trades lately for me are 10AM + (big trades anyway) I have not been being aggressive off the opening tape because no matter how right you are 3 minutes later you can be dead wrong. I've been treating most trades pre 9:45AM as scalps only if I nail the trade I am downsizing immediately if I don't I am keeping sizes small w/ plenty of room.
AMD nice trade into close Friday (I used this as my go to trade because I thought market was going to tease traders to chase into the close but use the opportunity to sell into them - got it right so this was my "low cost alternative trade" vs. the market. Feels like it's been relatively weak as of late in other words - at time other peers are grinding well with the market this one has stayed relatively heavy. If the trend fails I'll be looking to fade it -- this one is always surprising though if the market hangs out a few more days I'll be pissed I didn't long when it's at $20 🙂 SO as always - I will look for relative strength/weakness vs. market just as I did Friday and ignore it the rest of the time!
VTVT nice slam into the close, newsletter was getting long and adding which provided a nice sell opportunity into the $2.90s fortunate to act very quick. As you guys know post 2PM + when things get crowded and ramp pre maturely ESPECIALLY if fueled by a newsletter that's no different than the morning -- #HITTHEDAMNBID - ZERO interest in trading these things when chat rooms are around. higher better and I think we'll have a nice fade back like WATT -- but the volume was huge so anything is possible. Just think we need to work out some late day bag holders if it's going to bounce at all. Hope comments helped in the room!
AWSM $1.80-1.90s base - watch $2.20 trigger. Big trade on Friday from $1.80-1.90s pretty much sold 1/2 at the top but I did carry the rest back to $2.20s but hey, that's what happens when you let a winner work. Ditched it and will watch to see if they come back for it the next few days. Very low quality play so I'd need to see a legitimate trend formed with good volume.
QTM weak open vs. $1.90s and $2.20s + trigger - no real bias except that I think we'll have a .20-.40/cent opportunity. If it sets up and does an ABCD curl w/ proper risk/reward off $1.90-2 then I am interested if it gaps $2.10 and fails a few times I'll look to fade it. Looked like a bit of a cover into the close Friday.
SNAP weak open for break out $6+ and then keep an eye once failed follow thru starts -- should be nice .50 fader. This is one that you need to have a big picture thought process with and not something I typically trade well on. I get in, I add it pulls a bit I sell down to starter it ramps up to highs ... repeat repeat repeat.
AUPH dips $6.60s a guide and possible red/green ++ shove - had a nice trade Friday here loved the chart - thinking ENTRY is most important but definitely watching for possibility of all weak opens getting accumulated for break out.
PTLA weak open may start to get a good push $18+
QTT sticking with swing for now - but make sure to lock around core - it's offered over $1.50/share so far
WATT gap down flush for a quick rally and punch out (like Friday) -- or gap up shove and look for the same thing as Friday and fade it back. If it hangs on -- it is T+2 so I'm really hoping we get that secondary shove but $6 to $9 to sub $6s -- I don't really think shorts are in a bind any longer. The "game changer" I think on this one will be if they drop a PR then likely a gap and churn through any who didn't cover before ultimately failing.
BTAI if $4s hold look for next leg on $5s + not a favorite I just know if I don't have it on watch and it goes on T+2 I'll be pissed so better to be prepared and see it vs. unprepared and miss it.
CAG same as Friday looking for failed follow through momentum -- seller is still present in the tape and only bounces if it's "forced" to with the market direction.
XRX same as CAG -- heck both may be nearing short term bottom but I do think if they slip into their next leg down we can get another $1-2 downside on panic before any real bounce happens.
JD $22 clear resistance 3 times now - any big move through that let's say $22.50-22.70 off open I think will be met with pressure back to $22 -- any weak open I think we'll see bids form back to $22 - don't force the trade but it's been good to us.
WLL looking to lean if sector fails - as much as this is beat so is the sector and one thing that was important not to do was underestimate how far it can fade -- so with that -- so far I am considering this a 'relief' rally and the sell is back on until proven otherwise.
HES same as above.