Traders, Happy Sunday!
I sincerely hope that you have all had a relaxing, peaceful weekend. As I mentioned last week in the blog and video, I will be traveling until the end of October, so the posts will be shorter and slightly variegated until I return from my travels.
But don’t worry, I won’t leave you hanging! I would still like to introduce fresh ideas either each week or review the ideas from the previous week so that while I am traveling, you are still worldly-wise to whop your progress and remoter strengthen your trading career.
With that in mind, traders, I want to review the ideas this week and provide updates on what was discussed last week.
Many ideas worked out brilliantly from last week’s watchlist and spare trade ideas I provided in the weekly video posted on YouTube on Monday.
Breakout Triggered in Advanced Micro Devices (NASDAQ: AMD)
After several months of consolidation, AMD tapped out on Friday with increased volume. Last week, I discussed how I was looking to get long if the stock could unravel whilom the consolidation resistance AND hold above.
The stock tapped whilom the resistance, which had lowered to $105, and sealed near the day’s high. If you would like a refresher on the idea, I urge you to read last week’s post to understand my original plan and thoughts.
*Please note that the prices and other statistics on this page are hypothetical, and do not reflect the impact, if any, of unrepealable market factors such as liquidity, slippage and commissions.
As the stock tapped out on Friday and successfully held over resistance, remoter validated by a strong close, the trade appears to be on.
Going forward, $104 is a reasonable stop loss area, as I would not want to see the stock goof and re-enter the consolidation – that would signal a false breakout.
I would like to see the stock pull when to $106ish and make a higher low, indicating that an uptrend has been established and buyers are stepping higher.
The target for the position remains the same, as mentioned last week: $120.
Last Week’s Short Idea in Novo Integrated Sciences (NASDAQ: NVOS)
Sometimes, an idea is spot on, which was the specimen with NVOS. The plan laid out last week materialized perfectly. Regardless of whether you were in this trade or not, it is an spanking-new opportunity to review the whoopee and remoter understand my thinking.
For the original plan, please refer to last week’s watchlist, where you will see my plan and thought process.
Specifically, I wanted the stock to push when into the $0.40 – $0.50 range of supply and CONFIRM a lower upper on the hourly timeframe versus the upper set on 9/13.
On Thursday, the stock transiently tapped whilom $0.50 and immediately failed, thereby confirming a lower upper and stuff on a higher time frame – that was the confirmation and signal to get short, risking versus the upper of the day.
*Please note that the prices and other statistics on this page are hypothetical, and do not reflect the impact, if any, of unrepealable market factors such as liquidity, slippage and commissions.
As I mentioned last week, once the lower upper was confirmed, it could trade to my targets within two days. On Friday, the stock sealed near $0.30.
This is a textbook example of a lower high, heinie short-swing opportunity in a fundamentally flawed stock.
For those interested in setups like this, please investigate remoter the setup, characteristics, and fundamentals overdue the move and stock.
Last Week’s Short Idea in FEMY: Solid Example of Heinie Short Swing
Lastly, I want to transiently outline the transpiration of weft that got me to go short FEMY.
During the weekly watchlist video from last week, I discussed how I wanted to see the stock frazzle over $4 and squeeze out stubborn shorts holding this, then a reversal and a well-spoken shift in momentum to get short.
*Please note that the prices and other statistics on this page are hypothetical, and do not reflect the impact, if any, of unrepealable market factors such as liquidity, slippage and commissions.
On 10/2, that’s the setup that offered itself. The stock squeezed off the unshut on variously large volume, signaling to me that stubborn shorts were stuff squeezed out of their positions and late-to-the-party longs were chasing the stock higher.
This blow-off move to the upside without the stock was once up significantly from under $1 was a well-spoken vacuum move that signaled the end of the front side.
Important Disclosures