How to Set Support and Resistance on a Gapping Stock
Ryan Tonking | Black Room LessonsA lot of times when a stock Gaps there may not be any immediate support or resistance; however, that doesn’t mean that none will form. When we were watching DVA this morning that is exactly what we saw, and we were able to get short at the right location.
Continue Reading -->A Common Trading Setup That I Pass on 100% of the Time
Ifan Wei | Black Room LessonsBuy Low; Sell High. It sounds easy, but that’s because it is incomplete. Trying to apply the age-old axiom in the wrong context can be a recipe for disaster. The low-of-the-day base is a low odds setup that I pass on every time.
Continue Reading -->AMZN: Connecting the Dots on the Road to $2,000+
Amazon (AMZN) has been a big winner for Redler All-Access in the past couple of weeks as it woke up around the $1875ish area to finally break $2,000 today. If you read my 2018 Market Outlook Report back in December or January, maybe you saw my Amazon $2,000 call:I closed out the last of my recent swing long this morning, but let’s go back and see how we connected the dots in Redler All-Access. Monday 8/27 Chart AMZN wasn’t leading the market last week, but it looked ready to get back in the game. We had a potential wedge-type pattern with one of the best companies on the planet. I was long and looking to add if it could get above $1,919, then $1,925. I thought that if it could close above $1,925, then $1,950-$2,000+ would be next. Tuesday 8/28 Chart On Tuesday, AMZN was up $8-9 in the morning so I trimmed some. However, I wanted to stay with some because $1,950-$2,000 was possible for this week.Wednesday 8/29 Chart On Wednesday, Morgan Stanley put a $2,500 target on AMZN, which had the stock gapping up nicely above the descending trendline. I said that $2,000 could be a magnet in the sessions ahead, and AMZN managed to reach $1,998.69 on Wednesday.Thursday 8/30 Chart I sold the last of my AMZN long after the open today. After the big move from the $1,900 area, it felt more like a scalp than swing long. It hit $2,025+. Hopefully it sets up again for move to the $2058 area to celebrate the $1 trillion market cap milestone.
Continue Reading -->Stalking an Options Setup That Didn’t Trigger
Options in PlayOptions Trades with Kurt Capra & Daniel DarrowToday’s video is going to talk about the HAIN earnings trade. It came across our screener as a potential earnings combo trade.We will discuss those points and what to do now that it didn’t trigger the set up.
Continue Reading -->Why Gaps Matter to Me, and Why They Should Matter to You Too
Sami Abusaad | Black Room LessonsToday’s video is about why gaps matter in trading. We analyze today’s gaps and show the power behind these moves, what they mean and how you can profit from such opportunities.
Continue Reading -->Breaking Down Options Strategies for the Big Banks
Options in PlayOptions Trades with Kurt Capra & Daniel DarrowToday’s video is going to talk about recent action in BAC and the Big Banks and how it’s shaping an options strategy for C.
Continue Reading -->Can IBB Power Even Higher From Here?
IBB has been in close focus for Redler All-Access this week. On Monday, I told readers this: The bios held in well and perked up as IBB held $115 and cleared $117. Perhaps this week it gives a better move above $118.40 towards the $120 highs. We’ll look for clues. I ended up getting long during the day as it cleared the $118.30 area. If that level holds, I’ll try and stay in. In time, it seems like it should clear $119.78, then $120.06 for more upside. So keep those levels on your radar.AMD (AMD) has been another big name for us. It’s been a great vehicle in 2018 and hit short and longer-term objectives fast. It’s been very extended and I got short earlier this morning. I’ll proceed carefully with it.If we’re talking AMD, we should cover NVDA too. There was a big Red Dog Reversal buy signal last Monday around the $243.73 pivot. It also had power to clear $263 and hit $278.90 yesterday. I would not chase it here. Maybe it gives a cute short opportunity but I’ll proceed carefully in any case.
Continue Reading -->The Stocks I’m Watching for Today, and Why I’m Leaning Short
Sami Abusaad | Black Room LessonsToday’s video provides an analysis of the current market as well as a review of some swing and day trade ideas for today, August 28.
Continue Reading -->The Good, the Bad, and the Ugly of Today’s Trading
Sami Abusaad | Black Room LessonsToday’s video provides an analysis of today’s trades as well as those from prior days. We also review a few swing setups for tomorrow.
Continue Reading -->When Red Dog Reversals Signal an Igniting Market
Last week I was at the beach, trying to manage my long trades while catching some waves with the family. Things were great on both fronts — I had a great time on my trip, and the market gave us a lot of good trades. The action showed how you didn’t need to be watching the market 24/7 to catch the big waves. At the very least, two big Red Dog Reversals on Monday should have had you looking for long opportunities. Let’s start with the first: On Friday 8/17 Nvidia (NVDA) gapped down big after hit after earnings…. and then Monday 8/20, it roared back to life with a Red Dog Reversal around the $248.73 pivot. It reclaimed all moving averages, filled the earnings, gap, and it’s sitting at record highs this morning.Netflix (NFLX) also started last week with a big Red Dog Reversal signal. It’s gapping up over $374 this morning as it climbs further out of the earnings penalty box to reclaim the 8 day.AAPL has been good to us with a big move from $197 to $219.18 in a month. Last week, it consolidated while the SPX made new highs. I re-entered vs. the $214.50 area. I would like to see it get and say above $217.20 for a move back to the highs and perhaps $220+.TWTR has not been a barnburner, but it hit a high of $34.74. We’ll see if it can hold $33.50 this week to keep working towards the $37 gap area. But I’m not trying to add on strength – I’m looking to possible trim some and buy some back on a dip.
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