Trader’s Digest: The 10 Stories We’re Reading Right Now
Wonder what traders are talking about today?We’re here with the top 10 stories we’re sharing with colleagues today, covering topics like:How to Go Long on a Bearish DayWhat the Fed said at Janet Yellen’s Final MeetingApple’s Highly Anticipated Earnings ReportAnd more!So check out these links right now and get up to speed: 1) How to Go Long on a Bearish Day (T3 Live)The market took a big hit on Tuesday. Rob Smith explains why the 60-minute chart meant it was time to get long. Watch the Video -> 2) Fed leaves rates unchanged, sees inflation rising this year (Reuters)Citing solid gains in employment, household spending and capital investment, the Fed said it expected the economy to expand at a moderate pace and the labor market to remain strong in 2018. Read the Article -> 3) Apple could be the best of the bunch in this tech earnings avalanche (CNBC)Treasury Secretary Steven Mnuchin said the U.S. is open for business and welcomed a weaker dollar, saying that it would benefit the country. Read the Article -> 4) Earnings Season’s Good News Comes From the Top (Bloomberg)Forget the profit noise. A surprising strength in revenue growth is raising expectations. Read the Article -> 5) Profitably Trading Earnings Season with Sami Abusaad (T3 Live)See how Sami Abusaad cleared $78K+ in profits in 4 weeks of trading earnings. Read the Article -> 6) Davos Elites Still Don’t Get Blockchain (Coindesk)What was truly remarkable, at least for anyone who has been interested in blockchain technology since its relative obscurity only a few years ago, was the degree to which it became one of the uber-themes of #WEF2018. Read the Article -> 7) Turning a Day Trade Into a Swing Trade (T3 Live)Learn the thought process required for turning a day trade into a swing trade. Read the Article -> 8) An ambitious project to measure the wealth of nations shows how GDP is a deceptive gauge of progress (Quartz)Is gross domestic product a sufficient measure of an economy’s health? Many argue that GDP, which counts the sum of the goods and services produced by a nation, fails to reflect a population’s wellbeing, because it accounts for neither distribution of income nor extractive effects such as pollution. Read the Article -> 9) Reforestation Drones Can Plant 100K Trees In An Hour (Geek.com)Sure, it’ll be great when a drone can drop off your Amazon Prime goodies or 7-Eleven snacks just minutes after you order them… but it’ll be even better when they help regrow millions of trees. Read the Article -> 10) Jack Ma on What It Takes to SucceedAlibaba founder Jack Ma tells you about what it really takes to get to the top.
Continue Reading -->Profitably Trading Earnings Season | Sami Abusaad
Black Room LessonsSami Abusaad$78,059.89 in net profits In this special video, Sami walks you through his “favorite breakdown of all time” in semiconductor play Macom Technology Solutions (MTSI).Just before Tuesday close, MTSI showed signs of breaking down as it based on prior support above a “tradeable void.”Sami went short at $36.62.The stock cratered, and he covered at $30.02 for a gain of $4,506.27 in one day.But Sami’s no one hit wonder. Watch the video and you’ll see Sami’s actual account statements that show $78,059.89 in net profits last quarter. Join Sami in the Black Room + The Nightly Game Plan Bonus 30 Days of the Nightly Game Plan Sami Abusaad Black RoomP.S. Earnings Season is still going strong. Be sure to check out this FREE Earnings Season resource: The Ultimate Guide to Trading Earnings Season
Continue Reading -->Climactic Top and $5569.18 in Profits | Sami Abusaad
Black Room LessonsSami Abusaad** 2 Video Lessons! Video #1: Sami shows you his favorite reversal bar of all-time. He calls it the “battle bar,” and why he looks for a large range and increased volume to set up the best trades. Next he walks you through how to use the battle bar with other signals such as a gap and a bullish setup to execute a high percentage trade.Video #2:In this lesson Sami shows you his P&L of $5,569.18 and screen shots from the Black Room. He shows you exactly what time he called the trade and how he trailed the profits.This video focuses on how to spot a true climatic top using a “COG” bar, a narrow body bar, and volume. Then Sami shows you how to switch time frames to find the entry with the lowest risk. Join Sami in the Black Room Just $7 for Your First 30 Days Watch today’s lessons then join the Black Room for 30 daysSami Abusaad Black Room
Continue Reading -->Sentiment Report: 100% Happy Traders
Sentiment has been incredibly bullish since early December. It’s common for the market to top out when sentiment gets to extreme levels, but timing trades off sentiment indicators is largely a fool’s game – something made quite clear with the market’s nonstop string of record highs. Stocks just won’t break down, and the dip buyers get rewarded every time. So let’s dig into our sentiment indicators to see if traders are still feeling happy. (click here for a primer on the sentiment indicators below) 1) VIX Spread – Bullish Three weeks ago, the VIX made several intraday lows around 9, indicating that traders expect almost no volatility. The VIX has since bounced around the 11-12 level. Now, on the surface, that may imply that traders are slightly more cautious. However, the curve of the VIX futures term structure is very, very flat. This again means that traders expect near-zero volatiltiy for the next few months. But that’s no surprise since we haven’t had a 3% pullback in about a decade! (okay, it’s not a decade, but it has been more than a year) So it’s no surprise that traders expect more of the same. (click here for a primer on the VIX spread) 2) CNN Fear & Greed Index – Bullish The Fear & Greed Index is at 78, up from 72 last week. This index operates on a 0-100 scale, and a reading of 78 means traders are greedy (or bullish). 3) AAII Sentiment – Bullish Now this is where things get nutty. The AAII Sentiment Survey shows that 45.5% of survey respondents are bullish, down from last week’s 54.1% reading. However, this number has ben elevated since December 14, indicating that individual investors have been getting more bullish over the past couple of months. 4) CBOE Equity Put-Call – Bullish The CBOE Equity-Put Call ratio’s latest reading is 0.56. This is well below the 0.654 long-term average. The 10-day moving average is 0.526, which is extraordinarily low on a historical basis. And the 3-day moving average, which I use to measure very short-term bullishness, is just 0.537. So it’s the same old story I’ve been telling for the past month and a half: traders are buying up call options like they’re hotcakes, and they’re not buying many puts. Of course, that’s been a great strategy because stocks have been so strong. Conclusion Out of 4 sentiment indicators, we have: 4 bullish (flat from last week) 0 neutral 0 bearish On October 6, I made the following melodramatic declaration: Let’s not mince words: the bulls are clearly insane. They think they’re destined to ride into the sunset on a magic carpet made of cold hard cash. I can see both sides of the coin here. The bulls may be insane… but they may also be right. Timing market turns based on sentiment indicators is awfully tricky. And remember, the trend can go on a lot longer than may seem reasonable. And I’ll repeat what I’ve been saying for the last 3 weeks: Well, the trend has gone on a lot longer than seemed reasonable! I can’t remember traders ever being so positive for so long without a single hiccup. When it ends, no one knows.
Continue Reading -->Sami Abusaad: 19 Setups I’m Watching Right Now
In this special video, Nightly Game Plan Moderator Sami Abusaad walks you through the 19 trading setups he’s watching as we head into the heart of earnings season You’ll learn about: The specific level on QQQ which could trigger a pullback The level to which the market could fall The Transition A Buy Setup on CVO The Daily Buy Setup on EURN The Base Breakout Pattern in FCX 16 other stocks Sami is watching right now And more!
Continue Reading -->Trader’s Digest: The 10 Stories We’re Reading Right Now
Wonder what traders are talking about today?We’re here with the top 10 stories we’re sharing with colleagues today, covering topics like:2 Trading Tactics You’ve Never SeenA Major Warning About BitcoinHow to Combine Multiple Time Frames for Profitable TradesAnd more!So check out these links right now and get up to speed: 1) Sami Abusaad: 2 Trading Tactics You’ve Never Seen (T3 Live)In this special webinar, T3 Live’s Sami Abusaad breaks down 2 of his favorite trading techniques, including his #1 micro-trading tactic: Watch the Video -> 2) UBS Chairman Warns of ‘Massive’ Potential Drop in Bitcoin (Fortune)If you bought a Bitcoin in early 2017, when one cost less than $900, you could have a profit of more than 1,200 percent now. But you almost certainly didn’t do that. Read the Article -> 3) A weaker dollar is good for the US, Treasury Secretary Mnuchin says (CNBC)Treasury Secretary Steven Mnuchin said the U.S. is open for business and welcomed a weaker dollar, saying that it would benefit the country. Read the Article -> 4) Ray Dalio: First comes the boom, then comes the bust (Credit Writedowns)The Bridgewater founder’s view is that we are late in the economic cycle and should expect very good things from asset markets. But he also believes central banks will have a tricky time dealing with the consequences. My extended analysis is below followed by the Dalio video. Read the Article -> 5) How to Combine Multiple Times Frames for Profitable Trades (T3 Live)In today’s video, Rob simplifies how to find profitable trades using a simple 2 candlestick setup and then searching for the setup in multiple time frames. Read the Article -> 6) Mexico’s drug cartels, now hooked on fuel, cripple the country’s refineries (Reuters)Drug gangs pressure refinery workers to tap the lifeblood of Mexico’s oil industry. One former worker fled the country. One former gang member helps authorities understand the racket. Read the Article -> 7) How to Spot an Emerging Breakout (T3 Live)Kurt Capra looks over the market and provides some insights on how to stay objective and trade what you see, not what you feel. Read the Article -> 8) BlackRock Bond Veterans Start Hedge Fund Aimed at Cryptocurrency (Bloomberg)Goodbye bonds, hello Bitcoin. That’s the career path taken by former BlackRock Inc. bond specialists Michael Wong and Adam Grimsley who together with a third founder have set up Prime Factor Capital, a London hedge fund that will trade cryptocurrencies from April. Read the Article -> 9) If you’re using an Android phone, Google may be tracking every move you make (Quartz)Biking? Google probably knows you are. Up a mountain? It probably knows that, too. The Alphabet subsidiary’s location-hungry tentacles are quietly lurking behind some of the most innovative features of its Android mobile operating system. Read the Article -> 10) Make Your Bed and Change the World US Navy Admiral William H. McRaven, former commander of the US Special Operations Command, explains why you need to make your bed every day.
Continue Reading -->Sami Abusaad: 2 Trading Tactics You’ve Never Seen
In this special webinar, T3 Live’s Sami Abusaad breaks down 2 of his favorite trading techniques, including his #1 micro-trading tactic: Watch this video and learn:Why you find trading difficult, and why it’s NOT your faultHow to escape over-attachment to money, which can cause big lossesWhy charts alone can’t solve your problemsWhich goals you should NOT have as a traderUnderstand how fear and hope can cause you major problemsHow to maintain an objective state of mind when tradingThe connection between your attitude and your P&LSami’s #1 micro trading tacticHave a question about Sami’s education programs? Call 1-888-998-3548 or email us at info@t3live.com Learn About Sami’s Mentorship Program
Continue Reading -->ROKU Walk Through
On January 22, the following alert was sent to subscribers, before the open; W.D. Gann said the 50% retrace alone was a powerful trading concept. ROKU shows a 50% retrace of the last swing. Additionally, it is in the double down inside position or what I call a ‘crouch’. We are long from last week awaiting the potential turn up. ROKU should react one way or the other today: as the 58 high is straight across and opposite January 20-21 on my Square of 9 Wheel. The combo of pattern combined with a time/price square-out presents an interesting setup on this 1st 50% pullback in a hot new issue. This was followed up on, shortly after the open, with the following: Before the open, we sent a note on a long ROKU setup. Let’s look at this morning’s action. ROKU opened down but quickly turned up triggering an Opening Range Breakout (ORB). Notably, the down open did not violate the ‘crouch’ position. The down open followed by a breakout over the first half-hour’s range is what I call a Catapult ORB. In other words, ROKU pulled back the rubber band to kick off the week and found bids underscoring the viability of the setup. We will complete our pilot long position here at the market maintaining our stop. Good Luck, Jeff With the strength seen in ROKU, we sold half our position at 43 giving us a 2.16 gain. We are trailing the balance at 41. *UPDATE* Yesterday ROKU responded to a turning point mapped out ahead of time. As the Square of 9 below shows ROKU’s 58 all-time high is 180 degrees straight across and opposite January 22. (click here to enlarge) At the same time ROKU showed a 50% retrace of the last swing… offering an idealized long set up in tandem with a flush out of the 50 day line. A 10 min ROKU maps the action. A Boomerang buy signal was triggered following an undercut of Friday’s flat when price knifed back through the flat. An Opening Range Breakout confirmed the idea that ROKU had found bids and was poised for a ramp higher. The little opening decline set the trap door as buyers were waiting. Subscribers initiated a pilot position last week at 40.66 and completed it yesterday morning at 41.02 for an average cost of 40.84. We sold half the ROKU position yesterday at 43 and the balance on this morning’s spike.
Continue Reading -->Sentiment Report: 100% Happy Traders
Sentiment has been incredibly bullish since early December 2017. It’s common for the market to top out when sentiment gets to extreme levels, but there’s no guarantee. And indeed, the bulls have been getting rewarded at every turn since the market just won’t break down. So let’s dig into our sentiment indicators to see if traders are still feeling happy. (click here for a primer on the sentiment indicators below) 1) VIX Spread – Bullish Two weeks ago, the VIX made several intraday lows around 9, indicating that traders expect almost no volatility. The VIX has ticked up around 12. Now, on the surface, that may imply that traders are slightly more cautious. However, the curve of the VIX futures term structure is very, very flat. This again means that traders expect near-zero volatiltiy for the next few months. But that’s no surprise since we haven’t had a 3% pullback in about a decade! (okay, it’s not a decade, but it has been more than a year) So it’s no surprise that traders expect more of the same. (click here for a primer on the VIX spread) 2) CNN Fear & Greed Index – Bullish The Fear & Greed Index is at 72, down slightly from 77 last week. This index operates on a 0-100 scale, and a reading of 72 means traders are moderately greedy (or bullish). So no real change here. 3) AAII Sentiment – Bullish The American Association of Individual Investors just released their latest weekly sentiment survey. 54.1% of survey respondents were bullish, which is well above the long-term average of 38.3%, and a bounce from last week’s 48.7% reading. Two weeks ago, we had a momental reading of 59.8%, which was the highest level since December 2010. 4) CBOE Equity Put-Call – Bullish The CBOE Equity-Put Call ratio’s latest reading is 0.56. This is well below the 0.654 long-term average. The 10-day moving average is 0.549, which is extremely low on a historical basis. And the 3-day moving average, which I use to measure very short-term bullishness, is just 0.51. So it’s the same old story: traders are buying up call options like they’re hotcakes, and they’re not buying many puts. Of course, that’s worked out beautifully for bulls because the market just won’t break down! Conclusion Out of 4 sentiment indicators, we have: 4 bullish (flat from last week) 0 neutral 0 bearish On October 6, I made the following melodramatic declaration: Let’s not mince words: the bulls are clearly insane. They think they’re destined to ride into the sunset on a magic carpet made of cold hard cash. I can see both sides of the coin here. The bulls may be insane… but they may also be right. Timing market turns based on sentiment indicators is awfully tricky. And remember, the trend can go on a lot longer than may seem reasonable. And I’ll repeat what I’ve been saying for the last 2 weeks: Well, the trend has gone on a lot longer than seemed reasonable! Again, I can’t remember seeing sentiment this positive for this long. And I have to imagine the bears are going nuts, just getting grinded out a penny at a time. Remember, picking a top based on sentiment is extremely tricky business… so tread carefully.
Continue Reading -->How to Profitably Trade a Strong Gap | Black Room Lessons | Ifan Wei
In today’s Black Room lesson, Ifan Wei shows you how to capitalize on extreme price action. Ifan performs a trade review of SSRM and gives you a clear strategy for a bullish stock with a bullish gap. Join Sami and Ifan in the Black Room Just $7 for Your First 30 Days Watch today’s lessons then join the Black Room for 30 daysSami Abusaad Black Room
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