Welcome to the first of many market blog posts !!! The format will remain simple , the first paragraph will go over my views on the indices followed by our plays of the day (posted and taken daily in our True Trade discord service - (check stock signals membership for more info), and on special occasions , a tip or setup of the day.
SPY, the ETF for S&P 500 opened within the same range over the last few days, it had been struggling to hold 379 the past few days , but got over it in the first hour today and continued to hold all day long. Holding back over that 379 was a good sign for the bulls, as we grinded higher falling about $1 short of all time highs. As im writing this post the /ES futures are trading higher , and they might look to make a new high overnight or tomorrow if 379 holds . With that being said , I would still be very cautious on the long side and not get to euphoric and start to chase with the mentality of "stocks only go up". As traders our goal should be to take good risk reward trades, and from where i see it , looking to be long in SPY doesn't offer great risk reward. I am actively watching for signals to start a potential reversal in the market, but as of now, the trend is up and there's nothing technically wrong with the charts.The 376 zone is a big key zone for SPY where buyers have continued to step in the past few days, getting under and holding under would definitely be a great sign for bears, While SPY grinded higher, IWM, SMH both failed to make new highs (just something to keep in mind). The tech sector gave a nice market bounce , but still is a ways off from its highs, and is relatively weaker then SPY, and VIX remained above its lows, volatility should start coming in within the next few weeks , so just continue to be cautious , active and smart with all your positions.
TRADES OF THE DAY
Now going into some of today's morning watchlist plays, a few I had on the board where PTON, DASH, BLNK, ABNB and TSLA.
(all of these were given to members BEFORE the market opened---- 7:10 AM MST )
Of course it's pretty difficult to take 5 trades right off open in the morning, especially with option fills, so ill review the ones I didn't take first and then go in depth on my favorite three for the day
The ones I did not take:
TSLA - Tesla was as very choppy off the open, but once it got under 856 , it had about a $22 sell into 834 low of day , giving a very good trade for those who took it .
BLNK - Blink opened under the key level and dropped down just under 50, giving another $3 short opportunity.
Now the three bigger plays of the day all went well : ABNB- It didn't open quite at the support buy I would've liked, but it broke 163 a few minute into open and showed no signs of slowing down after the fact. 163.02 was the key level identified from the highest daily close (12/21), getting back over that and holding solidified the presence of buyers and then it made $15+ move giving us a new all time high . (Free play for those reading - if ABNB can hold back on dips to 163 , can give a great bounce play ) PTON- Another great one we were able to play out. It opened over the 155 level and jumped right into 158 . Again ideally I wanted a fill close to 155 but we opened up and held the opening price of day. Once i started to see buyers stepping in over 158.8 it was a great sign for continued momentum back into new highs. 158.8 was a key pivot made 2 days ago on PTON's up move and this also made a new all time high hitting 169 , about $11 + from entry. DASH- Doordash was a great long opportunity on tuesday after the company had positive expansion news for getting into Japan , and offered great volatility and great volume for continuation trade today. On 1/12 DASH closed on a new all time high over 189.5 and that became the key level to watch at todays open. Holding that level off the morning dip gave us a great opportunity to go long and catch an almost $25 + move from the 189 lows to the 215 HOD . - again all these plays were posted in our discord server before open , and we alerted live alerts throughout the day with exact entries and exits (if your interested come check out our free one week trial !!!)
TIP OF THE DAY : HOW TO CATCH A RUNNER FOR NEW HIGHS For the most part DASH and ABNB offered great trade opportunities due to being relatively new IPOs with news hype, while PTON gave us a great opportunity on a key level break flooded with volume. When your looking to catch a runner , you want to identify the key level, time your entry, consider the probability of the move and the R/R. For this example we will use DASH.
As mentioned earlier DASH closed 1/12 at a new all time high close (meaning this was the highest daily close DASH ever had)
In the picture above , we see that the highlighted candle on 1/12 closed over the former ATH close and this gave us our first signal of more upside to come, closing over a key level ( the highest daily close will always be a key level) . Then after we get that key level close ,we now look to time our entry on 1/13. And as shown in the image below, we dipped into that 189 buy level a few early moments on that day.
Once we get our entry we can use the ATH as target 1, and then just use a trailing stop on a 30 minute time frame to see how high we can continue to run.
There's the recap from today, and a nice little tip that could help you catch your next runner 👀. If your interested in learning more about us check the rest of our website, and if you have any questions , shoot us an email or message us on Instagram ! Email: firstname.lastname@example.org
Instagram: Truetrade_LLC Have a wonderful day and week everyone !