Market Recap 1/25-1/26 - Stop Run
Good evening everyone, and welcome to another market recap, here with ma , Janam of True Trade LLC. There was some interesting price action today, and we are going dive into it, and see what we can make of it 👀
The market opened Monday on a gap up, and then we had a pretty step selloff, but if we take a look back at the numbers posted last week, we had a nice retest of some key zones 👀,
Starting with $SPY and /ES. Sunday after market opened we continued to grind higher falling just short of the all time highs,and then just a few moments after open we had a very drastic 65 point flush (3851 - 3788). After that flush we bounced right back into 3846. On Tuesday we had more of the same, after the bounce of the lows , when futures opened on Monday 6 EST , we had a steady selloff , back towards the 3822 level, and buyers stepped in , getting us to new highs before the day closed.
/ES - Hourly Chart
As shown in the chart above, the green circle provides a big buy zone off the 3796 breakout area, we dipped under it real quick, but buyers were strong pushing us right back up. Then if you notice those hourly closes (the first grey circle) we remained above the 3185 breakout area, giving more conviction that buyers were indeed strong and holding. This was a classic, flush and stop operation , where market makers sell us off, right into big support, and where novice traders who entered late in the uptrend got stopped out . This is why it's important to not chase a trend, and know exactly where to place your stops 😎. The second grey circle indicated a higher hourly hold off 3822 which gave s just enough momentum to head to new highs. If you notice the top level off 3846, that has been the highest daily close on /ES , and until we can start basing higher over that , i wouldn't expect to see the market going to much higher. At the same time as long as that 3796 holds, we won't be going much lower either, so here starts our consolidation range for now. As more signs start to develop through the next few days, i will continue to update you guys on market sentiment and what to be looking out for. It was much of the same with /NQ and /YM , although the DOW was unable to make a new high and is sitting well under the key 30925 level. $XLF continue to hold under 30.25 which can be used as a short level, and then $VIX has started to pick up bids again , without making a new low (again keep this in mind , can turn ugly quickly for market if we break some key zones). All in all , market is still bullish, but once again there are divergences happening, so be selective in the stocks you long (there are good long setups) , and be ready for any sudden shifts. Be smart, be patient and don't force any trades, and you will be good !
Since we are recapping 1/25 and 1/26 ill select. basket of plays to review , primarily focused on $PLTR , $ABNB , and $PLUG (2 out of 3 from watchlist).
Monday's Play (1/25):
$PLTR - Off Monday's open , we took some PLTR profits into the highs at 39 , netting a 600% return , and then we had that flash crash with that 65 point /ES drop. Now if you read my weekly watchlist and looked at the key important levels on $PLTR , you would've noticed the "Retrace Play - (buy the dip off 29.05 with stop right there)".
As stated in the post above, we bought the dip off 29.05 (29.56 was low so bought that with stop about 50 cents away). We took off for a solid $6+ move from $29.5 to almost $36 !!!
PLTR - 5 MIN Chart - 1/25
This was the best trade on Monday by far 👀, and I am hoping some of you caught that bounce, (make sure to keep track of the watchlists, there will be another one this weekend 😎).
Tuesday's Play (1/26) -
$PLUG - We had a very , very nice breakup on plug off the open over the key 66.5 level and that gave us all we needed to catch this high flyer 👀.
$PLUG - 5MIN CHART - 1/25-1/16
The 66.5 key level was identified from 1/14 daily close, and viewing a daily chart , we see quite a few touches. We played $PLUG also on 1/ 25 using that same 66.5 key level, where we opened over, went long, and sold into 70.3. After the initial spike at open, we failed with the market and headed back down under 66.5 (our trailing stop was triggered and we kept a close eye on 66.5). Once we got back under 66.5 ,the grey circle highlights how we were not able to get back over, having a poor close. Now off open on Tuesday, we opened back over 66.5, and this gave s or chance for entry ! We were aware of the 69.5-70.3 zone and realized that a break and hold over would send us to new highs , which is exactly what happened. We took some profit into the 69.5 zone , waited for a break, and when we held over we held some $PLUG into new highs. Now that's how you let a runner run 💨.
$ABNB - This was another stock off the watchlist , with our big key level over 175
We entered $ABNB as a small size swing on 1/25 , as we held 175 , and we added in some decent size on 1/26 when we started to hold.
$ABNB - 30MIN CHART - Till 1/26
As seen above we had a small downtrend on 1/25 after the initial morning spike (since we swung ABNB as well from 1/22 we sold some into the morning spike and then looked for areas to re add as we held) In this case we got a quick flush midday , and then when we started to base we started adding off 180 and 176 with stop placed under the blue line (175.54). On 1/26 at open we held 175 and got a nice up move holding over 180, some good reason to add. Then we made a push higher, began to base and hold, and we closed the day at new all time highs ! (We took some profit, but we are looking for more).
I hope some of you were able to catch this one as well off the watchlist this past weekend ! $NVDA and $TTD haven't done what i wanted off the list , but i will evaluate those and recap those in next week's watchlist breakdown !
Hope you enjoyed the read, and have been having fun in these quick paced markets ! If you have any questions don't be afraid to drop them below or message us on our social media (linked below)
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Hope you all have a wonderful rest of your weekend, and a great upcoming week :)
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