Recap: Sabato's Market Watchlist 8/16-8/20
Welcome back everyone! We had another great week at True Trade this week! Members reported mucho dinero in profits this week. How do I know this? Well, because I'm in the discord. You should be too. Click here to join.
In this blog, I will get into some further detail about why I picked last week's trades, how I would execute them, and how they played out. Let's get into it!
You can review the watchlist blog here. If you want to skip down to a certain play, click the corresponding link: $AMD, $AAPL, $EBAY, and $NIO. Bonus Plays: $MSFT, $ZM, and $TSLA.
1. Advanced Micro Devices: $AMD
Why I picked this trade:
$AMD established a support zone at $105.9-106.4. It had been on a tear then pulled back and established this buy zone.
Here's what happened:
$AMD rejected off a key resistance, but held the buy zone, presenting an opportunity to scalp calls off the buy zone
$AMD also opened above the buy zone 8/17/21 and presented a $3 move for calls
Once below this buy zone, $AMD stayed below, furthering it's validity as an important zone.
5 minute chart:
How I would execute the trade:
If I was bullish: I would wait for a dip to the buy zone and buy calls one the buy zone is held once. On the second dip to the zone, buy calls as long as selling volume does not increase dramatically.
If I was bearish: Buy puts once the $109.7 level was closed below OR wait until buy zone was closed under on a 5 min for scalps, 30 min for longer plays.
How it played out:
Scalping calls off the buy zone would have worked. Prime example of why you need to trim profits and have a trailing SL here because AMD eventually fell below the buy zone.
Puts below $109.7 and the buy zone would have played out great!
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2. Apple: $AAPL
Why I picked this trade:
Apple had been consolidating after making new highs. A range had been established.
Here's what happened:
Apple broke below buy zone and found support off a key level then shot to new highs
Entry on break of highs was the planned play, although we did find support below where we expected
5 minute chart:
How I would execute the trade:
My set up would have faked me out, but I would have planned on reentry once we broke back above key levels. This would be because of the large amount of buy volume.
How it played out:
The buy zone was a bit lower than my TA led on, but new highs were made if you were patient.
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3. eBay: $EBAY
Why I picked this trade:
New all time highs were put in. Looking for a continuation after a slight pullback.
Here's what happened:
New highs were made right off indicated level of $73.6 after the price stayed steady overnight. Had the price fallen, a out of the gate spike in the morning would be less likely.
5 min chart:
How I would execute the trade:
Calls right off the open above $73.6 and sell once in the green my % goal. Tight trailing SL since there are no proven levels up here.
How it played out:
I think you guys know how it played out from the chart above....
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4. Nio: $NIO
Why I picked this trade:
Nio was showing weakness coming into support. Could bounce or could break below, retest, and continue downward.
Here's what happened:
Nio gapped down below the buy zone, retested on Wednesday, then rejected again, presenting 2 short plays
Daily chart: Note this screenshot includes 8/23 and 8/24
How I would execute the trade:
I would have either waited for an intraday retest of the buy zone on Monday or entered puts on Wednesday on the retest for a larger move down.
How it played out:
Simple: Shorts printed.
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Bonus plays: I want to try to promote some interest and interaction; I want to see who read this far. If anyone comments their favorite color, I will do a recap on the bonus plays when really I want you to put in the work and see how they played out. Regardless, comment below if you want recap on bonus plays! Even better, join the discord and DM me (Basement_Trader_Cheap) and tell me personally.
Until next time (sorry, I'll be more timely. Work has been time consuming!)
- Sabato
That's if for this recap. I hope this helps you understand my style more and explains my methods. It was a great week for call outs! Join our discord for free. Let me know you saw this post! Check out past watchlist @ https://www.truetradellc.com/blog/categories/watchlists to see if any plays are still live or if the levels truly work 👀 ** THIS IS NOT FINANCIAL ADVICE** I can do this on and on for every stock , but the best way to get them live is by joining the chat ;) https://www.truetradellc.com/stock-signals-membership Email: truetrade1313@gmail.com Instagram: https://www.instagram.com/basement_financials/ Website: https://www.truetradellc.com/ Twitter: https://twitter.com/TrueTradeLLC1