Recap: Sabato's Market Watchlist 8/23-8/27
Welcome back everyone! We had another great week at True Trade this week! I had been a bit absent due to work this week and did not get a formal watchlist up, BUT I still want to do a recap on the picks I sent out on Instagram and Discord.
In this recap, I will get into some further detail about why I picked last week's trades and how they did.
If you want to skip down to a certain play, click the corresponding link: $BA, $SQ, $NVDA, $JNJ, Bonus Plays: $DG, $PFE, $MSFT.
1. Boeing: $BA
Why I picked this trade:
$BA had resistance at $217 area and had just gapped down. I was looking for a gap fill off support and break of that $217 area.
Here's what happened:
$BA had a nice gap and go on Monday 8/23. Giving this pre market activity above a key support and before a key resistance, calls at open would have worked nicely. I'd look at a 5 min chart with pre/post market displayed help me make this decision premarket (look below).
This daily candle on Monday closed just above the top of the gap down at $219.06. This is a good indication to watch if it hold the next day (which it did another mini gap and go)
Side note: Gap and go = a nice hefty gap (up in this case) from the previous day's close at the open of the next day and a strong continuation in the direction of the gap.
Side note to side note: this gap and go idea happened on the gap down as well...
5 min chart:
Daily chart as of 8/27/21:
How I would execute the trade:
The gap and go on Monday: Calls at open into the $218 and $219.06 level as a targets. Ideally what for a pull back on the 1 minute to VWAP, but that usually doesn't happen when large volume is present that quickly.
If that play was missed, I would move on to my next play. At that point, I'd be emotional. I'd realized resistance was put in at $222-223 area. Break of that would be a nice break up to $226.3 (hint hint). Comment below if you read this nice play for next week! Or DM me on Discord/Insta!
How it played out:
Calls would have been great, plus $217 held. Even swinging calls on break of $217 would have profited!
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2. Square: $SQ
Why I picked this trade:
$SQ had a nice engulfing bullish candle on Friday 8/20 and held $256.6 last week.
Here's what happened:
Square was another huge gap and go to the upside. To avoid boring you again, same process as above would be followed.
We did hold $262.5 end of this week, which presented some quick scalps Thursday 8/26 and a nice play Friday 8/27. These are shown below.
5 minute chart, gap and go:
5 minute chart, Thursday scalp and Friday play:
How I would execute the trade:
Gap and go: Calls at open once key level was gapped above. Again, ideal entry is off retrace to VWAP or key level it gapped above.
Scalp Thursday using $262.54: Here, you'd have to wait for a recapture of that level to enter a full position. You could enter calls coming down into this level, but keep a tight SL. Keep it Tony as I like to say.
Friday: Strong open, retrace to $262.54, enter, ride the wave using levels show as targets. Keep trailing SL and take profits along the way.
How it played out:
Goes along with above... those plays played out great if you read the condition of the stock at those times.
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3.Nvidia: $NVDA
Why I picked this trade:
New all time highs were tapped. And tbh, $NVDA is just a monster.
Here's what happened:
$NVDA again was a gap above all time highs and go until the moon evidently. We stair-stepped up the rest of the week.
Daily Chart:
How I would execute the trade:
I'm a broke record, BUT I'd again get calls at open and hope for a bit of a pull back for a good entry. If not, be patient! if you chase the momentum, which I do not recommend, you must take profits early and often. Bad habits can be created by trading this way imo.
How it played out:
I think you guys know how it played out from the chart above.... again.
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4. Johnson & Johnson: $JNJ
Why I picked this trade:
$JNJ made new highs and I was looking for continuation.
Here's what happened:
$JNJ broke support and didn't look back, voiding a long play (aka calls).
I avoided this as there was also some news about $PFE COVID-19 vaccine being approved by FDA, but mainly because my upside plan was no bueno.
Daily chart:
How I would execute the trade:
This trade was void.
How it played out:
..... it did not. But you'll have that sometimes. I'd be interested to see if we find a base here at $172-173 area like we have in the past
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Bonus plays: Again, 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. I did have a new member do this... and I won't speak for them, but it was beneficial for the both of us. Advancing in your craft hinges on networking and constant learning. The sooner you are aware of this, the faster you will advance.
BUT: $DG we profited from off big gap down on earnings. We scalped some calls.
$MSFT: Got a beautiful retrace off $297 today 8/27.
$PFE: Died off... did not get positive reaction from good news.
Until next time....
- 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