Recap: Sabato's Market Watchlist 8/30-9/3
Updated: Sep 12, 2021
Welcome back everyone! We had another great week at True Trade this week! Hope the long weekend is providing some well deserved R&R for everyone. We produced a a profitable week yet again for our members, and I hope some of your also got in on the action. Check out the watchlist here.
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, $FB, $AMD, $MARA. Bonus Plays: $TSLA, $ROKU, $NFLX, and $DKNG.
1. Boeing: $BA
Why I picked this trade:
$BA has strong resistance in the $223 area. BA has not been able to break this resistance, and it has also held the $216.2-217 area as support.
Here's what happened:
$BA rejected $223 again out of the gate on Monday 8/30.
We found support off the daily trend/$217 level.
We made a run at $223 again on Thursday 9/2, but rejected $223.7
We continued consolidation between ~$217 to $223 range.
30 min chart (pink line is VWAP):
Daily chart as of 9/3/21:
How I would execute the trade:
The best set up in my opinion would have been the short off $223 area on Thursday. This had proven to be an area of resistance, and BA was not recovering enough to favor the upside. I would have entered puts coming into $223 with a stop placed at a $224 area just to keep it tight since the market is at highs. Posted levels would be targets on the way back down.
How it played out:
$BA offered a nice short Monday morning. Also, the bounce off daily trend Tuesday morning offered nice entry for calls. Again, the best play based on TA and price action would be what I mentioned above.
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2. Facebook: $FB:
Why I picked this trade:
$FB had a nice bullish engulfing candle (see Instagram for explanation) to close the day Friday, 8/27. New highs were within grasp!
Here's what happened:
Facebook made new highs off support!
30 minute chart:
5 minute chart 8/30:
How I would execute the trade:
On Monday 8/30, FB fell below then recaptured $372. Once $372 and VWAP was recaptured, I'd enter calls. I would then trim position at $375 and set SL to break even at the most!! I set my SL at some profit, usually ~10% (at least) of contract value, just so I ensure more profits. I would then trim position coming into all time highs, then leave one runner and take profits when I wish while keeping a trailing SL.
How it played out:
FB bounced right off support at $272 area. We had to be a bit patient and let Facebook recapture support and VWAP for entry, but we came into new highs with ease!
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3. Advanced Mirco Devices: $AMD:
Why I picked this trade:
AMD held 109.4-110.9 area of support. I was looking for a continuation upward.
Here's what happened:
$AMD came out of the gate strong on 8/30, but rejected ~$115 and broke support to the downside.
Daily Chart as of 9/3:
5 min chart 8/30:
How I executed the trade:
I did take this trade on Monday; however, I did get stopped out on the break of support at $112.5.
I did not chase the initial surge after the bell. I waited for a retrace to support at $112.5. I entered coming into $112.5, and we did get an initial bounce, but failed to get back above the VWAP on a 5 minute chart. Once this happened, I had my SL set if we broke 112.5 and closed a 5 min candle below. This is exactly what happened, so I got stopped out.
How it played out:
I took a small loss on this trade as AMD never recovered from the $114.5 rejection.
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4. Marathon Digital Holdings: $MARA:
Why I picked this trade:
$MARA broke above and held daily resistance zone around $39.
Here's what happened:
$MARA continued upward to ~$45!
We bounced right off support at $37.8 and did not look back!
Daily chart as of 9/3:
5 minute chart as of 8/30-9/2:
How I would execute the trade:
Once we found support on 37.8, I'd look for the buy resistance zone (green) to be broken and held. I'd then enter calls on a break/retrace to the top of this zone around $39. This would have been a slow mover because the TA was mainly based on a daily chart. With a close above $40, it would have looked great to swing. I would have trimmed some profits at end of Monday, then swung a remaining position. I would then want a hold of overnight lows/top of resistance turned support to remain in trade. I would then take remaining profit off the table at $41.2. As always, have a trailing SL and at the worst case, have a break even SL once the trade goes green.
How it played out:
We held lower support, broke resistance, and held the resistance turned support into ~$45 for a nice $7 move for the week!
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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 investment vehicle for retirement, 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. Advancing in your craft hinges on networking and constant learning. The sooner you are aware of this, the faster you will advance.
BUT: $TLSA: Broke $720 and continued
$ROKU: Had a really nice run up to $375 (took some time to get there)'
$NFLX: Flew up $30 once we broke above previous resistance
$DKNG: Rejected 60.4 on a daily, but presented some scalps.
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