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.
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!
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.
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:
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