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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: