Recap: Sabato's Market Watchlist 9/20-9/24
Welcome back everyone... or really to all 11 of you... I'd appreciate if you like, share, comment, etc. as a lot of time is allocated to helping you guys become better traders. I like to focus on being genuine and helping people, not getting rich and flaunting it on social media. Trust me, I'd much rather people learn from me, which alleviates financial stress in their household versus see my luxuries (which I don't have anyway hahaha) and just feel worse about themselves because they think, "why isn't that me?" My goal for myself: financial freedom. My goal for you: become better traders, and become financially free as well.
Alright... I'm off my soap box.....
This week's watchlist went 3 for 4 on the main watchlist and 2 for 2 on the bonus plays! Our members made some great profits again this week. Hope you caught some off the watchlist, too! 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: $Z, $LULU, $NKE, $PLUG. Bonus Plays: $TSLA, $BA
1. Zillow: $Z
Why I picked this trade:
$Z was in a falling wedge pattern and found support off $90 area twice. For upside, I wanted a break above 21 SMA and $98 area would confirm further upside. On the downside, I wanted a break below the bottom of the buy zone at $90.
Here's what happened:
$Z rejected $98 twice
We then found support once again @ $90 at the close on Friday 9/24.
30 min chart:
Daily chart:
How I would execute the trade:
This trade was void because I was looking for the larger move above $98 or below $90. I did not take this trade, but moving forward, those levels are confirmed further.
How it played out:
My plan for a breakout was void. Scalping puts off resistance (intraday) would have been profitable.
2. Lululemon: $LULU
Why I picked this trade:
$LULU established a range between highs and 414 area. I was looking for a break of either key level shown below, or play this between the levels listed.
Here's what happened:
$LULU found support off $414 on Monday and made new highs on Thursday 9/23
We then rejected the new highs and closed below previous highs
Daily chart:
30 minute chart:
How I would execute the trade:
There was an opportunity to trade calls off support of $414.35 area on Monday. We then held this and made new highs. I would not have considered the downside as the previous days lows were held all week leading up to the new highs.
How it played out:
$LULU made new highs on 9/23 after finding support on $414 area. This took a few days to work out, so a swing was necessary and warranted by the fact that lows the day before were held.
3. Nike: $NKE
Why I picked this trade:
$NKE has been in a downtrend since hitting highs. It had that massive gap up last earnings. Earnings were last week, and I was watching how the gap played a role, and if the downtrend continued.
Here's what happened:
$NKE held support at $152.5 area and broke the trend on the upside before earnings
Earnings were released and Nike reacted negatively on 9/24
Daily Chart:
30 min chart:
How I would execute the trade:
Once Nike broke and closed above uptrend on 9/22, the upside was favored for a quick trade 9/23. After rejection of $160, SL should have been triggered and a successful trade has been birthed :). I'd make sure all positions were closed before $NKE earnings call took place. After earnings were announced, the gap down below support zone was a good opportunity to buy shorts on the initial buy up before the continuation down.
How it played out:
Nike could have been played both ways per the above paragraph.
4.Plug Power: $PLUG
Why I picked this trade:
$PLUG had nice volume and break on 9/17. I was watching a break of $27 area and a rejection and consolidation.
Here's what happened:
$PLUG opened above and held the downtrend/falling wedge
$PLUG continued above the 21 SMA and broke above resistance at $27.3
Daily chart:
30 minute chart:
How I would execute the trade:
After breaking and holding the downtrend, I'd enter calls off the retrace to the downtrend from above on Tuesday 9/21. There was also an opportunity to enter calls on 9/22 on the retrace back to over night lows. Profits would be taken at the intervals based upon previous days highs and the levels above.
How it played out:
$PLUG upside played out very nicely.
Bonus plays: I unfortunately did not get any interaction on this post... you guys are making me sad :( Here's the bonus plays recap regardless....
For some one on one advice, join the discord and DM me (Basement_Trader_Cheap) and tell me personally what your struggles might be when it comes to TA and trading in general. 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 $760 on Friday for a nice run to $774.
$BA FINALLY broke 217 and ran up to $222.3
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