Recap: Sabato's Market Watchlist 9/27-10/1
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This week's watchlist went 4 for 4 on the main watchlist and 4 for 4 on the bonus plays! What else do you want from me??? 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: $AMD, $LULU, $ZM, and $SBUX. Bonus plays: $TSLA, $BA, $NKE, and $F.
1. Advanced Micro Devices: $AMD
Why I picked this trade:
$AMD was establishing a range. I was looking for a break of this range. Also had a higher lows forming.
Here's what happened:
9/27 AMD bounced right off support as I indicated and ran up to $108.3
9/30 AMD opened below a key level and continued down below trend and 103.75
30 min chart:
Daily chart:
How I would execute the trade:
On 9/27, calls coming into the 103.75 support would have been a great play to enter once we got the breakout above the 5 minute candle which found support on 103.75.
On 9/30, puts would have been great to enter on the break of the downtrend/wedge to the downside for an early entry. For further confirmation, you could have waited for the break of support at 103.75 and rode puts down to 101 area.
2. Lululemon: $LULU
Why I picked this trade:
$LULU proved the established range from $414 (downside) to $434.2 area (upside) to be valid. I liked calls above $435 and puts below $414.
Here's what happened:
$LULU opened with weakness and flushed out to close the day 9/27 almost EXACTLY on $414.35 support area.
We broke below support, closed below 21 SMA and fell all the way to 50 SMA @ ~$400!! Huge downside win.
Daily chart:
30 minute chart:
How I would execute the trade:
Puts would be on the radar after a weak close 9/27. With an open below 9/27 lows, I would be bias for the downside and enter with the break of $414 for a safe play, break of $420 to get in early. Since this was based on a daily, I would enter with confirmation of a close below these levels on a 30 minute chart.
3. Zoom: $ZM
Why I picked this trade:
$ZM closed below daily support at ~274. There is not a ton of support for Zoom until $266-267 area, which is where it was bought up on Friday 9/24. I favored the downside if the brief consolidation zone could not be recaptured.
Here's what happened:
$ZM ranged between $274 and 266.2 on 9/27. Calls off 266.2 valid
We then rejected $274 EOD (end of day) 9/27 and gapped down overnight into 9/30.
We finally broke below $266.2 on 9/28 and even offered reentry for the downside on 9/29 with a rejection of $266.2 again
Daily Chart:
30 min chart:
How I would execute the trade:
Calls off $266.2 on 9/27 once the breakdown candle leading into 266.2 was recaptured for a scalp up until $274.
Puts on break of 266.2 support (30 min close under).
4.Starbucks: $SBUX
Why I picked this trade:
$SBUX was making higher highs on daily. I favored the upside with break of $115, but we didn't get the break. Instead, I liked break of $113 on the downside, and we did get that!!
Here's what happened:
$SBUX rejected $115 on 9/27
We then gapped below and opened below $113 on 9/28, presenting an opportunity for puts down into the 200 SMA around $111.
Daily chart:
30 minute chart:
How I would execute the trade:
Plan for calls was void.
Puts presented an opportunity once we opened below $113 all the way down to $111, which is where the 200 SMA is sitting. You can see the clear buy up on Tuesday in the 30min chart above around $111 area. I'd enter puts at open on 9/28 and ride down to 111, which would have been my second target ($112, then 111).
Bonus plays:
$TSLA: Calls above $780.5 for the win!!
$BA: broke above $223 (finally!!) for the win!
$NKE: Kept moving down and found support on 200 SMA for the short win!!
$F: Almost reached $15 before a rejection, but nice play for calls on break of $14 on 9/27!! WIN!!!!!
All winners this week.... what are you waiting for?? Share this with friends!!!! And join the discord for FREE!!!!
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/Bsement_Finance