Huge Wins This Week - Trade Ideas Cashing In
Markets made new all-time highs while both long and short trades were working.
So many trades are working out, you have to appreciate the opportunities we have been getting in this market.
I’m taking my time reviewing all twenty-one of my watchlists (they’re basically by sector) before bringing forward the next round of trade ideas. I like to do this at the start of every month.
We are experiencing quite a run and there is a lot of money to be made!
Let’s take a look at a few charts.
M Shorts Print Money
Macy’s was hugging the trendline but broke support and dumped. This trade was detailed for upgraded subscribers as a breakdown trade consideration.
Every profit target was hit on day two and these puts still have six weeks to go. We could see a double bottom and bounce, or 17.14 could break and more gains could go to the shorts.
I’ll highlight more profit targets for this one in the next round of trade ideas.
MCD Rejected
Another win for those looking to trade puts came with this rejection at resistance for MCD.
Shares have steadily dropped.
Price targets are still in play, but we could see some slowing down and even a few buyers stepping in after this orderly pull back.
Here’s the callout of this short trade consideration from last week.
I almost always post both long and short considerations for any ticker I am trading and do not enter the trade until the trigger level is crossed.
Even in a market making new highs, short trades have been working if you know where to look.
TWLO and SCHW
Trading will keep you humble and the short trade for TWLO did exactly that.
The set up showed up with a clean rejection at resistance and a second daily candle moving lower. It made sense to get in puts.
Then a huge pop to the upside came and you were lucky to get out even.
The second of the two tickers we had trade ideas for on Monday was SCHW.
This trade is working nicely and I like the odds of more upside.
Congrats if you got in the SCHW trade, you still have weeks to go before expiration. Remember to take profits and leave runners!
Energy Breaking Out - XLE, PXD, & LNG
Energy finally making a move with XLE breaking above strong resistance near 86.
Finally getting a strong close well above this level, I am looking to keep trading for updside in this space.
We had a huge win with VNOM and that was just the beginning.
Take a look at this chart for PXD which broke out last week.
After rejecting multiple times the breakout has finally started and profit targets should have automated sell orders ready to go.
The other recent energy trade idea was with LNG. This one is still trading in its wedge and has not yet broken out. Keep an eye on it.
XBI and SMH
Now we get to the sector ETFs and one that we traded.
XBI is the biotech ETF and it’s chart above shows the breakout last week which has left shares consolidating at a much higher level.
It even paused a bit, holding above resistance and allowing you to buy calls before getting on a rocket blasting through 100.
The 94.00 strike calls are now $7.75 in the money with two weeks to go until expiration.
This is the kind of trade that can make your whole month amazing. Congrats to you if you got in XBI. Fantastic trade!
Healthy Markets
The above chart is for a semiconductor ETF, SMH, which has been powering higher and higher with no signs of slowing down.
This can be a scary sight if you think the market is getting extended and being carried by a few names or only one or two sectors.
Instead, we see a lot more than that.
Adding to the strength seen in the chips sector, industrials are also making a strong push to the upside. You could call it relentless.
Here’s the chart for XLI, an industrials ETF.
With big tech names like AAPL and GOOGL not keeping up with the rally and sectors like industrials showing strength, I am bullish and expect higher highs even from here.
One thing is certain, not many are heading for safety which you can see by looking at a chart for utilities. This is XLU.
Until this trend breaks, traders and investors are willing to take on risk in search of more gains.
It is safe to say that my bias is for more upside. You can be sure that I will maintain a balanced approach with trade plans for both directions.
I hope you enjoy the weekend. Trade ideas coming in hot tomorrow!
-Nate
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Wow I’ve been so busy the past month with my own endeavors, haven’t had. A chance to read as much and boy did I miss out. Congratulations sir! Well done definitely an inspiration and will be adding some of these names to my watchlist as well