I don’t know about you, but it was a great week of trading. And I can’t wait to get back at it tomorrow.

My short play in IIPR flipped a +50% winner overnight…

…same goes for my LGIH puts…

… did I mention my 100% winner in PAGS?

Look, I get it. Many of you can’t find trades like these on your own. Otherwise, why would you be reading this?

So let me give you some help. I’ve got three trades on that I want to share with you.

Akamai Technologies (AKAM)

Few charts get me this excited. I’ve played with AKAM several times in the past month. The last TPS setup worked out tremendously well.

Right now we have all the elements for a long play. No one would argue the stock’s uptrend. You can actually see the consolidation with the naked eye… which leads to a really long squeeze.

Last week I began building a position. I want to see the stock break out above its recent highs. With the time it’s spent consolidating, this could be an explosive move.

AKAM daily chart

This isn’t one I’ve been shy about. In the Weekly Money Multiplier live training sessions, I worked through my analysis with members.

Several asked about the one day drop it took down to $87.71. I actually used that opportunity to add to my position.

Members got the following notice to help them understand how and why I took the trade.

Activision Blizzard (ATVI)

Over the past few months, I’ve been in and out of this stock. Even last week, I played a butterfly spread for expiration week. It worked out beautifully, letting me close the trade early for 70% of max profit.

Earnings come up on November 7th. That gives option premiums an extra push the closer we get. Implied volatility rises for stocks as they approach earnings… it’s also a key pricing element to options. Rises in implied volatility = rise in option prices.

So, can I play a bullish setup here?

Friday’s price action looked a bit dicey. The stock rolled over but still closed well off the lows.

Also, the moving average crossover concerns me. I don’t like the 13-period moving average crossing below the 30-period moving average. That indicates bearish sentiment.

Still, the stock sets up with a good risk to reward profile here. The play relies on a few elements:

1. The TPS setup – We clearly have the trend and pattern along with a squeeze on the daily chart.
2. Price holds the lower trendline – The stock needs to hold the trendline pattern. Otherwise, it will release to the downside. I want to use daily closes to activate my stop.
3. Get in and get out – This trade needs to finish before earnings. Implied volatility implodes after the announcement. You also get wild stock movements. That leaves you with little more than gambling.

ATVI daily chart

Campbells (CPB)

This stock really hit the mark for me. Price made a nice bullish uptrend for several months. While it wasn’t immune to broader market pullbacks, they lasted only a short while.

Otherwise, the stock continued to make a consolidation… push higher… consolidation… push higher.

The setup contained all the critical elements I look for.

1. Trend–CPB rose consistently over time on the chart. If you drew a line on the daily chart from the starting price to the current price, you would move up and right. This designates an uptrend.
2. Pattern – I prefer using consolidation patterns for my TPS setups. After making a swing high, price kept finding resistance at $47.23. The lows of each day kept moving higher. This created a triangle formation. This indicated price was squeezing together to make a larger move.
3. Squeeze – Squeezes make trades likely to create explosive moves. My squeeze indicator looks for the Bollinger Bands to trade inside the Keltner channel. This indicates price tightening up. The release creates a powerful move, pushing price out of the trading range.

CPB daily chart

I’ve already taken half of my position off for a really healthy profit of just more than 50%.

You may wonder why I didn’t take off the full position. Ultimately, I wanted price to reach closer to $50.

However, I actively scale in and out of my positions. This lets me lower the average cost on the front end, and maximize my gains on the back end.

Several members analyzed and discussed the trade with me in the Weekly Money Multiplier commentary. I want them to understand what to look for in each trade, how to structure their entries and exits, as well as make the trades themselves.

One member even turned up a profit pretty darn quick… like within 24 hours of entering.

Want even more trades?

This makes up just a fraction of the trades I take each week. In fact, I’ve had dozens of lottos and daytrades that I walk through in real-time.

Trading doesn’t have to be hard. I help people like Jeffery learn to trade and make growth their accounts quickly.

Invest in yourself.

Click here to join Weekly Money Multiplier

Source: WeeklyMoneyMultiplier.com | Original Link

Some of us hate the weekends. I know that sounds crazy to most nine to fivers. But for traders the weekend means time away from the market—a period where they feel alive the most.

The close to the trading week can be bitter sweet. However, it can be long and dreadful if you catch yourself making a bonehead mistake on the last day of the week.

As someone who struggled at trading for eight years, I have my fair share of stories of trading blunders I’ve made.

But the last thing I want is for you to experience that pain.

That’s why I’ve laid out some guidelines on how to handle trading Fridays. They include some of the most common mistakes that traders make and how to eliminate them.

— RECOMMENDED —

Introducing the brand new Weekly Money Multiplier… starring Nathan Bear

“I need to let you know I listened to your advice and focused only with Nate Bear setups and studied his material with my under 1K account. The month of May I was green $425 or 17% with 7 winners and 2 losers. This was my first green month this year.” ~ Dan

JOIN NOW

Watch for Friday shuffles

Most of us can’t wait for the weekend. Wall Street isn’t much different…or that’s what they want you to think.

You would expect traders to cut out early… not a lot of volume. Except that’s not how it works out.

Below is a table for the SPY average % change (absolute) and average volume by day of the week.

It’s true, quite often you’ll see light volume on Friday’s for most of the day. However, from time to time, you get extremely outsized moves both in volume and price change.

This doesn’t happen often. However, it’s exactly why I try to play light on Friday.

That said… if you manage your risk, there can be great day trading opportunities.

It’s common in volatile markets to get a midday reversal from a selloff. You can use reversal candles to take long trades in market ETFs and stocks.

I saw a perfect example of this last Friday. The 5-minute chart made a reversal candle during lunch at a key level. The SPY traded higher from there through the end of the day.

SPY 5-minute chart

But, notice the last 5-minutes of the day. Volume jumped aggressively, snapping the uptrend and pushing the market lower.

Conserve new long option trades

Traders buy options to leverage their money. As soon as you enter this trade, time is working against you.

So why would you enter a trade where you immediately lose two days of price action?

I want the markets to be open and active for my long trades. This creates more opportunities for your option to money.

On the flip side, selling options on Friday isn’t too bad (especially before long holiday weekends). You get free days of no trading, which works in your favor.

Close expiring options

I can’t tell you how many times I made this mistake. You get so giddy about a long option that’s so far in the money you forget to close it.

Next thing you know…your broker charges you an exercise fee.

I know it sounds silly, but double-check your expiring trades. Here’s some easy tips:

Long trades – Close any long put or call trades before the close. The spreads tend to widen right near the bell. Get out 5-10 minutes before close, and you’ll be golden.

Also, look at closing long options at the open. While the market tries to discover price, you can sometimes slip in a sweet option order that fills at great price. Then, enjoy the rest of your day.

Short trades – Let any of your winners clearly in-the-money expire worthless. However, some brokers will let you close trades for free if the option is less than $0.05. If you get this choice, take it. Take it from me… it hurts so much to have a trade at 90% profit become a loser.

I look to the charts for spreads near breakeven or just profitable. Treat them like you would a short-term day trade. Look at what the charts say, and make your decision accordingly.

Try to close spreads nearing max loss as early as possible. Your goal is to save any dollar you can.

Walk the walk

I’m not one of those guys who gives you advice without backing it up.

Last Friday, I played followed this exact plan. I sent the following email to members of Weekly Money Multiplier.

I told members:

1. Don’t trade same-day options
2. Take profits for the week and go home happy
3. Come into Friday light (for me this was 85% cash)
4. Keep an eye for a day trade, but don’t actively seek them

The market’s volatility created great trades throughout the week. I’d done remarkably well. There was no reason not to walk away when I was so far ahead.

A great example of a Friday close was DOCU. I’d already captured a ridiculous move on the stock. When you’re up over 100%, why push the envelope?

In fact, I intentionally spent little time in front of the screens on Friday. I didn’t want myself or Weekly Money Multiplier members to wreck a good week.

The best part was members who analyzed the trades on their own and stuck to the same plan.

Don’t get carried away

I practice what I preach. Last week was an amazing week for me. I hit near half a dozen 100% winners by Friday.

There was zero… I mean zero reasons not to take the money and run.

I’ll tell you what I told members. The thought of same-day options is enticing. Don’t fall for the siren’s song. Enjoy your profits and your weekend.

You’re always welcome to join me during the week for plenty of trading at Weekly Money Multiplier.

Source: WeeklyMoneyMultiplier.com | Original Link

Markets have decided to break up with momentum plays. They want to “see other stocks.”

Hey, I still love you…

…and you love me right back.

You showed me your tells…taught me exactly what to look for when you’re ready to turn things around.

ROKU…traders pretend you don’t exist when you slide 44% from the highs.

But I know to treat you right. I buy your calls, and you show me tenderness.

We decide our friends should meet. After spending the day together, we’ve all become close.

Look, it’s not easy dating momentum stocks. Your friends will tell you you’re crazy…there’s no earnings there.

I know different…I know when you want to move higher.

Small flirtations

Stocks love to take their good ‘ol time moving higher. But when they fall, they crash hard.

Don’t ever try to be a hero. Trying to pick stock bottoms when a stock’s in freefall will make you broke real fast.

Momentum like ROKU, TTD, UBER, ZM, and others tend to move up on growth prospects, not profits. Traders buy, hoping other traders will buy right behind them.

Fun Fact: You can actually see this in global bonds. Really…who wants to make negative interest? Only folks who can offload them to some other sucker at higher prices.

When traders sell momentum stocks, they’ll pour out as if the dam broke. The sheer volume and speed make it more difficult for them to find real bottoms.

However, there are a few signs that things may be slowing.

Super high volume – I’m not talking about a 50% or 100% increase in daily volume – this is more like 3x-5x the daily volume. You want to see all of the stops tripped, all the long positions obliterated. High volume means someone is buying and selling. As they pour through orders, shorts get sopped up. At some point, all you have left are value investors that are getting paid to take a shot.

Reversal candle – One obvious sign of an impending reversal comes from the candle. Doji, tail, bullish engulfing candles all play a role. They tell you, at minimum, price is going to take a pause.

TTD daily chart

Moving average crossovers – Jeff Bishops loves trades for his Bullseye Trade of the Week, where the 13-period moving average crosses the 30-period moving average. He wants it to be the first time they’ve touched in a while. This signals he’s looking at a trend change.

MDB hourly chart

Best Hangouts

Flirting with a stock is all fine and dandy. But, you want to do it in the right setting…create the mood, if you will. We call these places “support levels”.

Consolidation areas – Stocks often banter back and forth in a range for an extended period. These areas act as support and resistance when price returns.

ADBE daily chart

Fibonacci retracements – Traders like to use Fibonacci retracements to identify key support and resistance levels. Most platforms come with a Fibonacci drawing tool. You align the ends with the most recent high and low swing points to calculate the levels.

SHOP weekly chart

Big numbers – As dumb as it sounds, big round numbers attract orders. Levels like $100 or $200 will act as support or resistance.

UBER 15-minute chart

Gap-fill – Stocks that gap up or down in the morning will leave an opening (window). When price returns to the spot it broke out from, it often finds support.

MDB hourly chart

Not so obvious signs

Traders commonly overlook two key signs.

First, look at the bearish commentary in the media. When everyone gets really bearish, that’s a time to start looking. Outside of biotechs, most stocks will find value investors at some point. These folks take long-term views of companies. They look for deep discounts to get involved.

I like to look at multiple downgrades and lowered earnings revisions. At some point, they set the bar so low it’s easy to beat.

Second, I look for unusual call activity. If options normally trade a few hundred and you see several thousand move in a few trades… pay close attention.

How this worked for a 100% gain

While I wait for the stock to tell me it’s bottomed, I won’t shy away from taking a trade. Shopify (SHOP) had been cratering for almost a month.

SHOP daily chart

But, I saw signs of a bottom. I sent an email out to Weekly Money Multiplier Members, letting them know I was stalking the trade.

The setup worked out beautifully. We had a nice support level, engulfing candle, and moving average crossovers on the daily chart…everything picture perfect.

This trade rewarded me handsomely with a 100% profit.

I wasn’t the only one. Members like Derrick hit it hard on multiple momentum trades, including ROKU.

We find setups like these every day. I love teaching traders what I’ve learned and hope you’ll consider joining us.

Join Weekly Money Multiplier Program Here

Source: WeeklyMoneyMultiplier.com | Original Link