1/4/2018

3:40 pm: My gap strategy had me watching for continuation in China Information Technology (CNIT), which was already up 26% on news of a platform partnership with a major Chinese advertising firm.

My proprietary system for spotting high-probability gaps gave me a signal that it was time to buy -- even though the stock was already up 26%! This system uses 42 unique parameters to issue signals. For example, the stock was trading at 90% or more of the top end of the range, and had more than 350% the average daily volume.

3:43 pm: I issue the buy alert at $1.95 (see above)

5:51 pm: I announced it’s time to get out at $3.50 for a 79% gain in about 2 hours.

On Wednesday, January 3, 2018, semi giant Intel (INTC) took a big hit on news of a major security flaw in its processors, which had traders worried about multi-billion dollar losses.

The stock dropped like a rock, going from $46 to a low of $43.65.

Here's why I got long.

1/4/2018
1:46 pm: INTC hits $43.65, and I got long the stock at $43.71, and I buy Jan. $44 calls

​

You’re probably asking yourself why? Why try to catch a falling knife?It’s because my unique method of combining trendlines and volume analysis told me the move was overdone, and the algos had pushed too hard.

As a technician, one thing I’ve noticed over the years is that when you get your analysis right, the news tends to work in your favor. 

2:00 pm: Around this time, INTC denies the reports and announces a conference call,

3:01 pm: The stock crosses $44

3:05 pm: The stock crosses $45 and hits a high of $45.46

On January 4, 2018, Macy’s announced a restructuring effort, including closing 11 stores and eliminating 5,000 jobs.

Macy’s dropped over 5% in 5 minutes. Was this an overreaction? Or the sign of smart money selling before things get even worse?

Here's why we got long:

1/4/2018

9:35 am: My traders want to know if there’s an opportunity in Macy’s (M).

9:45 am: After rapid analysis, I conclude that M can bottom between $23.43 and $23.46, and issue the call. Over the next half hour, Macy’s continued to make fresh lows, finally hitting $23.46 where I expected algorithmic buying (robotic buy programs) to start.


10:26 am: Macy’s hits a low at $23.44.

11:20 am: Macy’s hits $24.34 after 8 straight green 5-minute bars.

See how Mark went long WTW calls at $0.75 before they went to $3.50:

2/28/2017

8:00pm: Before earnings, I tell my Newsbeat audience that WTW is setting up to explode higher
8:30-9:00pm: I add it to my Newsbeat Cheatsheet and mail it out.

3/1/2017

9:00am: WTW gaps up almost $3 after reporting earnings.
9:01am: Traders were afraid that the move was already priced in.
9:05am: I say this is not the case because it has an 82% short float (8 out of every 10 shares is short)
9:15am: I issue my algorithmic price target level of $20.14
9:50am: I buy $17 March Monthly calls at $0.75 when the stock is trading at $16.85
10:25am: The calls are trading at $2.25 after the stock exploded about 20% higher
11:50am: The calls are being offered at $3.50 as the stock was trading about 25% higher off the lows
11:50am The stock tops out at $19.86

See how Mark made a 300% profit on MU calls

3/2/2017

12:27pm: Micron releases 2nd quarter earnings - unusual since most companies report before the open or after the close
12:30-4:00pm: the stock gyrates and closes in its range
7:30pm: I note that analysts did not have a chance to give their opinions on the stock

3/3/2017

9:00am Analysts come out bullish, Micron has a ton of volume and is gapped up 50 cents
9:30am I buy 250 Micron expiring weekly calls - 100 at 7 cents, 100 at 5 cents, and another 50 at 8-9 cents
9:39am The stock explodes further, and I sell my calls for a 300% gain for a $7,000+ profit

See how Mark used an STX upgrade to squeeze out a quick gain in the stock. 

10/2/2017

9:00am: Newsbeat members get alerted to a major upgrade of STX which exhibited a very bullish technical pattern, the bullish technical chart pattern of STX.
9:34am: ​Mark gives the alert to buy STX at $33.82
10:59am: Mark says sell around $34.40

This was a small profit for Newsbeat stock trader, and a serious profit for options traders.