What It Will Take For an Uptrend
SPY has finally broken its long uptrend and has started to trend down. Friday ended with a bullish bar, but that doesn’t mean much – UNLESS the bar produces follow through. Find out what Sami thinks will happen this week. In this video, Sami explains: – Why you should keep an eye on IWM – His method for setting a stop in a name like AFRM – What to do with stocks that only have a daily buy setup – Which stocks he prefers to take as investments – His favorite chart for the upcoming week
Continue Reading -->Scott Redler’s Dog Bytes: Why Rates Matter Now
SPX futures are -10 after a rollercoaster ride overnight. We’ll see if there’s any commitment to Friday’s reversal. SPY needs to hold the $432-$433 range. A close below that and it gets very choppy. QQQ’s need to hold the $357 area. Watch the 10 year (TNX) and TLT for clues on the broader action. (more on these below)Now let’s dig into some of the individual things I’m watching. Rates are dictating a lot of the trade because that’s how the computers are programmed. TNX broke below 1.50% and hit 1.46% Friday which helped tech. Watch it today. If the 10 year is going back to the March highs at 1.7%, tech will remain vulnerable. TLT bounced which helped the tech reversal. It’s down today. See if it holds the $143.65 area. Otherwise tech can really get hit. If it tries for green, perhaps we get some red to green action in tech. Banks should be good to buy on dips as we get higher rates in the coming months. XLF has last week’s low at $37.49 to trade against.BAC had a big move from $40 to $44+ for some. It held the 8 day where I bought some to try and position for better upside. This might be the place to be if rates continue to trend higher. $44.04 is a recent high. I will only add on dips. The F.A.N.G.-type names have been under pressure and just giving tactical trades for now as rates rise. TSLA will be very important today. It had very strong deliveries. Can it hold the early strength and stay above $793-$799 and extend higher? Or does the news get sold? This will be a big measure of sentiment and risks so pay close attention. NFLX has been the best F.A.N.G. type name and held the 8 day Friday. I’d see if today’s dip is buyable. It would be constructive to hold the $599-$608 area. The Squid Game is really popular and is getting a lot of press.Positions Disclosure as of 10/4/2021 at 8:04 a.m. ET
Continue Reading -->Options In Play – Straddles And Strangles Outside Of Earnings
While earnings are typically some of the better setups for straddles and strangles, there are other instances where those options strategies can work. I focus on make-or-break setups.
Continue Reading -->Options In Play – Rotation, Rotation, Rotation
Small cap up, Tech down. Money is rotating in a dramatic fashion today, and it may be setting up trades a few weeks out now.
Continue Reading -->Up in the Air
Last week the market started off with a big gap down, nearly reaching Sami’s target in one day, but then spent the rest of the week moving up. Right now it’s anyone’s guess which way the market is going this week, but Sami discusses what will signal a bullish or bearish move. In this video, Sami explains: – Why he hopes the market will turn bullish – Which pattern can be found in AVDL – The chart to watch for CALX – Where CHRS could be heading – How to find two buy setups in COUP
Continue Reading -->Scott Redler’s Dog Bytes: Where the Algos Go
SPX futures are -5 and off the overnight highs. For this market to rebuild and remain constructive for active longs, the 4400 area needs to hold. It did go from the 100 day up to 4463 fast. We’re seeing a bit of digestion and it seems like the algos are programmed to buy banks and value after the Fed’s hawkish language. Yields are lifting which could get worrisome at some point, but for now it’s considered a “normalization process.”Now let’s dig into some of the individual names I’m watching. I took a lot of DATS in the $8.50 area. It triggered above $9.13 to see $12+ to manage my last tier. Now I’d like to see it hold $10 on the remainder. HOOD was a good buy in the $41 area and it hit $47+ to book some gains. I’m still in some and will see if the $44 area holds to stay with it. CALX was a nice trade through $49 and it hit $53.50. I did buy some as it held $50. That spot needs to hold for the stock to stay special. FCEL isn’t an over focus, but I picked some up around $6.50 to see if it gets a better bounce if small caps do a bit better. Holding $6.70ish keeps it looking okay. I put on DLO last week and it acted well. Now it needs to clear $68ish with volume to open the door for $73+.Positions Disclosure as of 9/27/2021 at 8:24 a.m. ET
Continue Reading -->Options In Play – Big Gaps And Implied Volatility
Big gaps are fantastic when you are sitting in options. If weren’t in options before the move or if you are looking to adjust, the big gaps can present challenges.
Continue Reading -->Options In Play – BROS Is In Business
…for options trading that is. The hot IPO has just listed options, so this will be one on the watchlist now for a rip then dip strategy.
Continue Reading -->Blood in the Streets? DO THIS
The gravy train rolled off the tracks. The SPX is down -2% and the VIX spiked 26%. The action below the surface is even uglier with tons of small caps cratering 10% or even more. And if you’re in meme stock land… heaven help you… So what do you do now? Holster Up Your Guns Yes, you are losing money. But you have two choices. You can throw in the towel now. Or you can holster up your guns and get ready for battle. Because this is when you find treasures in the market. Get a Shopping List! Guess who made huge money since 2020? The people who held their noses and bought the right stocks when everyone was running for the exits. Imagine if you’d bought, say, Starbucks when it was in trouble? Or any of the thousands of stocks that skyrocketed after near-term issues. Don’t know what to do next? Then… Get Help We have LIVE trading rooms and newsletters built for traders just like you. So you get real help from real traders risking real money in the market. They can help you through this moment because they’ve been through it a million times already. Want to know what’s right for you? Email us and write “I WANT THE REAL THING.”
Continue Reading -->Post-Market Breakdown
Last week, Sami claimed that the market would have to break that Friday’s high before he got bullish. It never did, and this past Friday the market broke down. Find out where to watch this upcoming week for a possible trend break. In this video, Sami explains: – If IWM will continue to break from the norm – What will signal a secondary entry point for ADMP – The problem with AXSM – Which setup can be found in CDZI – What makes casino stocks interesting
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