This week, price has largely made what I’d consider to be retesting moves. There were three up-days in a row, technically, but there were also 3 gaps in a row, price just happened to close above the open. Today’s price opened roughly at yesterday’s open, and looks to have some strength as I’m typing this, but it doesn’t look very strong and I don’t think it’ll be sustained. I’m going to look for shorts today, and like Tuesday, I’m going to do a deep dive as I come across the charts I like, rather than saving them for later.
As I mentioned earlier, I’m looking for shorts today. So now, I’m going to look through the stocks in my stock screener and their charts, and look for candlestick patterns that suggest the stock’s price will go down in the near future. I’ll talk about each stock I like, and think I’ll trade, as I come across them.
TSLA – Short – I lost a trade here earlier this week, but I’m still bearish. That said, though, I’m going to take another limit order practice trade in this. It’s been pushing up over the last day, and has hit some resistance. If it reached the top of that resistance area, I’m going to try to short in to that with my stop being the next level above. I’m less interested in R:R for this, since I’m practicing the strategy and entry order more than anything, but I’ll still run the numbers.
NVDA – Long – I know, I’m only taking shorts today. So I shouldn’t even be looking at this. But I am, and here’s why: 1) While equities don’t seem to be holding on to the gains from this morning, price also isn’t pushing down as aggressively as I thought it would — and thus I’m not coming across a lot of opportunities and 2) over the past month, this has been mostly inversely correlated with the S&P. With that inverse correlation in mind, looking at the 3D chart right now, price is right at a strong key level, with a good amount of room above to run. This would be a breakout play, which I don’t love, but it’s not a base, so that’s better. I can actually argue a cup-and-handle here, on the 2h chart. I’m going to run numbers here and I think pull the trigger.
End of Day Thoughts
Slowly but surely, I think I’m getting back into the cadence of how I worked when I first started trading with Maverick. Getting to the charts a little after the open, so I’m not making decisions based on the opening move, Looking through the charts and putting in 1 or 2 entry order; maybe they’ll trigger, maybe they won’t.
Additionally, I’ve been using a 3day -> 2hour top-down analysis, which I think A) is better timing for the length of time I’m comfortable holding something and B) is long enough to allow me to hold through the close and not lose a DT. At this point, I only want to keep them for emergencies, but still, I don’t want to lose them if I don’t have to.
Lastly, I’ve really been liking taking a deep dive into charts as I see them. If I get 1 or 2 trades in, I feel good about that, and can often just take the time to monitor from there, instead of continually hunting because a stock is on my screener. Sorting by volume, I think I’ll find good opportunities and not waste time searching for the next thing. If it doesn’t work out, I move on, but I don’t want to miss something I see looking for something else; I’d rather miss something I never got to initially.