Sunday Prep 10/31 - $NET SHOULD this thing roll over up Here?
I’m throwing this name in here this week because I’ve been getting a TON of questions about the name. Mostly people wondering how can something get so overdone and not give the big fade yet? Well how overdone does this thing really even look after looking at the last 2 names on this list? Are we getting extended? Yeah. But SHOULD this thing roll over up here? Really doubt you can make that statement with any sort of confidence. It’s already pulled back twice in the last few weeks and both times put in higher lows on the daily and then heading straight back to new highs. Here’s the thing, you need to identify what timeframe is in control. Even though we may look extended on the daily chart, if you take a look under the hood you will quickly realize that it’s merely holding trend on a different timeframe.
Notice how well this has been just walking up the 120min20. Both times it tried to pullback and it began to look like it may roll over, it ended up creating a new continuation trigger higher. This is completely controlled and nothing about it looks extreme. Remember, when you’re trying to catch a “reversion to the mean” trade, our edge lies in it’s extremeness. If something isn’t extremely extended, then there is zero reason that it SHOULD fade. Could it? Of course. But SHOULD it? C’mon.
Notice how well this has been just walking up the 120min20. Both times it tried to pullback and it began to look like it may roll over, it ended up creating a new continuation trigger higher. This is completely controlled and nothing about it looks extreme. Remember, when you’re trying to catch a “reversion to the mean” trade, our edge lies in it’s extremeness. If something isn’t extremely extended, then there is zero reason that it SHOULD fade. Could it? Of course. But SHOULD it? C’mon.
Now, all of that preamble was really just so that I could explain that I DO think there is a trade setting up here. Once we DO finally lose that 120min trend and it’s not able to reclaim, then it should seek the next timeframe up’s trend. That would mean we could see a pullback to the 20d. But personally what I would WANT to see is this thing squeeze out higher. And sadly, when I start to get a TON of DMs about “why won’t this stock die?” or “how can this thing keep on continuing higher” it’s usually a pretty good indicator that there are a lot of upside down shorts in the name. And when that happens? You guessed it; El-Sqeeze-O.
The next monthly pivot starting Monday will be up at 224.77 and then 254.69. The annual pivot is up at 223.43 as well. So my FIRST area of interest would be up there around 224-225. If shorts are hurting here, they will be screaming up there. And when they all scream “UNCLE” and bail, well that’s when it’s the best opportunity for us to step in and BEGIN our short.
Notice how well this has been just walking up the 120min20. Both times it tried to pullback and it began to look like it may roll over, it ended up creating a new continuation trigger higher. This is completely controlled and nothing about it looks extreme. Remember, when you’re trying to catch a “reversion to the mean” trade, our edge lies in it’s extremeness. If something isn’t extremely extended, then there is zero reason that it SHOULD fade. Could it? Of course. But SHOULD it? C’mon.
Notice how well this has been just walking up the 120min20. Both times it tried to pullback and it began to look like it may roll over, it ended up creating a new continuation trigger higher. This is completely controlled and nothing about it looks extreme. Remember, when you’re trying to catch a “reversion to the mean” trade, our edge lies in it’s extremeness. If something isn’t extremely extended, then there is zero reason that it SHOULD fade. Could it? Of course. But SHOULD it? C’mon.
Now, all of that preamble was really just so that I could explain that I DO think there is a trade setting up here. Once we DO finally lose that 120min trend and it’s not able to reclaim, then it should seek the next timeframe up’s trend. That would mean we could see a pullback to the 20d. But personally what I would WANT to see is this thing squeeze out higher. And sadly, when I start to get a TON of DMs about “why won’t this stock die?” or “how can this thing keep on continuing higher” it’s usually a pretty good indicator that there are a lot of upside down shorts in the name. And when that happens? You guessed it; El-Sqeeze-O.
The next monthly pivot starting Monday will be up at 224.77 and then 254.69. The annual pivot is up at 223.43 as well. So my FIRST area of interest would be up there around 224-225. If shorts are hurting here, they will be screaming up there. And when they all scream “UNCLE” and bail, well that’s when it’s the best opportunity for us to step in and BEGIN our short.