30 minutes is all it took. It looks even better (worse) on the 5min chart. If you want to succeed as a trader, or as an active investor, you must trade and invest in ways that protect your capital. The unexpected will occur, and when you lose money it should be easy to accept the loss. This is a horrifyingly perfect image to remind us to think through our...
The blue line is a longer trend line connecting closing price from Feb 2020 peak and Sept 2020 peak. SPY opened just over the white line today, and I am watching this to see where it closes. There are good call and put day trades on lower time frames, but be patient for good trade setups. Use caution today - there is hesitancy at the highs. Volatility may...
For the time being, AMD is holding the blue line. Price can move back up to highs, and then it either goes higher or it turns and heads lower to the blue support zone (59-55). Use this weekly chart for context, and then look for swing and day trade setups on the appropriate timeframes. There are many good trades to be had on this stock, and option premiums are...
Stochastic %K spiked up this morning and created a bullish warning. Since we gapped up at the open, it is possible price pulls back from this gray line to close the gap, and then begins a move up where QQQ gets over 311 and heads to 320. This would match with a bounce from this recent tech stock selloff. I expect it to be a temporary rise in prices that will...
A break of 180 is definitely bearish. I am looking for another move lower with markets in the next week or two. I have this stock on my watch list because it should make for a nice day trade. Based on price action, you could take swing puts now with an exit over 185. You could wait for a stronger signal, which would be a break of 180. Or if price goes higher...
Look at the 60m chart and see the straight up price move in DIA. This kind of price action on an index ETF ??? The white line connects closing prices. I am buying swing puts now, with price between 321-322. My stop is over 322.10 to start. Give this time to reverse and if it does, you will have a fabulous reward to risk swing trade. One caution I see on the...
This hourly Zoom chart is an example of what I see on many stocks. A gap up open brought prices to 20sma, in this case for the first time since beginning a strong move down. You can see the white lines on price and RSI show bullish divergence, which indeed resulted in a move up, but remember divergence often leads to a bounce, not a complete trend reversal. In...
Price is around 20sma on the daily chart right now, which triggered an alert at 223 to buy swing puts. Maybe buyers will move price up a little higher to the white line resistance, but I am not sure if that will happen. Stochastic %D shows a peak that may be ready to turn lower again. RSI on 60m close might create a bearish divergence, while on daily chart I...
Price broke below the support zone, all the way to the white support line. As green arrows show, every time RSI is this low we see a move up in price. This is a big reversal open as well. I kept April calls from last week and am adding more for this move up.
On the hourly chart you can see the moving averages are in a clear downtrend still, and today's price broke Friday's low. On 60m chart there is a bullish divergence signal with RSI making a higher high and price a lower high (between Friday and today), but this does not always result in a bounce. Hence if you buy in this last hour keep a small position and check...
This is another tech stock that saw endless and thoughtless buying, and now look at that nosedive on the daily. But after such a selloff, how do you know to buy puts for more selling? After choppy action and big price moves, I like to check the hourly for clarity. Here you see price was testing the 20sma on hourly, and after a doji candle it moved lower. ...
CVNA, like many other stocks that sold off last week, looks like a good buying opportunity on the daily chart. Switch to the monthly and you see the 10ema - the 10, not even the 20! - is still down around 220. That just goes to show how fast stocks shot up and how far they moved away from the averages. Option volumes are slim to none on this stock but if the...
The fast and furious rise in IWM looks especially stunning if you zoom out to the past 4 yrs. On the daily chart a trendline support from March 2020 was broken yesterday. Like a number of stock charts, the daily chart shows some selling and looks like a move up could happen. Yet the weekly chart shows price can still move lower to get back to the 10/20 moving...
The white arrows and green lines show the divergence between price and RSI. If you see bullish divergence at a support area - 234-233 is a daily support - you can buy stock or calls for a low risk trade. Risk is low because you are entering close to a low that should hold. In this case price retreated from 238 but has not broken 233 again. In this case,...
Square has gone up and up. The red lines mark selling (price pullback) that matches RSI peaks. I am looking for the same to happen here. Buyers rushed in before earnings, then stock went lower, and today price is chopping at 254-256. Buying seems exhausted and more people may book profits soon I am looking for price to stay below 257 and head down to 248-250,...
On the weekly and daily charts, my indicators all show that selling may soon be exhausted. On weekly, you can see price is in support zone and you can visually see three waves of selling from top (Sept '20, Nov '20, today). Initially I was looking for 163 to hold but there is too much yield-rising pressure so price is moving down into green support band. I ...
At the end of last week there was barely a bullish divergence on the hourly chart with 7-day RSI. Price closed lower by a penny while RSI was higher. The Dow's fast selloff quickly drew in buyers this morning. The blue line at 316.40 marks the resistance area. Last week's move down was strong enough that - combined with daily/weekly context - the index could...
I bought swing puts on SPY, for the following reasons: V-shaped bounce is complete, while 20sma is still below cloud price is in resistance zone (indigo) Volume has been diminishing on this rise RSI 14-day went below 33 and is now hitting bear resistance zone (should stay under 67) head and shoulders pattern has been broken Based on weekly and daily...