Month: August 2021

Every time the market dips it turns around and grinds higher. We saw the same pattern on Monday as the bullish market broke through all-time highs and pushed higher. Be patient, be smart, and size down now that the market is in an extended move. Wait to enter key setups until the market can reset itself, but also watch to see if it can continue higher.

Here is our focused list:

ROKU — Retreated after earnings, sitting in a 4-hour squeeze on Monday. Technology is spiking higher, but ROKU is still lagging and hasn’t made a move. Use the 4-hour squeeze as a compass. Since tech is extended, be patient for the move to take longer. Watch for ROKU to keep holding the $352 level toward the upside zone at $367. Be patient for it to break the 200 simple moving average (SMA) to boost higher.

MRNA — Down due to recent news, so keep a close eye for a move in either direction. If it breaks the key zone from $363 to $369, it could drop to $350 for a good short opportunity. If it keeps holding the key zone, we’ll look for a push up to the $390 to $400 range.

TSLA — Showing strength with the daily squeeze starting to fire on Monday and a weekly squeeze trying to release. Gapped out of the weekly wedge so it could explode higher. TSLA hit $730 on Monday and as long as it is above that, there is a strong chance that it will push higher to $753 (and up to $780).

GME — Starting to set up, broke the downside trend and 4-hour squeeze on Monday. If it can get through $217 to $227, GME could start to explode. Could be a great setup to allocate some lotto risk.

MSTR — Heavily relies on what BTC is doing, which is turning around after a pullback. If BTC starts to rally and retests highs, MSTR could also rally. MSTR is currently sitting in a wedge at the daily mean at $695, looking to pop and explode higher. If it can break through the wedge and holds $690, look for a push through $750 up to $800.

Stay Focused!

Let’s take a look at high-probability setups we’re watching as we head into the new month of September. We’re keeping an eye on three main things that make up a strong setup: trend, structure, and momentum. We’re watching setups on AMD, TSLA, and AAPL as they all have those three things in common. We’re big fans of the semiconductor sector as it hit an all-time high on Friday with its weekly squeeze.

So long as the path of least resistance is to the upside, these are the types of setups we’ll be looking to trade heading into the next few months. We’re looking forward to start another week and month strong! 

Stay Focused!

Surprise! We’re switching it up this week with a special walkthrough of this morning’s scan results using both the thinkorswim® and Simpler Trading scanners. Using a quality scanner makes finding high-probability setups to add to our watchlist easier and quicker.

Keep in mind what makes up a strong setup: uptrend, good structure, and momentum intact. Watch the video above for a full look at our daily squeeze watchlist that we’ll be focusing on the next few weeks. 

And if you’re interested in learning these setups and turning them into real-time trades, check out the Compounding Growth Mastery program. We hope you enjoyed this Watchlist Special, and we’ll see you in Sunday’s video!

Stay Focused!

All eyes are on the Federal Reserve Jackson Hole virtual event tomorrow morning starting at 10 a.m. Eastern shortly after the market opens. There’s much anticipation going into the meeting, so we’re expecting a volatile and eventful end to the week.

The devastating news overseas and the uncertainty around tomorrow’s Fed event dragged all three major indices lower today and increased volatility in the overall market. Rather than watching our Focused List as closely, we’re mostly focusing on the overall market, specifically the S&P 500 (SPX). We’re looking to take advantage of moves that line up with our key price targets (listed in the video).

One name we will be watching is GOOGL, the strongest leader of the technology sector. This Big Tech darling has continued to rally and held up its progress thus far. We’re keeping an eye on ROKU to continue our rinse-and-repeat setup of buying the dip if ROKU opens and holds at the $352 key zone. The last name that deserves some recognition and patience is SNOW, so watch the $292 level to see if it can push higher.

For now, let’s focus on the overall market and see how tomorrow’s Fed event plays out. Will we continue to chop, boost higher, or will negative news send the market lower? Either way, let’s be mindful of volatility and look to take advantage of our key levels.

Stay Focused!

The biggest catalyst we’re watching this week that could affect the market is the Federal Reserve (FOMC) Jacksonhole event (moved from an in-person to a virtual event) that could cause a big move to the upside or downside.

All three major indices have been showing a similar pattern of dipping, recovering, and hitting new all-time highs. In the S&P 500 (ES) specifically, we’ve seen a dip buy at the 50-day simple moving average (SMA). If the ES doesn’t turn around at the 50 SMA it tends to reverse at the daily Ichimoku Cloud. The Nasdaq (NQ) showed the most strength with moves down to the lowest dip and back up to the highest all-time high. We’re staying bullish and looking for the market to move higher. 

Here is our focused list: 

GOOGL — Very strong heading into this week. Fired hard Friday into Monday, breaking its all-time high into the psychological level of $2,800. In a beautiful daily squeeze, look for a retest of the all-time high zone at $2,775. Could move up to the psychological level at $2,850. 

ROKU — Looking for a reversion to the mean above $380. Currently underneath the daily Ichimoku Cloud, so watch for it to break above it for a big push higher. As long as it is above $352, we’re bullish and staying patient to see if the squeeze triggers.

NVDA — Looking choppy post the stock-split, yet setting up a daily squeeze that fired on Monday. Exploded higher through the session. We don’t want to chase it, since it has already made the big move. Looking for a potential dip-buy.

ZM — Has dropped lately. Pay attention to see if ZM can dip below the hourly Ichimoku Cloud and work back up to its daily mean at $355. After that, watch for it to move toward key levels up to $364.

Stay Focused!

The market tends to drift toward the downside after any big spike in volatility like what we saw on Monday last week. If and when the volatility index (VIX) dies down, the market will typically bounce right back. With the S&P 500 (ES), Nasdaq (NQ), and Dow Jones (YM) setting up with bullish daily squeezes, the path of least resistance is to the upside. All three major indices are setting up bullish, so there are three main components that we want to focus on when searching for high-probability setups. 

We’ll be looking for a combination of three main things to make up a solid setup: trend, structure, and momentum. Watch the video above for a review of how to utilize these three components in your trading and a run-through of some good-looking setups like AAPL, FB, and GOOGL.

Stay Focused!