Month: November 2021

Our focus over the last few weeks has been the multiple squeezes setting up in names like AMZN and AAPL, both of which have squeezes on the weekly, 3-day, and daily time frames. So far our focus is paying off as both stocks pushed aggressively to the upside this week, both officially firing their daily squeezes.

When there are squeezes setting up on multiple time frames, our goal is to get positioned as close as possible to the buy zone, the 21 exponential moving average (EMA). This allows us to sit back and watch as the squeezes fire, one by one, as opposed to having to chase the stock once the move begins.

With weekly squeezes setting up on each, our targets for AMZN and AAPL are the +3 average true range (ATR) extensions on the weekly chart. For AMZN, this lines up around $3,900, while +3 ATR on the weekly chart for AAPL is closer to $165. Our put credit spreads on each have collected more than half of the max potential profit, and we are looking for continuation to the upside next week. In the event the moves continue quickly we should be in great shape to get filled on our exits for 85% to 90% of the max profit.

In the spirit of getting long, strong trends at the buy zone, we also entered a December monthly expiration put credit spread in TSLA, which recently pulled back to its daily 21 EMA. On this setup we are looking for continuation of this crazy trend with a move back to the previous highs. The put credit spread that we sold offered a 2:1 risk-reward ratio. We can comfortably hold this all the way down to the daily 50 SMA if needed.

Find a trend, find some squeezes, and work your entries wisely. That’s the simple game plan that has served us well all year and we expect it to continue serving us well into the end of the year.

In the Sunday video we’ll take a look at our open positions in NFLX, AMZN, AAPL, and TSLA, along with a few other spots that are looking poised for higher prices. We hope that many of you have taken action on the ideas mentioned here over the last few weeks, and we’ll talk to you on Sunday in the weekend watchlist video!

Stay Focused!

It’s been a big week for the market as we approach options expiration on Friday, which typically brings more chop and larger drops/pops.

The S&P 500 (ES) is starting to form a 2-hour squeeze heading into Friday. If the ES can rip through $4,711 we will likely see the squeezes fire and the ES move higher. On the other hand, we could see ES pull back to point of control (POC) at $4,673.

Our focus is on technology as it was the strongest index on Thursday with the Nasdaq (NQ) reaching an all-time high (ATH) at $16,490. Keep this ATH marked as a key level on your charts along with POC at $16,340, as these are the levels we’ll be watching for the NQ move. 

Watch the video above to view setups that are exploding like GOOGL, SHOP, and AAPL. To view and download the Trading Calendar 2021 referenced in the video, visit the link here at Nasdaq Trader. 

Stay Focused!

This week we’re anticipating earnings that can introduce new market opportunities, specifically for NVDA on Wednesday night. The market is still trading in exhausted levels with a gap up on Monday and a close at point of control (POC) at $4,673.

If the S&P 500 (ES) can stay above this level we’ll expect bullish moves, potentially to new all-time high (ATH) levels. Be patient near the POC and look for an hourly or 2-hour squeeze to form.

If price dips below the current POC, see if ES can return to our previous POC at $4,619.

Here is our focused list:

GOOGL — POC increased from $2,909 to $2,969 after the run higher Friday and gapped up on Monday. Watch for the hourly squeeze to form as GOOGL is setting up for a large move. If GOOGL holds $2,944, we could see bullish acceleration to $2,973 and a boost higher to $3,012.

NVDA — Ran to highs on Monday ahead of anticipated earnings Wednesday night. NVDA is in a 2-hour squeeze and 4-hour squeeze so it is positioned to remain strong, but make sure to watch for the earnings report as a potential catalyst. As long as NVDA holds the zone at $286, we can expect a push to $314 up to ATH. To the downside, we could see NVDA drop to $270. Let’s get through earnings first.

SHOP — Big move on earnings as it ran to an ATH at $1,704 on Monday with a weekly squeeze trying to fire. See if the squeeze can fire and SHOP can hold above the key zone from $1,632 to the previous ATH at $1,650. Focus on the hourly squeeze for intraday setups and for SHOP to continue its move higher.

TSLA — Is Elon done selling? TSLA dropped to $987 on Monday after Elon Musk tweeted that he would be selling some of his shares. If TSLA can break the trendline forming and push past $1,001 to $1,036, look for it to move to $1,071. If it keeps selling off we can see TSLA drop to $944 and potentially fill the gap to $910. Point of control is still at $1,175, so we could see TSLA work its way higher.

BA — Broke the downtrend on Monday after strong news reports and hit an ATH at $233. Would love to see a push toward $240 this week as it is starting to fire a daily squeeze.

Stay Focused!