This week, I took a Micro Strategy (MSTR) trade with my Compounding Growth Mastery members for a slight loss. The challenging part about trading is being patient for the moment when everything is coming together.
I have learned that I have a zero-tolerance policy for a stock to do anything more than it’s supposed to do. If the stock isn’t behaving, you shouldn’t play the game of hopium.
Stay focused!
Despite this week’s back-and-forth price action, the market is in good shape for a potential breakout. The S&P 500 (SPX) shows multiple squeezes on daily, 2-day, and weekly time frames. When those come together with a Big 3 buy signal, there is a high probability for the squeezes to fire long.
Big names like Google (GOOGL), Microsoft (MSFT), and Semiconductors continue to lead the way for the market this week. In the video above, I review my current trades with my Compounding Growth Mastery members in Netflix (NFLX) and Tesla (TSLA). I hope everyone enjoys the Memorial Day Weekend. Take this time to tighten your watchlist and prepare for the week ahead. Due to Monday’s holiday, there will be no newsletter sent.
Stay safe and stay focused!
The S&P 500 (SPX) continues to trade around the $4,200 resistance level. On Monday, SPX approached $4,200 but failed to break through it at the close.
The daily bull squeeze officially fired long on Monday with Big 3 buy signals on the weekly, daily, 4-hour, 2-hour, and 1-hour time frames. For now, the path of least resistance indicators are printing bullish. This could cause these squeezes to trigger to the upside…
In the video below, I’ll review where SPX could move if the squeezes trigger and break down charts on TSLA and NFLX.
Stay Focused!
It was an action-packed week for the market. We had Options Expiration (OPEX) on Friday, and Federal Reserve Chairman Jerome Powell spoke.
On Wednesday, I took a call debit spread with my Compounding Growth Mastery members on NFLX (Netflix). The next day Netflix’s daily squeeze fired and gapped up, causing a big push into Thursday’s trading session. We cashed out for a 60% return!
The question heading into next week is, will the S&P 500 finally break out of its squeezes? Although we had OPEX, the bulls still have all the ammunition to get the job done for the SPX.
Stay Focused!
We closed out of our recent nested squeeze setup we reviewed last week on LRCX. Now there’s a potential nested squeeze setup on Netflix (NFLX).
The nested squeeze has become my major focus lately. I’m narrowing down my focus to that moment in time where 2, 3, or 4 timeframes are printing a bull or bear squeeze. One example of this type of trade setup is a recent trade I closed in LRCX.
Check out the video below for a review of our LRCX trade and the potential trade setup on NFLX.
I also post potential nested squeeze setups on my Twitter. Here’s my recap of the LRCX trade.
$LRCX closed up our swing here for a solid 60%+ on the calls (awful internet on my end today, so didn't get the best fill on exit)
Classic nested squeeze setup. On to the next one @simplertrading pic.twitter.com/ggFkQPqMgT
— Taylor Horton (@focusedoptions) May 15, 2023
Let me know on Twitter if you find any nested squeezes, and I’ll take a look!
Stay Focused!
Our stock pick on Amazon (AMZN) unfolded perfectly this week. Last Friday, AMZN showed a nested squeeze, and my Big 3 indicator confirmed a potential push higher. On Monday, we bought calls for next Friday’s expiration in the Compounding Growth Mastery room. Three days later, we profited a 70% return.
For upcoming stock picks, Lamb Research (LRCX) is showing similar signs as Amazon, with a nested squeeze and Big 3 buy signals showing on multiple time frames. I bought calls for next Friday’s expiration. Let’s see if we can get a push toward our exit target of the daily 21 exponential moving average (EMA).
Stay focused!
There are two trade setups I’m keeping an eye on this week, but there is one kicker. The Nasdaq (QQQ) must break out for these ideas to work.
The QQQ daily chart has a squeeze on the daily chart and Big 3 buy signals on the lower time frames. If the QQQ can push higher and break above resistance, then it could open the door for more upside potential.
Check out the video below for my two favorite bullish picks if the QQQ can push through resistance.
After a busy week for the market, I’m still hunting for more clarity on the market’s direction.
The S&P 500 (SPX) continues to show a daily squeeze, and the question remains on which direction it will fire. Let’s stay disciplined and see if we can get a strong push toward $4200 on Monday. In today’s video, we’ll do a deep dive of SPX on multiple time frames and review my favorite setup on AMZN.
Stay Focused!
This week I’m looking for the S&P 500 (SPY) to push into $420. This would require the SPY to break above the previous swing high in February, around $418.30.
The weekly chart is printing a Big 3 buy signal, nested with a daily squeeze also printing a Big 3 buy signal. In the video above, we’ll break down the lower time frames on the SPY and review trade setups based on this thesis.
Stay Focused!
A big goal of mine is to shift a lot of my focus back to trading the squeeze. Throughout my entire trading career, historically, when I focus on nothing but the squeeze I trade at my best. As I continue to go through the process of developing the big three indicator, that’s a big part of the goal as well, trying to fine-tune these buy and sell signals for the squeeze.
As I review squeezes for next week the main setup is the S&P 500 (SPX) weekly squeeze. This squeeze has been around since Christmas. Inside the weekly squeeze the SPX is also showing a daily squeeze which, for now, is printing a buy signal.
Stay Focused!!