Happy Friday, traders. We hope you all had a good week and got a little bit better at your craft over the last 5 days. The daily squeeze in the S&P 500 (ES) that we covered last Friday finally fired long this week, and with that being said, the markets continue to look solid here.
Though it has yet to fire its daily squeeze, the Nasdaq (NQ) continues to maintain a bullish structure which we think could be good for one more solid push into new highs. With a solid looking daily squeeze in the Nasdaq QQQ’s, we also have our eyes on AAPL here. Apple has its own bullish daily squeeze with a series of lower time frame squeezes setting up under the surface (see chart below). With this structure, should the NQ push into new highs we believe Apple will follow suit. For this reason, we sold a put credit spread on AAPL earlier in the week that expires next Friday. The ball is in the QQQ’s court, of course, but if we get a nice move in technology next week we should be able to get our move into $150+ on AAPL.
Another set up that we are big fans of right now is Tesla. A couple of weeks ago we sold a September monthly expiration put credit spread in the Compounding Growth Mastery as the stock was setting up in a daily squeeze, and thus far that trade is off to a great start (see chart below). However, the structure of the bullish weekly squeeze and 3-day squeeze leads us to believe that Tesla could be just getting started. At the moment, there are a handful of lower time frame squeezes setting up on top of the daily 8 Exponential Moving Average (8EMA), and if they begin to fire long they could trigger the next solid push into the upside. As long as the structure of the weekly squeeze here remains intact, we will wait for any dips as an opportunity to add more exposure here.
This week, we closed trades in PTON, CRWD, and ZM for losses in the Compounding Growth Mastery as all three of their squeezes lost structure. However, we were able to keep these losses small and are still moving the ball forward with our winning positions. Our trades in XLI, TSLA, and TSCO are all off to a great start, and we were able to close our AVGO and IWM spreads for 70% and 50% of the max potential profit, respectively, this week.
Keep your losses small, let your winners work, and keep looking for the next good setup! That is the key to consistent trading. As always, in Sunday’s newsletter video we will be covering a handful of setups that we think could lead to our next round of profitable trades. So keep your eye on your inbox for that video this weekend and be sure to spend some time recharging over the next few days.
Stay Focused!