I don’t know about you, but it was a great week of trading. And I can’t wait to get back at it tomorrow.
My short play in IIPR flipped a +50% winner overnight…
…same goes for my LGIH puts…
… did I mention my 100% winner in PAGS?
Look, I get it. Many of you can’t find trades like these on your own. Otherwise, why would you be reading this eletter?
So let me give you some help. I’ve got three trades on that I want to share with you.
Few charts get me this excited. I’ve played with AKAM several times in the past month. The last TPS setup worked out tremendously well.
Right now we have all the elements for a long play. No one would argue the stock’s uptrend. You can actually see the consolidation with the naked eye… which leads to a really long squeeze.
Last week I began building a position. I want to see the stock break out above its recent highs. With the time it’s spent consolidating, this could be an explosive move.
AKAM daily chart
This isn’t one I’ve been shy about. In the Weekly Money Multiplier live training sessions, I worked through my analysis with members.
Several asked about the one day drop it took down to $87.71. I actually used that opportunity to add to my position.
Members got the following notice to help them understand how and why I took the trade.
Activision Blizzard (ATVI)
Over the past few months, I’ve been in and out of this stock. Even last week, I played a butterfly spread for expiration week. It worked out beautifully, letting me close the trade early for 70% of max profit.
Earnings come up on November 7th. That gives option premiums an extra push the closer we get. Implied volatility rises for stocks as they approach earnings… it’s also a key pricing element to options. Rises in implied volatility = rise in option prices.
So, can I play a bullish setup here?
Friday’s price action looked a bit dicey. The stock rolled over but still closed well off the lows.
Also, the moving average crossover concerns me. I don’t like the 13-period moving average crossing below the 30-period moving average. That indicates bearish sentiment.
Still, the stock sets up with a good risk to reward profile here. The play relies on a few elements:
- The TPS setup – We clearly have the trend and pattern along with a squeeze on the daily chart.
- Price holds the lower trendline – The stock needs to hold the trendline pattern. Otherwise, it will release to the downside. I want to use daily closes to activate my stop.
- Get in and get out – This trade needs to finish before earnings. Implied volatility implodes after the announcement. You also get wild stock movements. That leaves you with little more than gambling.
ATVI daily chart
This stock really hit the mark for me. Price made a nice bullish uptrend for several months. While it wasn’t immune to broader market pullbacks, they lasted only a short while.
Otherwise, the stock continued to make a consolidation… push higher… consolidation… push higher.
The setup contained all the critical elements I look for.
- Trend–CPB rose consistently over time on the chart. If you drew a line on the daily chart from the starting price to the current price, you would move up and right. This designates an uptrend.
- Pattern – I prefer using consolidation patterns for my TPS setups. After making a swing high, price kept finding resistance at $47.23. The lows of each day kept moving higher. This created a triangle formation. This indicated price was squeezing together to make a larger move.
- Squeeze – Squeezes make trades likely to create explosive moves. My squeeze indicator looks for the Bollinger Bands to trade inside the Keltner channel. This indicates price tightening up. The release creates a powerful move, pushing price out of the trading range.
CPB daily chart
I’ve already taken half of my position off for a really healthy profit of just more than 50%.
You may wonder why I didn’t take off the full position. Ultimately, I wanted price to reach closer to $50.
However, I actively scale in and out of my positions. This lets me lower the average cost on the front end, and maximize my gains on the back end.
Several members analyzed and discussed the trade with me in the Weekly Money Multiplier commentary. I want them to understand what to look for in each trade, how to structure their entries and exits, as well as make the trades themselves.
One member even turned up a profit pretty darn quick… like within 24 hours of entering.
Want even more trades?
This makes up just a fraction of the trades I take each week. In fact, I’ve had dozens of lottos and daytrades that I walk through in real-time.
Trading doesn’t have to be hard. I help people like Jeffery learn to trade and make growth their accounts quickly.
Invest in yourself.