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Case Study – NASDAQ:UBNT All Time High Trade

by | Mar 29, 2019 | Bishop's Corner

Stocks are catching somewhat of a bounce today, in what has been one of the choppiest weeks of trading all year.

However, there is some positive chatter going around that trade negotiations between the U.S. and China are improving that has given investors some optimism.

Also, Lyft IPO’s today on the Nasdaq, the car-sharing app is set to open at a market cap of $20B+ … which makes it bigger than Kellog,  CBS Corporation, and Hess Corporation.

I was at the Nasdaq just a few weeks ago, so I know how exciting the energy is over there…for early Lyft investors, today is a celebration.

(Weekly Money Multiplier is running its best deal ever, click here to take advantage now)

That said, Weekly Money Multiplier clients have been killing in Nasdaq stocks recently…

For example, it didn’t take long for Nathan Bear to get comfortable with his new role at WMM. His alert in Ubiquiti Networks (NASD: UBNT) was already proven to be a value add:

JM: Sold UBNT $2,805 in profit!! Thanks Nate. 

SB: Out UBNT calls +%72, @nrand, really enjoyed your lesson last night, really addressed a lot of areas I’ve been struggling, stepping away from the market today with $1500 I didn’t have this morning!

TD: @nrand 60% on UBNT calls just hit my sell stop. sweet cheers mate

JM: Thanks Nate sold UBNT calls =58%

DF: Nate 26% this am on UBNT

BA: Made $1250 on UBNT. Thanks Nate.

DT: sold UBNT-+2875(49%). Still have 5 left. Thanks.

This trade fits in line with Nate’s system called “TPS”, or trend, pattern squeeze. Now, it might sound like a mouthful but it’s not that hard to pick up.

Keep reading to learn the mechanics behind this setup and how you can learn how to make money using this pattern in the future.

NASDAQ:UBNT Case Study

Now, I’ve been watching Ubiquiti Networks (UBNT) for a pullback to buy. A lot of beginners have a problem with finding the right price to buy a stock… but I have a indicators and patterns to let me know when exactly to buy a stock.

Here’s a look at the daily chart over the past year in UBNT.

 If you look at the chart above, UBNT pulled back to the orange line (the 8 period exponential moving average).

Now, you have probably heard of Jeff Bishop using the simple moving average crossover (the money pattern) to signal when to buy or sell a stock.

Exponential Moving Average Explained

Well, you’re probably wondering, what’s the difference between the exponential and simple moving averages?

The exponential moving average places a greater percentage weight on the most recent data points. On the other hand, the simple moving average equally weights the prices. In other words, the most recent price action matters more with the exponential moving average (EMA).

But what happens when you see a stock pull into an EMA?

Well, I pair it with a pattern and look to buy around that area… I also use the TTM squeeze to time my entries.

If you look at the daily chart in UBNT, it had a strong uptrend… thereafter, it consolidated (traded within a range)… consequently, it formed a bull flag/pennant pattern.

Not only that, I noticed the TTM squeeze indicator was right at the zero line… and I anticipated it would stay above it and actually have bars above it. That tells me the stock could actually build momentum and run higher.

UBNT Trade Idea – The Break Down

The basic idea here was to buy strong stocks that have had a strong move up… followed by a consolidation period, forming a bullish pattern. Thereafter, I use the TTM squeeze to help me time my entry.

Now, I alerted Weekly Money Multiplier clients about this trade and bought to open UBNT 4/18 $145 calls at $5.50.

Just a few days after I bought those call options, UBNT made all time highs.

Here’s a look at yesterday’s chart in UBNT.

I actually set a target the day before this happened for the options at $8.90… and I sold to close half of that position for a 60% gain. I’m holding the second half for a 100% winner. 

It’s really that simple… I paired the exponential moving averages with a bullish chart pattern… and used the TTM squeeze to signal my entry… basically, look for the trend, the pattern, and then squeeze. It’s what I call TPS (Trend, Pattern, Squeeze).

Now, if you’d like to get these type of alerts in real-time…click here take advantage of a special promotion WMM is running, it won’t get much better than this…

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