A Fresh Trade for the New Year!
First off, this is the first trading day of the year… there is NO RUSH!
We have all year to make good choices and solid decisions, and these will lead to profits.
Let’s focus on the process and let the results take care of themselves.
The markets will be open all year – we aren’t going to make our yearly gains in the first few days!
But I’ve got a setup that could get us off to a great start.
Take a deep breath, and let’s get into it.
YOUR ACTION PLAN
The trade for today is H World Group ADR (Nasdaq: HTHT). It has everything I need to see in a long setup – trend, pattern and squeeze. I want to buy the February monthly $40 calls (expiring on February 17) on a pullback to the 21-day exponential moving average, or EMA, which is currently around $42. The EMA is a similar statistic to simple moving average, or SMA, but EMA applies more weight to recent data.
Another thing I like about this setup is that it has the potential for a short squeeze. With the short float over 20%, if we do get some money coming into the markets early this year, we could get an outsize move to the upside in this name as shorts are forced to cover.
My stop would be a daily close under $40, and I’ll be targeting a move higher to over $45.
P.S. My colleague Bryan Bottarelli is going LIVE for the biggest event of the year on January 11 at 2 p.m. ET.
It’s called the Accelerated Profits Summit… and you’ll discover how one breakthrough trading tool would have targeted setups for potential same-day gains as high as 288%… 400%… even 553%!
“In $7.55 out $8.65 (14.57% on LILY in less than a half hour)”
“I closed the 80 shares I opened at $7.47 for $8.63. (15.53% on COTY in 28 trading days) Thank you so much.”