This has been one heck of a trading week.

No joke, I went 5/5 to start Thursday with another 100% winner on CAVA.

For those of you who missed my Open House, it was a trading bonanza.

Fortunately, I think there are a few stocks capable of delivering some mammoth trades over the next week, even with the Fed rate announcement.

So, let’s talk about three stocks that I’m watching like my life depends on it.

CAVA Group (CAVA)

Yes, I’m bringing up Cava…again.

I don’t care.

I want you to get bored with making money.

And Cava has been a trader’s ATM.

So, what makes Cava different from all the other stocks out there?

First, it’s a smaller company whose stock isn’t part of major ETFs.

So, if the indexes start to move one way or the other, Cava doesn’t necessarily have to go with it.

It’s like that friend who goes off to do their own thing at Disney all day.

The second and most important reason I love this stock is the strong bullish momentum.

Every time you think this stock is done making new highs it takes another leg up, while the pullbacks are shallow.

Below, you can see how this creates a classic TPS setup that traps in the shorts for a squeeze:

This 195-minute chart has a strong upward TREND and a clear consolidation PATTERN.

The only thing missing is the squeeze where the Bollinger Bands move inside the Keltner Channel.

On smaller timeframe charts like the hourly, the TPS setup has already completed, with the squeeze ‘firing’ (that’s where the Bollinger Bands do the opposite and go from inside the Keltner Channel to outside).

So, why am I showing you the 195-minute timeframe?

Because if we get a small pullback over the next week before breaking to new highs, that will deliver the squeeze on the 195-minute chart.

Now, let’s take a look at another stock that I’ve got my eye on.

Lumen Technologies (LUMN)

This one is a higher risk play, but still worth watching.

Plus, it’s extremely cheap, making it perfect for small accounts.

Lumen’s stock caught a bid in late July, sending shares from $2 to over $7.

Since then, the stock has come off its highs, but has held most of its gains, trading between $5.00-$6.25.

One of my trade ideas from yesterday was to use this pattern and the gap fill left open from 8/28 as a bullish setup.

While that brought up a day trade setup, the bigger picture is in the TPS chart setup below.

This is a perfect illustration of the TPS setup.

We have a clear uptrend, a nice consolidation pattern, and now a squeeze on the daily chart (shown by the red dots in the corner).

I bet there are a lot of short sellers betting the stock would collapse and are now stuck.

That’s why any decent push higher should spark a squeeze that punches shares through the recent highs.

We’ve gone over two of my favorite stocks. But I’ve got one more for you.

Forward Air (FWRD)

Last up is a sneaky little stock that I haven’t heard anyone talk about. Yet, it’s arguably one of my favorite charts right now.

Let’s start with the juiciest part: a +26% short interest.

That means that one out of every shares that’s available to trade for this company is being sold short.

While the others on this list have a decent short interest, getting north of 20% is where things start to get serious.

Now, some stocks have high short interest for a reason. For example, B. Riley Financial has a ton of problems with investigations digging into the company. Naturally, it’s attracted a lot of bears who are willing to be the stock will drop further.

FRWD is different. It’s the kind of mismatch that makes me salivate.

The stock has an incredibly high short interest. Yet, shares are higher than they’ve been since March of this year.

Ideally, the stock would be near its 52-week highs. Making new all-time-highs would be even sweeter.

However, this stock still has plenty of bullish momentum that keeps pushing the stock higher.

Looking at the chart below, we see another TPS setup on the 78-minute chart.

Now, this squeeze is in the process of firing and will likely trigger a short squeeze for anyone who had their stop-loss orders at the recent highs.

Don’t worry. These types of stocks will often keep making these same patterns multiple times before they finally give up.

So, make sure to keep it on your watchlist.

The post How I Spot Potential 100% Winners Before they Happen appeared first on Trade of the Day.

Yesterday, during the LIVE Open House for Daily Profits Live, we watched the S&P 500 drop nearly 100 points.

But for 75 minutes of trading, I sat, watched, and waited.

Finally, I got the signal to step in around 11 a.m.

That’s when I scooped up some short-dated calls in Costco that I turned into a 30% profit in 10 minutes.

My timing was so good I came within minutes of catching the dead lows in the market.

So how did I do it?

Four letters: TICK

Some of you may have heard of the TICK chart before.

Now, I’m going to show you how I combined it with three stocks I’ve had on my watchlist (and still do) to deliver mind-blowing trades.

Timing is Everything

You can have the best trade setup in the world. But it won’t mean a thing if you don’t have the right timing.

Wednesday’s market action had three stocks that were clear outperformers: Cava (CAVA), Nvidia (NVDA), and Costco (COST).

While the S&P 500 was crashing, all of these stocks were either up, flat, or doing better than the S&P 500.

Here’s the thing…I couldn’t just buy these and wait for the markets to turn.

With the amount of selling pressure we were seeing, it’s entirely possible that stocks could have kept falling throughout the day.

So, I needed an edge, something that would clue me into a potential bottom in the markets.

That was the TICK chart.

The TICK chart measures the up ticks minus the down ticks for the around 3,000 stocks traded on the New York Stock Exchange.

I like to think of it as a barometer of the active buying and selling pressure.

When the TICKs turn negative, and start getting below -600, that indicates a sell program is in control.

Conversely, when the TICKs get over 600, it implies a buy program is in charge.

The chart below includes the settings I keep on my platform – a 2-minute timeframe and a 5-period simple moving average (white line).

I want you to look at the left side of this chart. Notice how most of the readings to start the day were below the zero line, often dropping down to -800 or further. The moving average was also comfortably below the zero line as well.

Then, around 11:00 a.m., things changed.

The TICKs moved up to +600 for the first time that day. It then stayed there, bringing the moving average up over the zero line and into positive territory.

Now, take a look at the chart below that puts the S&P 500 index right below the TICK chart.

It’s immediately clear that the indexes found a bottom right as the TICK chart became more bullish.

THIS was my signal to enter the Costco trade. Because up until that point, I didn’t know if the market would keep falling, taking out Costco and everything else with it.

The TICK reversal signal was by no means a guarantee. But, it offered a logical, technical reason as to why the indexes should start to rise.

The next chart below shows how that timing aligned perfectly with Nvidia and Costco finding their bottoms.

But What About CAVA?

Cava was the one odd ball of the group.

As a momentum stock with a high short float, it wasn’t trading with the rest of the market.

It started the day strong and held its gains, even as the S&P 500 fell.

If you look at the 30-minute chart, you’ll see this fell into a more traditional setup I like to play.

Here, we have a stock that’s in a strong uptrend with a nice consolidation pattern and a squeeze (as shown at the bottom with the red dots), indicating a breakout should be imminent.

Since this stock wasn’t falling with the rest of the market, I had a hunch it would still get a boost if the market turned around.

Sure enough, as you can see on the time stamps below, CAVA pushed higher with the rest of the market right after the S&P 500 found a bottom.

The post The One Indicator Every Day Trader Needs appeared first on Trade of the Day.

These markets can be extremely difficult to trade if you don’t understand them.

Every day could bring dozens of opportunities…or just as many pitfalls.

But with the right strategy and know-how, you can spot lucrative setups and capitalize on them quickly.

Today, I want to walk you through two trades I took on Tuesday that demonstrate exactly how I navigate these tricky waters.

One was a momentum play on a high-flying stock, while the other capitalized on a potential short squeeze. Both resulted in rapid profits.

But more importantly, I want to show you how you can learn to spot these opportunities yourself – in real-time, as they unfold.

CAVA (CAVA)

Cava (CAVA) has been a go-to ticker for me this year.

I like this stock because it has a lot of bullish momentum.

With the stock up over 180% year-to-date, it keeps putting in new highs, pulling back slightly, and then punch to new highs.

That’s the kind of price action I like to follow.

Tuesday, I did this using the 78-minute timeframe.

This setup involved a combination of my TPS framework AND some common sense.

CAVA announced earnings that sent shares to nearly $130 after they had already steadily climbed over $100.

Then, we got a short-term pullback that wasn’t too severe.

I watched this price action develop into my TPS framework:

• Strong upward TREND
• Consolidation PATTERN
• SQUEEZE where the Bollinger Bands move inside the Keltner Channel.

Since I was using the 78-minute chart, I went with the options expiring about one and a half weeks into the future.

Sure enough, the stock started to move towards the gap fill, and I locked in some quick profits:

But that wasn’t the only trade I took on CAVA.

Around lunchtime, during the LIVE OPEN HOUSE, I found a fresh setup on the 5-minute chart.

Everything here was the same except for the timeframe.

Since I was working off of a 5-minute chart, I planned on this being a daytrade. So, I bought calls that expired this Friday.

Sure enough, the stock started to slide higher, giving me two excellent exits.

However, this was just one of the opportunities I found on Tuesday.

Let’s take another look at the trade setup from the LIVE OPEN HOUSE.

Summit Therapeutics (SMMT)

This setup was quite different from the one I just showed you in CAVA.

Summit is a stock with a high short float – over 20%.

High short float stocks tend to have short squeezes that cause price to climb rapidly.

Essentially, bearish trades take short positions on a stock like Summit, betting it will go lower.

At some point, when too many are piled in, the stock’s price jumps, in this case because of positive news.

Now, all those short traders are underwater, with many forced to close out their positions to stanch the bleeding.

Short traders exit their positions by buying back the stock, which sends price higher. That forces more traders to close out their positions, creating a cascade of buying.

And that’s what I was looking for in Summit.

The stock had jumped early on cancer news that sent the stock soaring.

After a modest pullback, the stock began to form a squeeze on the 1-minute chart (indicated by the red/black dots at the bottom).

I used this to time my entry and when with the nearest expiration calls I could find, which happened to be in October.

However, because I expected the stock could rise quickly from the short squeeze, I felt that this was a trade capable of turning a nice profit.

And sure enough, a couple of hours after I bought the call options, I was walking away with a nice DOUBLE on the trade.

The post These Two Trades Showcase Different Strategies appeared first on Trade of the Day.

However, we’re seeing a healthy bounce so far this week, and I believe the SPY could move to around 550-551 if it pushes past resistance.

As far as trade setups go, I’ve got a chart with a bull flag pattern that I’m looking to get positioned on.

Click the image below to get that trade.

YOUR ACTION PLAN

Costco (COST) has a great looking 195 minute TPS setup. As you’ll see in the chart below, it has a bull flag with a clear trend and a squeeze. It also has earnings coming up on Sept. 26. I’ll be looking to get in on COST during the week of earnings with a target at a new all-time high around $921.

(Click to enlarge)

If you want more trade ideas like these, there’s still time to join me in Daily Profits Live as part of my Daily Profits Live Open House.

The event is compeltely free, and it’s your chance to trade alongside me all week long.

Yesterday I closed two winning trades, a 38.46% winner on CAVA and another 26.83% winner on CAVA (in one trading day).

Don’t miss out on the next potential winner.

Click here to join me in The Daily Profits chat tomorrow for FREE.

TESTIMONIAL TUESDAY

“Made 30% on CAVA also (IN 1 TRADING DAY). Thanks Nate!”
– 123Michaelg

“STC ORCL strangle @$13.22 good for 34% overnight gain!!! Thank you Bryan B!!!”
– BoomerMC

“A cool 15% WINNER in 1 trading day. In 2.65 (DKNG) out 3.05. Thank you Bryan. A great way to start the day.”
– Gunner

The post A Bull Flag Setup with Upcoming Earnings appeared first on Trade of the Day.

Join him during his FREE Daily Profits Live Open House starting today at 9 AM ET (Sept 9-13th) for a full week of LIVE trading.

No credit card… No limits… Just one FULL week of trading.

This is an extremely rare opportunity to unlock FREE access to one of the top trading rooms on the planet, and last time he did this, members had a chance to cash in on his 1,129% trade idea within just 2 days!

Click here to RSVP NOW – It’s FREE!

See you LIVE in the Daily Profits Live Room in just ONE HOUR!

-Ryan Fitzwater, Publisher

__________________

The market will look to bounce back after a strong sell-off on Friday following weak job numbers, as concerns grew about inflation, the effectiveness of potential Fed policy rate cuts, and the uncertainty surrounding the upcoming election.

As we head into the Presidential debate on Tuesday, The Trade Desk (TTD) emerges as an intriguing watchlist idea.

The Trade Desk is a tech company that provides a platform for digital advertising. They help advertisers buy ad space across various digital channels like websites, streaming services, and mobile apps.

Their specialty is programmatic advertising, which uses advanced algorithms to automate the ad buying process in real-time.

As we approach the Presidential election, The Trade Desk becomes particularly interesting because political campaigns tend to spend heavily on advertising.

Their platform’s ability to target specific audiences precisely is valuable for political messaging.

The shift towards streaming TV also plays into their strengths, as more political ads move to these platforms.

But that’s not all…

The company delivered better-than-expected Q2 results and guidance when it reported in early August, leading to a 7% after-hours jump in share price.

Revenue growth rates were higher than anticipated, suggesting strong momentum could continue into 2025.

Shares shot up from $83 to a high of $105.39 following its earnings release, and despite all the volatility in the market, it’s still trading at the $100 range.

The stock got a fresh daily squeeze on Friday.

A fresh daily squeeze setup indicates a period of low volatility that often precedes a significant price move. This suggests The Trade Desk’s stock might be preparing for another leg up.

In addition, it has stacked EMAs.

The presence of stacked EMAs (Exponential Moving Averages) on both daily and weekly charts is a bullish sign.

When shorter-term averages stack above longer-term ones across multiple timeframes, it typically indicates strong, consistent upward momentum in the stock’s price.

Moreover, the stock is trading close to its highest point over the past year. This proximity to its 52-week high suggests The Trade Desk has maintained its strength and shown resilience, even in the face of recent market volatility.

Together, these indicators suggest The Trade Desk could be well-positioned for further gains, particularly if it capitalizes on the expected increase in election-related advertising spending.

Your Action Plan:

TTD has caught my eye, and I’m watching it closely. If the market shows signs of recovering, I’ll be looking for a potential entry point here.

If I do take it will be with call options in my Daily Profits Live Room.

Normally, access to my Daily Profits Room is closed off for paid-up subscribers.

However, this week, I’m opening up my room for FREE.

In fact, the action starts in an HOUR and will run till Friday.

If you want in, it’s simple.

CLICK HERE AND SIGN UP.

The post Political Spending Ramps Up appeared first on Trade of the Day.

Starting Next Monday, our Lead Technical Tactician Nate Bear will be opening the doors to his Daily Profits Live chatroom for an entire trading week.

Don’t miss out on your chance to trade alongside Nate for FREE for five straight days.

Click here to sign up for Nate’s Daily Profits Live Open House.

Have you ever watched Bob Ross paint?

It’s almost like watching a monk meditate. It’s soothing… and it makes you feel like all is right in the world.

It’s the exact opposite of what many people think of when they picture Wall Street.

They might picture a man in a suit yelling into his phone in a New York City trading pit…

Or an angsty, Ivy League-educated trust fund baby who knows all the insider info and thinks his presence is a gift to everyone around him.

These stereotypes might make for some good Hollywood movies.

But the reality is…

You don’t have to be a “typical” Wall Street pit trader or insider to make winning trades in the market.

Case in point… I’ve never commuted to Manhattan to trade on Wall Street. I started my trading career while working in construction. I’d make trades on my phone in the parking lot as I waited to pick my kids up from school.

I once hit a 111% winner while sitting in front of the school in a line of minivans.

What a time to be alive, right?

This style of trading wound up generating $2.7 million in verified trading profits from a $37,000 account in just four years.

Learning to trade has been an amazing journey.

But I must say… I wasn’t an overnight success.

Like any trader who’s just starting out, I still had to hone my skills. But I was able to do it my way… without sacrificing my family-first lifestyle.

Along the way, I learned that being calm is everything when it comes to trading. Some of my Daily Profits Live members have even referred to my personality as “Bob Ross-like.”

It’s funny to hear myself described that way, since I’m far from a famous painter.

But it’s also funny because I wasn’t always this calm.

In fact, when I first started, I blew up a $15,000 account.

Yep. $15K… gone. Just like that.

I was so upset after that trade that I punched a hole in my wall.

Can you imagine Bob Ross punching his easel?!

That was the moment I knew I had to alter my approach.

I sought help from a community of experienced traders, and it made all the difference. I started trading with less emotion, and I even created my own system for finding winning trades.

Fast-forward to eight years later, and I’m still using these Bob Ross-like, serenity-inducing principles in my trading.

Here are some of my greatest trading lessons… in Bob Ross’ words.

1. “If you want sad things, watch the news.”

Bob Ross once said, “We want happy paintings. Happy paintings. If you want sad things, watch the news.”

Turns out he was right about the “watch the news” part.

When I first started trading, I’d believe whatever I heard in the mainstream media. I’d get all excited when I heard people talking about the next hot stock… and I’d start to panic when they talked about the economy going under.

Later, I discovered…

This low-quality information was just a form of manipulation. After I’d made my trades on the stocks that the media had hyped up, the savvier traders would sell off, leaving me with a loss.

Ouch.

The lesson here is to never blindly trust the news when you’re making your trades.

2. “It’s hard to see things when you’re too close. Take a step back and look.”

I cover this concept almost every day in Daily Profits Live.

Beginner investors have to understand…

The market doesn’t care how much you like a certain company.

The movements of the market are nothing more than reactions to a complex string of information.

How many times have you made a trade only for it to start heading south?

You’re losing money, but you tell yourself, “If I can just hang on for a little while longer, I think I’ll be able to break even.”

It’s at this moment that the warning sirens should start going off in your head.

This is when you need to “take a step back and look.”

You’re not thinking clearly, because you’re hoping the stock will do what you want… and you’re ignoring all logic and reason, which are telling you that the trade is cooked.

The takeaway? Listen to those sirens – they’re telling you it’s time to get out of the trade.

3. “Anytime you learn, you gain.”

I know it sounds cliché, but all my losing trades can be traced back to not following the advice of those first two quotes.

As you continue on your trading journey, understand that you’ll probably still be susceptible to fear and greed.

But the main lesson is to stay true to the fundamentals that have led to consistent winning trades over long periods of time.

And each time you take a loss (and you will take losses, because no trader is perfect), it’s just another opportunity to learn and get better for next time.

YOUR ACTION PLAN

Bob Ross’ way of looking at the world is surprisingly relevant to trading. To let you see how I use these principles in my daily trading, I’m opening the door to my Daily Profits Live trading chat room for FREE for a limited time.

Starting next week, I’ll be opening the doors to his Daily Profits Live chatroom for 5 straight trading days as part of my Daily Profits Live Open House.

This event is completely FREE. And it’s your opportunity to trade alongside me and see how I apply these emotional principles to my own trading.

Click here to sign up for my Daily Profits Live Open House.

The post How to Find “Bob-Ross-like” Calmness as a Trader appeared first on Trade of the Day.

Next Monday, our Lead Technical Tactician Nate Bear is giving subscribers FREE access to all of his trades for 5 straight days as part of his Daily Profits Live Open House.

Last time Nate opened up Daily Profits Live, attendees had the opportunity to make a trade on RILY that lead to a 1,128.92% return in two trading days!

And next week Nate will be looking for a similar trading opportunities.

Click here to sign up for Nate’s Daily Profits Live Open House for FREE today.

Ryan Fitzwater, Publisher

Next week there’s a key catalyst event happening on a tech stock, and I’m currently tracking it in Daily Profits Live for a potential multiple trade setup.

The tech company is Apple (APPL).

Here’s why it’s on my watchlist.

On Sept. 9, APPL will reveal the new iPhone 16 at the “It’s Glowtime” event.

It’s likely that Apple’s generative AI platform, Apple Intelligence, will now be available across the new iPhone line.

Also, APPL’s biggest iPhone assembler, Foxxconn, reported sales of $548 billion for the month of August. It was a record for the month, and a 32.8% increase year over year.

While I always focus on chart patterns first as the basis for my trades, this AiPhone event is a clear catalyst for APPL. I’ll be tracking it for potential new all-time highs leading up into next week.

I already opened one contract on APPL and yesterday closed for a 30% gain in less than 1 trading day earlier this week.

Now I’ll be looking for another run up into the AiPhone event on Sept. 9.

Action Plan: Apple (AAPL) has its AiPhone release event next week and I’m looking for APPL to move higher from oversold levels.

I’m currently building a 3-5 lotto trade in Daily Profits Live, starting with 1 contract. From there I’ll look to build into more positions and capture a run higher into the event next week. The main goal is to take profits before the event.

To see exactly how I’m trading Apple, click here to join Daily Profits Live.

Or, if you want to wait a little longer, I’m hosting my Daily Profits Live Open House starting next Monday.

This will be your rare chance to get all my trades for FREE for 5 straight trading days.

But you’ll have to hurry. I’m only going to be offering the chance to sign up for the open house for the rest of today.

Click here to sign up for the Daily Profits Live Open House now before it’s too late.

The post Ai Event Could be a Trigger Catalyst for This Tech Stock appeared first on Trade of the Day.

Competing head-on with these giants is often a losing battle for individual traders. That’s why I rarely trade on news alone.

Instead, I’ve honed my focus on patterns and setups that level the playing field.

Today, I’m pulling back the curtain on how I used this approach to score a staggering 1,129% return in just two days – on one of Wall Street’s most despised stocks, no less.

This trade not only beat the big firms at their own game but did so in a stock they were actively betting against.

Ready to see how David can still triumph over Goliath in today’s market?

Let’s dive in.

Background: B. RILEY’s Controversial Status

B Riley Financial was one of the most contentious stocks on Wall Street, boasting a staggering short interest of approximately 75%.

This high level of short interest made it a prime target for various short reports, with accusations of fraudulent activity swirling around the company, which still hold true today.

Despite the controversy, I approached this trade from a purely technical perspective, focusing on what I do best: analyzing trading patterns and setups.

The Setup: Why RILY Caught My Eye

While I didn’t have a strong opinion on RILY’s fundamentals, two key factors attracted me to this trade:

• Strong price action
• Extremely high short interest

These elements combined to create an intriguing setup that I couldn’t ignore.

Understanding Short Interest and Its Impact

Short interest represents the number of shares that have been sold short but not yet covered or closed out.

In RILY’s case, a 75% short interest is exceptionally high, indicating that 3 out of every 4 available shares were sold short. This creates a powder keg situation where any positive news can trigger a dramatic price increase as short sellers rush to cover their positions.

The Power of Technical Analysis in Volatile Situations

While fundamental analysis focuses on a company’s financial health and business model, technical analysis examines price action and trading patterns.

In highly shorted stocks like RILY, technical analysis can be particularly powerful as it helps identify potential breakout points and entry opportunities.

The Trade: Timing and Execution

On April 22, 2024, I made my move. I purchased options set to expire in just four days – the $22 calls for $0.65. This decision was based on my analysis of the stock’s technicals and the potential for a significant move given the high short interest.

The Unexpected Catalyst: Sometimes It’s Better to Be Lucky Than Good

As the saying goes, “It’s better to be lucky than good.” In this case, I was fortunate enough to be both. On April 24, 2024, just two days after entering the trade, RILY released an audited report.

This report effectively cleared the company of any unusual or illegal behavior, acting as a powerful positive catalyst.

The result?

The stock exploded upward, triggering a massive short squeeze.

The Outcome: A Live 1,129% Gain

The timing couldn’t have been better. During my FREE Open House week, I was able to close out this trade live in front of my readers, realizing a staggering 1,129% gain.

This real-time trade showcased the potential of well-timed options trades in volatile situations.

By the way, my next FREE OPEN HOUSE WEEK is coming up, make sure to register now.

It starts on September 9th and will run till the 13th.

One full week of live action, click here to reserve your spot today.

YOUR ACTION PLAN

Several elements came together to make this trade successful:

1. High short interest: Created potential for a powerful short squeeze
2. Positive catalyst: Unexpected news acted as a trigger for the squeeze
3. Strong-looking chart: Technical analysis suggested potential for upward movement
4. Cheap weekly options: Allowed for significant leverage with limited capital at risk

While not every trade will result in such dramatic gains, this case study illustrates the potential of combining technical analysis with an understanding of market dynamics like short interest.

It also highlights the importance of being prepared to capitalize on unexpected events.

Remember, successful trading is about more than just luck – it’s about putting yourself in a position to benefit when opportunity strikes.

P.S. From September 9th to 13th, I’m opening up my Live Trading Room to a select group of readers – and it won’t cost you a penny.

That’s right.

You’ll have the opportunity to trade alongside me for an ENTIRE WEEK, absolutely FREE.

This is your chance to:

• Watch me dissect the market in real-time, focusing on patterns and setups
• See how I identify and execute high-potential trades, even in controversial stocks
• Learn my exact strategies for turning small investments into massive gains
• Understand how to leverage high short interest for potential breakout trades

But here’s the thing – space is extremely limited, and spots are filling up rapidly.

Don’t miss this rare opportunity to see how David can triumph over Wall Street Goliaths.

Click here now to reserve your spot at zero cost before it’s too late.

The post How David Beat Goliath: $650 to $7,988 in 48 Hours appeared first on Trade of the Day.

However, day’s like yesterday offer a great opportunity.

You see, when the market is super strong or super weak stocks for the most part tend to move in the same direction.

But when it’s chopping around, it allows you to find stocks that are relatively strong or weak rather easily.

One of those stocks that outperformed the market in a big way is my top watchlist idea for today.

I’m talking about Coupang (CPNG), which surged more than 8% while the broader market barely budged.

For those unfamiliar, Coupang is a South Korean e-commerce powerhouse. They operate an online marketplace offering everything from electronics to groceries, and they’re known for their lightning-fast delivery service.

Think of them as South Korea’s answer to Amazon, but with a focus on same-day or next-day delivery through their extensive logistics network.

Now, let’s talk about what got Wall Street’s attention. CLSA analyst Brian Lee just upgraded Coupang to Outperform from Hold, slapping a juicy $31 price target on it.

That’s a massive jump from the previous $18 target. Lee’s crystal ball shows Coupang’s sales growing at a 17% clip annually for the next five years.

He’s betting on industry growth and market share gains as the e-commerce landscape in South Korea consolidates.

Lee expects Coupang’s operating margin to more than double, from 1.9% in 2023 to over 5% in 2027.

In his words, Coupang is becoming the “last man standing” in the Korean e-commerce arena, potentially gobbling up a 35% market share by 2028.

To be clear, I would never take a position based on what an analyst says or on a news headline. The majority of my trading decisions are based on price action and setups.

I want to be aware of catalysts, but make my entries and exits based on what I see in the charts.

This catalyst, combined with the stock’s technical strength, is why Coupang just landed on my watchlist.

Here’s what caught my eye from a technical standpoint:

Fresh Daily Squeeze:

A “squeeze” is a period of low volatility where the Bollinger Bands contract and move inside the Keltner Channels. This compression often precedes a significant price movement.

When we say there’s a “Fresh Daily Squeeze,” it means this pattern has just appeared on the daily chart.

During a squeeze, the stock is essentially coiling up like a spring. The longer the squeeze lasts, the more potential energy builds up.

When the squeeze “fires” or releases, it often results in a strong price move in either direction. Traders watch for the direction of the initial move to determine whether to go long or short.

Stacked Daily EMAs (Exponential Moving Averages):

EMAs are trend-following indicators that give more weight to recent price data. When we say the EMAs are “stacked,” we’re typically looking at multiple EMAs of different lengths (e.g., 8-day, 21-day, 50-day, 200-day).

In a bullish stacked configuration, you’ll see the shorter-term EMAs above the longer-term ones, with price above all of them.

For example: Price > 8 EMA > 21 EMA > 50 EMA > 200 EMA

This arrangement suggests that the recent price action is stronger than the longer-term trend, indicating strong upward momentum across multiple timeframes.

Breaking 52-Week Highs:

When a stock breaks above its 52-week high, it means it’s trading at a price not seen in the past year. This is significant for several reasons:

a) Psychological impact: It can attract more buyers who see the stock making new highs.

b) No overhead resistance: Anyone who bought the stock in the past year is now in profit, reducing potential selling pressure from those looking to “break even.”

c) Momentum indicator: Stocks making new highs often continue to do so, as per the momentum principle in technical analysis.

Relative Strength:

Relative strength compares a stock’s performance to a benchmark (usually the overall market) over a specific period.

When a stock shows relative strength, it’s outperforming the broader market.

In this case, while the overall market was flat, CPNG rose by 8%. This outperformance is notable because:

a) It suggests that buyers are specifically interested in CPNG, not just riding a broader market trend.

b) It indicates that CPNG might be resistant to market downturns.

c) Stocks that outperform in flat or down markets often lead the charge when the market turns bullish.

This relative strength is particularly impressive in a flat market, as it suggests that investors are rotating into CPNG from other stocks.

Your Action Plan:

While I haven’t taken a position in CPNG, it’s definitely on my watchlist. Here’s what I’m looking at and what you might consider:

1. Watch for Continuation: After breaking out, stocks often continue their trend. I’ll be watching to see if CPNG can hold above its previous 52-week high.
2. Monitor Volume: Increased trading volume can confirm the strength of the breakout.

And if I do move on this, you can find this trade in my Daily Profits Live Room.

P.S. Speaking of the Daily Profits Live Room, I’m opening the doors up for everyone!

That’s right…

On September 9 to 13, I’m having a FREE OPEN HOUSE.

If you’re reading this, you’re on my special invite list.

All you have to do to secure your spot is click here and register.

Last time I held one of these, I nailed a 1,129% winner in the ticker symbol RILY in 48 hours.

Now, I can’t promise those types of fireworks again. But with market volatility picking up, I wouldn’t be surprised if we find something juicy to trade.

So if you want to trade alongside me for a FULL WEEK at absolutely zero cost to you.

CLICK HERE AND SIGN UP.

The post Choppy markets make finding strong stocks easy appeared first on Trade of the Day.

Next Monday, our Lead Technical Tactician Nate Bear is giving subscribers FREE access to all of his trades for 5 straight days as part of his Daily Profits Live Open House.

Last time Nate opened up Daily Profits Live, attendees had the opportunity to make a trade on RILY that lead to a 1,128.92% return in two trading days!

And next week Nate will be looking for a similar trading opportunities.

Click here to sign up for Nate’s Daily Profits Live Open House for FREE today.

Ryan Fitzwater, Publisher

September has historically been a weak month for stocks.

Yesterday the indexes held true to that stat and got off to a slow start.

The Dow Jones slid 1% or over 400 points, and the S&P fell 1.4, respectively.

Because of the slide, I was looking for stocks that didn’t care about the recent pullback.

And thanks to my S.A.M. Scanner, I found the perfect candidate.

The ticker on my watchlist was Post Holdings (POST).

As you’ll see in the chart above, POST clearly doesn’t care the market is pulling back. It’s been trending upward and has a year-to-date gain of 31.4%.

It also closed at $115.77 on Friday, which was near its recently achieved 52-week high of $117.24. That’s impressive momentum.

But what really stood out to me on POST was its chart. It had four A+ squeezes, meaning the stock was in rest mode and the volatility was compressing. I saw this as the perfect time to get in before it continues its next uptrend.

I ended up buying the calls on POST and closing the trade later that day for a 15% gain in less than 1 trading day.

Action Plan: With September starting off slow, I’m only focusing on A+ setups and right now in Daily Profits Live. I’ll be looking at more potential trades on POST.

P.S. If you’d like to see more realtime trade ideas like POST in action, I have an exciting announcement for you.

Next week I’ll be opening the doors to my Daily Profits Live chatroom for FREE for 5 straight days.

It’s all part of my Daily Profits Live Open House.

I’ve only given FREE access to my live trading platform once this year. Back in April, open house attendees had the opportunity to make a trade on B. Riley Financial (RILY) that lead to a 1,128.92% return in two trading days!

And I will be looking for more of these big trade opportunities in next week’s open house.

Don’t miss out on this free opportunity to join me for FREE for 5 days and get access to another massive potential winner.

Click here to get on the guest list to Daily Profits Live Open House today.

The post September Pullback? This Stock Doesn’t Care appeared first on Trade of the Day.