Trade of the Day https://mtatradeoftheday.com/ Restoring the Lost Art of Smart Speculation Fri, 03 May 2024 21:02:15 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.3 This Secret Helped me Retire Many Times Over https://mtatradeoftheday.com/this-secret-helped-me-retire-many-times-over/ https://mtatradeoftheday.com/this-secret-helped-me-retire-many-times-over/#respond Fri, 03 May 2024 21:00:09 +0000 https://mtatradeoftheday.com/?p=15414 Now it’s what I use to identify which companies are most likely to succeed

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Editor’s Note: It might sound hard to believe… but 30 years ago, Oxford Club Chief Investment Strategist Alexander Green discovered the most intuitive, easy-to-use secret to making money in the stock market.

And in today’s guest article, he’s revealing exactly what that secret is.

Plus, he’s giving readers the chance to get exclusive access to his top stock play for 2024 based on this strategy.

Click here to learn more about his No. 1 insider play for 2024.

– Ryan Fitzwater, Publisher


In today’s world, the financial rewards for success in the stock market are so huge – and the competition for them is so intense – that an investor needs an edge.

Not just a perceived edge, but an actual one.

And the best edge, in my view, is to invest in the same stocks that the insiders are buying with their own money at current market prices.

Insiders have purchased stock in record numbers as of late. Yet the typical punter is doing the exact opposite.

Millions of investors have bailed out of stocks because they couldn’t take the pain anymore. (And, in doing so, they turned paper losses into actual losses.)

Corporate insiders couldn’t take the pain anymore either.

They couldn’t stand to see their companies’ shares selling at fire-sale levels without doing something about it.

And so they did…

Yet the spike in insider purchases coincided with investors pulling cash from their equity funds.

The punters are acting on emotion. (Fear, particularly.)

The insiders are acting on numbers, analysis and reason. And perhaps a different emotion. (Greed.)

One of the best strategies you can follow is to ride the coattails of knowledgeable insiders.

Why? Because they have access to all sorts of information, like…

  • The direction of sales since the last quarterly report
  • New products and services in development
  • Any expansion plans
  • Potential mergers and acquisitions
  • Whether the company has gained or lost any key customers
  • The status of outstanding litigation
  • Whether the company will put itself up for sale
  • Plans to take the company private

…And plenty of other good stuff that those of us on the outside looking in may not fully understand.

That’s why the Securities and Exchange Commission requires corporate insiders – officers, directors and beneficial owners – to file a Form 4 within two business days of any purchase or sale, detailing the number of shares bought, on what date and at what price.

Making this information public at least levels the playing field.

(You may not know why the insiders are buying. But at least you can see that they are.)

If you want to increase your stock market returns, you need to know what the insiders are doing.

Buying stocks that insiders are bailing out of or selling stocks that they are eagerly buying is a fundamental mistake.

Even when corporate fundamentals are checkered or poor, if the insiders are buying heavily, it is generally a sign that the problems are temporary, and the stock is set to press higher.

Indeed, plenty of academic studies have confirmed that stocks with heavy insider buying tend to outperform the broad market in the months that follow.

Do you know which stocks the insiders are piling into right now? You should.

Because those are the companies whose shares are most likely to perform best in the weeks and months ahead, no matter what the broad market does.

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YOUR ACTION PLAN

Knowing where insiders are putting their money has been my most coveted strategy for making consistent profits in the market for the last 30 years.

And right now, I’m giving readers exclusive access to my No. 1 insider stock of 2024, plus all my recommendations in 2025 through my VIP email list.

Click here to unlock my Insider Alert service.


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FUN FACT FRIDAY

A historic investment in themselves: Yesterday Apple announced a plan to buy back as much as $110 billion of its stock in the largest repurchase ever. The size of that buyback is equivalent to the market cap of several notable companies, including Boeing (BA) and Deere & Co. (DE). The previous record was held by Meta (still known as Facebook at the time) when it announced a $50 billion buyback in 2021.


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Apple Juices the Market https://mtatradeoftheday.com/tech-giant-up-6-in-premarket-trading-as-all-three-indexes-close-higher/ https://mtatradeoftheday.com/tech-giant-up-6-in-premarket-trading-as-all-three-indexes-close-higher/#respond Fri, 03 May 2024 12:22:00 +0000 https://mtatradeoftheday.com/?p=15405 Good Morning Wake-Up Watchlisters! While you’re sipping coffee you’ll see stock futures got a big boost on Friday following Apple’s earnings (more on that below). The three major stock indexes ended Thursday higher, and now investors will be looking at the upcoming April jobs report due Friday morning. Here’s a look at the top-moving stocks … Continued

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Good Morning Wake-Up Watchlisters! While you’re sipping coffee you’ll see stock futures got a big boost on Friday following Apple’s earnings (more on that below). The three major stock indexes ended Thursday higher, and now investors will be looking at the upcoming April jobs report due Friday morning.

Here’s a look at the top-moving stocks this morning.

Apple (Nasdaq: AAPL)

Apple is up 6.08% in premarket trading after it posted revenue of $90.8 billion, down 4% from a year ago but still slightly above Wall Street’s expectations of $90.5 billion. The iPhone is always key, with the device accounting for more than half of Apple’s total revenue. Sales for the iPhone tumbled 10.5% in the quarter, with results pressured by weaker demand in China.

Post-earnings surges are what our Lead Technical Tactician Nate Bear focuses on in Profit Surge Trader.

Click here to see how he’s playing the latest earnings reports from big companies.

Fortinet (Nasdaq: FTNT)

Fortinet is down 9.33% in premarket after the cybersecurity firm saw a decline in revenue. Product revenue fell 18.3% year over year to $1.35 billion, beating the analyst consensus estimate of $1.338 billion. Total billings were $1.41 billion for the first quarter, a decrease of 6.4% compared to $1.50 billion for the same quarter.

Yesterday our Head Trading Tactician Bryan Bottarelli got positioned on FTNT in The War Room.

Click here to unlock that trade.

Amgen (Nasdaq: AMGN)

Amgen Inc. is up 13.66% in premarket trading after the biotechnology company voiced positive news regarding interim analysis of a Phase 2 study for a injectable weight-loss drug called Maritide. Amgen, however, provided little additional information on the actual data, and said it plans to start a late-stage study later this year.

Block (Nasdaq: SQ)

Block is up 7.18% in premarket trading after getting a revenue boost in the first quarter from Bitcoin. The Cash App mobile wallet and the Square merchant business said each month it will be investing 10% of its gross profit from Bitcoin products into buying more Bitcoin. Revenue in the period rose 19% to nearly $6 billion.

Those are the biggest stock movers for today.

Happy trading!

The Wake-Up Watchlist Research Team

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Play Short Squeezes “To The Moon” https://mtatradeoftheday.com/play-short-squeezes-to-the-moon/ https://mtatradeoftheday.com/play-short-squeezes-to-the-moon/#respond Thu, 02 May 2024 21:00:31 +0000 https://mtatradeoftheday.com/?p=15393 See how a smart speculation turns into a massive winner

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One of the most powerful – and unique – situations on Wall Street involves a stock engaged in a “short squeeze.”

By definition…

A short squeeze occurs when the price of an asset rises sharply – which triggers the traders who sold short on that stock to close their positions.

In other words…

If any given stock has a significant amount of short sellers (meaning investors are betting on its price falling) – and those short sellers decide that they’re wrong – they cover their short position – which “squeezes” the stock higher.

This moment – when the shorts cover their position – creates a short squeeze – which moves the price of an asset unexpectedly higher.

According to Investopedia…

Short Squeeze

Short squeezes don’t happen every day.

But when they do occur, the gains can be exhilarating.

This is exactly what happened earlier this week inside The War Room.

Here’s what happened…

Back in early April, I offered a speculative idea on shares of Canopy Growth (CGC) – the Canadian cannabis producer.

They had a short % of float around 12%. But there was pending news that could really impact the company.

You see, CGC was preparing to jump into the U.S. market – helped by the Biden administration, who could ease some current restrictions.

Germany just made a similar move, so I speculated that this could be a play worth making ahead of any coming news.

Here is the buy alert I posted inside the War Room:

Image of a buy alert post for Canopy Growth (CGC) by Bryan Bottarelli in The War Room

Then, we waited…

And nearly a month later, the short squeeze speculation paid off.

As you can see below, CGC moved from $8.00 per share up to $14.59 per share – and those War Room members who were holding calls hit a big winner.

'To the Moon Action on Canopy Growth'

Here’s what they reported…

“In (CGC) at 1.85 (after I averaged down last week) Out for 4.30. 132% gain (in 24 trading days). Thank you Bryan!.” – DeacNJax

“CGC 3May 10c – In .91 – Sold ¼ at 3.65 +300% gain (in 24 trading days) – I’m going to see what happens overnight with the remainder. I love a free ride!” – Casu

“Got in late so did a modification to the CGC trade 3May calls entered .80 exited at 1.89 (135% gain in 24 trading days.) Thanks!” – Jacob111

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YOUR ACTION PLAN

If you’re ready to start trading these types of explosive short squeeze plays, then it’s time you joined us inside The War Room. Inside the room is the only way for you receive these trades as they happen – in real time – and today, you’re invited to join our community. To get started, click below!

Yes! I Want to Be In The War Room for Short Squeeze Winners!


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Place Your Bets, Apple Earnings Tonight https://mtatradeoftheday.com/i-want-to-focus-on-clear-trends-whether-bullish-or-bearish/ https://mtatradeoftheday.com/i-want-to-focus-on-clear-trends-whether-bullish-or-bearish/#respond Thu, 02 May 2024 17:30:00 +0000 https://mtatradeoftheday.com/?p=15401 Here's the truth behind trading earnings and why it's a gamble...

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Take a look at the image below…

As of March 2024, 27 Wall Street firms are dedicating analysts to cover Apple (AAPL).

Despite the intense scrutiny on Apple, does anyone truly know how the stock will perform after it releases earnings?

According to the options market, market makers expect a +/- 4% move.

But how right have the market makers been this earnings season?

Let’s take a look.

For example, they predicted:

  • A 12.8% move in SMCI the other day, yet it overshot by 18%.
  • A 7.7% move in SBUX, but it declined by 17.87%
  • They predicted a 7.7% move in AMZN, yet it only closed at 2.28%.

Whether you’re bullish or bearish…understand that trading earnings is a gamble.

In many cases, an all-or-nothing bet.

But most importantly, it’s not a repeatable process.

That said, I love trading earnings stocks.

Just not ahead of the earnings announcement.

I wait for the dust to settle and find my levels…then execute.

That’s precisely what I did in CVNA this morning. The options market was implying a 16.1%, and like many stocks this earnings season, they were dead wrong, as the stock surged by 35%.

As traders, we have three objectives.

  1. Find setups
  2. Define risk
  3. Take shots

And some of the best setups can be found right after a company releases earnings.

Which is exactly what my One Ticker Payouts strategy is all about.

It capitalizes on earnings plays while eliminating some of the aspects that make earnings trading so risky, such as the “volatility crush” and the all-or-nothing gamble.

I prefer to navigate the aftermath when the smoke has cleared, but the opportunity remains ripe.

I don’t just jump into a play if the stock is raging…I want to see if it can consolidate after making the big move.

If it can hold the move and trade sideways, that’s an indication that it might be ready for another leg higher. 

And that’s something I saw in CVNA this morning. 

If it’s jumping around…I don’t want to touch it. 

I want to focus on clear trends, whether bullish or bearish. It doesn’t matter…just as long as the trend is clear. 

This approach is the reason I have a 87.5% win rate with all my One Ticker Payout trades in 2024. 

So… will I be trading Apple ahead of earnings?

Not today…

But if it surprises with earnings and exhibits sustainable momentum after tomorrow’s earnings announcement, you better believe I’ll be looking at some potential trades. 

And, of course, I’ll utilize the One Ticker Payouts strategy if I decide to trade it. 

If you’re tired of giving money to the market from earnings trades, then it’s time to look at a different way to play them. 

We’re still very early into earnings, with some big names still remaining, like Nvidia, Apple, and Coinbase. 

So click here to discover how the One Ticker Payouts strategy can set you up for success this earnings season. 

 

 

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The “JPow Pop…” https://mtatradeoftheday.com/earnings-and-fed-chair-jerome-powells-latest-decision-pushes-markets-upward/ https://mtatradeoftheday.com/earnings-and-fed-chair-jerome-powells-latest-decision-pushes-markets-upward/#respond Thu, 02 May 2024 11:51:00 +0000 https://mtatradeoftheday.com/?p=15390 Good Morning Wake-Up Watchlisters! While you’re sipping coffee you’ll see stock futures advanced on Thursday as more corporate earnings pour in and latest Fed news eases markets. Yesterday Federal Reserve Chairman Jerome Powell ruled out any interest rate hikes for the forseeable future despite stubborn inflation rates. Yesterday our Head Trading Tactician Bryan Bottarelli took … Continued

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Good Morning Wake-Up Watchlisters! While you’re sipping coffee you’ll see stock futures advanced on Thursday as more corporate earnings pour in and latest Fed news eases markets. Yesterday Federal Reserve Chairman Jerome Powell ruled out any interest rate hikes for the forseeable future despite stubborn inflation rates.

Yesterday our Head Trading Tactician Bryan Bottarelli took advantage of the “JPow pop” in The War Room. He closed two winning trades, including a 13.94% gain on FSLY in less than 1 trading day and a 9.63% gain on UPWK in 1 trading day.

Click here to see how Bryan closes trades for gains in less than 24 hours in The War Room.

Here’s a look at the top-moving stocks this morning.

Carvana (NYSE: CVNA)

Carvana is up 37.38% in premarket trading after the online car retailer slayed its earnings, while also promising better results ahead. Shares came in 32% higher at $114.70. Revenue was at $3.06 billion, up 17% from a year ago. The stock had been consolidating since March, but is now set to shoot higher.

Qualcomm Incorporated (Nasdaq: QCOM)

Qualcomm is up 5.11% in premarket after posting strong earnings due to diversification efforts paying off. The San Diego-based company earned an adjusted $2.44 a share on sales of $9.39 billion in the quarter ending March 24. For the current quarter, Qualcomm expects to earn an adjusted $2.25 a share on $9.2 billion.

eBay Inc. (Nasdaq: EBAY)

EBay is down 3.37% in premarket trading despite solid first-quarter earnings. The online marketplace company’s second-quarter guidance fell short of estimates, with the latest results showing eBay continues to struggle with top-line growth. For the June quarter, eBay is projecting revenue of between $2.49 billion and $2.54 billion, which was below Wall Street estimates of $2.56 billion.

Yesterday our Head Trading Tactician Bryan Bottarelli got positioned on an overnight trade on EBAY in The War Room.

Click here to unlock that trade.

DoorDash (Nasdaq: DASH)

DoorDash is down 11.74% in premarket trading despite beating revenue expectations of $2.45 billion by posting revenue of $2.51 billion. However, the company’s weak outlook was just shy of estimates, forecasting second-quarter gross order value of $19 billion, which was below FactSet estimates for $19.22 billion.

Those are the biggest stock movers for today.

Happy trading!

The Wake-Up Watchlist Research Team

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How to Trade the Market’s #1 Fear https://mtatradeoftheday.com/how-to-trade-the-markets-no1-fear/ https://mtatradeoftheday.com/how-to-trade-the-markets-no1-fear/#respond Wed, 01 May 2024 21:00:45 +0000 https://mtatradeoftheday.com/?p=15384 Is Stagflation back? The markets are starting to think it’s a real possibility

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Last week, Bryan and I mentioned several catalysts lining up for us this week in Catalyst Cash-Outs live.

But first – it’s important to address an elephant in the room.

Yesterday, the Dow was down 300 points, and some of the indexes were down 1% on the day. That’s a pretty sizable drop.

Because of this recent selloff, I believe traders should be focused on one thing this week… Stagflation.

The term “Stagflation” hasn’t popped up for a while. But here’s everything you need to know about how it affects the markets.

What is stagflation?

Stagflation is a period where you have lower growth, and higher inflation.

Right now, the markets are worried about entering a period where costs increase, which makes the Fed more likely to keep interest rates high.

Combine that with rising yields and consumer confidence dropping for the first time in awhile, and you have a recipe for stagflation fears. Stagflation is not good for stocks, because it’s the worst possible case for the economy.

However, it’s important to remember that the market is just STARTING to think about the POSSIBILITY of stagflation. So it’s not there yet.

Over the last 2 weeks, we’ve been adjusting our trades accordingly in preparation. We recently got positioned on safe-haven metals like gold and silver.

In fact, two weeks ago I got in at a great entry point on the low for Franco Nevada, and as you’ll see by the chart below, it’s already looking strong.

Franco Nevada (FNV) Trending Up

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YOUR ACTION PLAN

This week, Bryan and I focused on the JOLTs report in Catalyst Cash-Outs Live. We’ve discovered the JOLTS report as one of the most potent government reports for the strongest potential market moves. And we have a slick strategy to take advantage of any job, inflation or stagflation related news. It works whether the market goes up OR down – you just need to a BIG move to see profits.

Today, we saw that move happen and booked an overnight win!

Click here to see exactly how we’re playing the JOLTS report.


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Not Today, Oatmilk Latte… https://mtatradeoftheday.com/starbucks-stock-falls-in-premarket-trading-after-lower-than-expected-sales-in-latest-earnings-report/ https://mtatradeoftheday.com/starbucks-stock-falls-in-premarket-trading-after-lower-than-expected-sales-in-latest-earnings-report/#respond Wed, 01 May 2024 12:28:00 +0000 https://mtatradeoftheday.com/?p=15381 Good Morning Wake-Up Watchlisters! While you’re favoring home-brewed coffee over expensive lavendar lattes (more on that below) you’ll see stock futures fell on renewed worry over interest rates Wednesday. The Federal Reserve’s policy decision is due later today, and the last time Fed Chair Jerome Powell spoke, he showed a lack of progress in bringing … Continued

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Good Morning Wake-Up Watchlisters! While you’re favoring home-brewed coffee over expensive lavendar lattes (more on that below) you’ll see stock futures fell on renewed worry over interest rates Wednesday. The Federal Reserve’s policy decision is due later today, and the last time Fed Chair Jerome Powell spoke, he showed a lack of progress in bringing down inflation. Earnings from tech companies were mixed but megacap Amazon rose 1.7% after earnings with revenue jumping 13%.

With earnings season chugging along, our Lead Technical Tactician Nate Bear just kicked off what he’s calling a “100-day AI trading sprint.” This year the artificial intelligence market is projected to reach over $350 billion. But Nate isn’t concerned about the future, he’s focusing on what’s happening right now in Ai.

Click here to see how Nate’s deep dive into the current Ai market could score you gains of 203% in 2.5 hours… 50% in 18 minutes and 295% overnight.

Here’s a look at the top-moving stocks this morning.

Pinterest (NYSE: PINS)

Pinterest is up 16.65% in premarket trading after skyrocketing past its earnings forecast. The commerce-driven social media site posted revenue of $740 million, which was up 23% from the year earlier period. Management had forecast $690 million to $705 million. It ended the quarter with 518 million monthly active users, up 12% from a year earlier.

Starbucks (Nasdaq: SBUX)

Starbucks is down 13.27% in premarket after seeing sales fall for the first time since 2020 as half-off deals and new lavender lattes weren’t enough to entire increasingly budget-conscious consumers. The coffee company cut its full-year revenue growth forecast to low single-digits and CEO Rachel Ruggeri cited colder-than-usual weather in January and a more cautious consumer as reasons for the dip.

The truth is a stock going down isn’t necessarily a bad thing if you know this one simple trick. Our Head Trading Tactician Bryan Bottarelli has a timing pattern that works during bull and bear markets.

Click here to see how Bryan made 246% total gains during the COVID crash with this strategy today.

CVS Health (Nasdaq: CVS)

CVS is down 12.13% in premarket trading after rising medical costs over the past few quarters due to higher demand hurt U.S. health insurers. The Medicare Advantage challenges let to net income dropping to $1.11 billion from $2.14 billion. It also cut its earnings forecast for 2024 to at least $7 from at least $8.30.

Earnings are the common time to get in on a stock. However, there are plenty opportunities AFTER earnings to make profits as well. Our Lead Technical Tactician Nate Bear follows what he calls the “post-earnings surge” pattern which provides him ample opportunities to trade multiple winners on just one stock. Nate has a 87.5% win rate with this strategy in 2024.

Click here to see how Nate trades these gap ups after an earnings surprise.

Skyworks Solutions (Nasdaq: SWKS)

Skyworks is down 15.09% in premarket trading after reporting second-quarter revenue of $1.05 billion, which was within the company’s target range of $1.02 billion to $1.07 billion. But CEO Liam Griffin said the company in its second quarter saw “below normal trends” in its mobile phone business “with lower-than-expected end market demand.” Now it sees revenue of $900 million, below consensus of $1.02 billion.

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An “A+” Pre-Earnings Squeeze Play https://mtatradeoftheday.com/an-a-preearnings-squeeze-play/ https://mtatradeoftheday.com/an-a-preearnings-squeeze-play/#respond Tue, 30 Apr 2024 21:00:58 +0000 https://mtatradeoftheday.com/?p=15369 See why I’m looking for a move higher on this retail company and for the squeeze to keep firing

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After a week of volatility, the indexes bounced back thanks to strong tech earnings.

But I’m not trying to guess which direction the market will go from here.

Instead, I’m looking for bullish setups using my own DPS Scanner.

And in today’s video, I have a new trade setup with an “A+” chart and a daily squeeze.

Click the image below to get the trade.

Will ELF Soon Track the Downside Move of Ulta?

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YOUR ACTION PLAN

Costco (COST) has a daily squeeze and an “A+” setup according to my chart tracking system. It also has earnings coming up, so right now I’m looking for a run higher into earnings and for the squeeze to keep firing along. Earnings are scheduled for May 30, so I’m using the 5/31 expiration with prices around the $717-723 buy zone.

Costco (COST) Chart(Click to enlarge)

For more trade setups like these, I recommend joining me in Profit Surge Trader. With earnings in full swing, I’m following the “post-earnings surge” pattern to trade ONE TICKER over and over again for maximum potential gains. I have an 87.5% win rate in 2024 with this service, and there’s still time to get access to my next pick on Monday, May 6.

Click here to join One Ticker Payouts today.

P.S. I love answering your questions. It’s the best and most rewarding part of my gig. If you have a ticker or chart you want me to break down – or just a general trading question – please email me at feedback@monumenttradersalliance.com. I’ll let you know my thoughts on a few submissions in a future video.


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TESTIMONIAL TUESDAY

“Here’s a summary of what I did with RILY. Got into a swing trade (May 17 25C) on 3-29 and 4-6 for an average entry price of 2.60 (4 contracts). Sold two on Tuesday @ 8.40 for more than a double, sold one yesterday @ 10.10 and just sold the last one @ 12.70 for a total gain on the trade of $2945 (in 2 trading days). Made $310 on other trades in RILY. I love this room!! Thanks Nate B.”
– Spaceman Snoopy

“SNAP In 1.59 out 3.40 quick double (113% overnight gain) thanks BB TDOC waiting.”
– Jack M

“In @ 1.85 on 2-9-24 out @ 0.77 for a 57.8% win (on NEM in 93 trading days). Thanks again Karim.”
– dave1st1ret


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From Scan to Plan: Building a Winning Trade with Vertiv Holdings (VRT) https://mtatradeoftheday.com/most-traders-spend-more-time-trying-to-find-playable-setups-then-actually-planning-tham/ https://mtatradeoftheday.com/most-traders-spend-more-time-trying-to-find-playable-setups-then-actually-planning-tham/#respond Tue, 30 Apr 2024 18:00:00 +0000 https://mtatradeoftheday.com/?p=15373 Unveiling the A+ Setup on Our Radar

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Unlike most people, I’m not waiting for the Fed announcement to start looking for trades…

…but I can’t ignore its potential impact either.

Take Vertiv Holdings (VRT) for example.

This stock has been an absolute monster stock lately.

In the past two weeks, it’s jumped 26% …more than 5x the Nasdaq 100.

I used that strength to knock out some killer trades in the LIVE ROOM last week.

So, I was pretty excited when it popped up on my scanner S.A.M. AI-Powered Trading Scanner for the second week in a row.

But if I wanted to play this setup, I needed to make some adjustments to my trading plan.

Most of you probably assume that means cutting your position size.

And while that’s a big part of it, there are other key changes I made that anyone trading this week should consider.

Assessing the Risk

Before I can make any adjustments, I need to get an idea of what I might expect this week.

That doesn’t mean trying to guess where the Fed might send markets.

Rather, I want to clearly define my setup for the stock.

So, let’s take a look at the 30-minute chart which is where S.A.M. AI-Powered Trading picked up on the latest trade.

This chart gives us a clean look at an A+ Setup.

Listing all the components, we’ve got:

  • Strong upward TREND
  • Clear consolidation PATTERN
  • A SQUEEZE indicated at the bottom with the dots turning red
  • A STACK of the exponential moving averages with the 8 on top of the 21, which is on top of the 55.

You can also see the momentum shifting higher down at the bottom where the bars coming out of the squeeze indicator are light blue and increasing in size.

Taken together, this tells me there is a lot of buying momentum behind this stock.

With the pattern defined, and the moving averages marked, we can assess where a potential profit target might be.

To do that, I create a 127% extension from the range.

Using the high and the low, I draw the extension using the Fibonacci tool, and arrive at $96.29.

For my stop out area, I’m looking at the lower end of the pattern or the lower Bollinger Band. In this chart they’re close enough together that it’s basically the same thing, around $92.75.

Now that I have my parameters set up, I can assess my risk and trade potential.

Typically, I like to enter a trade between the 8 and 21 EMA, which is what I did, putting the stock at roughly $94.

If I took straight shares, my risk and reward would be:

  • Risk = $94 – $92.75 = $1.25
  • Reward = $96.29 – $94 = $2.29

This gives me a nice setup with almost 2x the potential reward as the risk.

With that in mind, I can now structure the trade.

Crafting the Play

This trade is built off the 30-minute chart. That means it should finish within days, not weeks, which makes Friday expirations this week or next week ideal.

Sooner expirations come with more volatility, but the cost is less.

So, how do I decide how many contracts to purchase?

Here’s an easy way to think about it.

Let’s say on a normal trade I’m willing to lose $1,000.

Since this one comes with more risk from the Fed, I’d cut that in half to $500.

I’d split that $100 towards this week’s expiration and $400 towards next week’s expiration.

Both of these trades are riskier than normal. However, the expirations for this Friday are going to pay out big or be worth nothing. The ones for next Friday will probably still have some value.

So, I adjust for the risk of the overall setup first. Then I split the amount I’m willing to lose amongst the expirations accordingly.

For the expirations this Friday, I’d buy as many contracts as $100 would get me (or close to it).

For next week’s expirations, I’d have to figure out how much value might be left at the end of this week if the stock were to fail.

You can use the calculators on your broker’s platform for this or just ballpark it at 20%.

Assuming I’d be able to recapture 20% of the value, I’d purchase $400 / 80% = $500 worth of options.

Making these adjustments allows me to cap my potential losses at an estimated $500 while participating in the upside.

The post From Scan to Plan: Building a Winning Trade with Vertiv Holdings (VRT) appeared first on Trade of the Day.

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Payment Provider Pops 6% https://mtatradeoftheday.com/paypal-retierates-adjusted-profit-increase-and-its-stock-moves-up-in-premarket-trading/ https://mtatradeoftheday.com/paypal-retierates-adjusted-profit-increase-and-its-stock-moves-up-in-premarket-trading/#respond Tue, 30 Apr 2024 12:13:00 +0000 https://mtatradeoftheday.com/?p=15365 Good Morning Wake-Up Watchlisters! While you’re sipping coffee you’ll see stock futures were flat after a strong start to the week. Markets are pricing in one rate cut in 2024, which is down from the anticipated six or seven expected coming into the new year. Upcoming companies reporting include Amazon and Apple, and plenty of … Continued

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Good Morning Wake-Up Watchlisters! While you’re sipping coffee you’ll see stock futures were flat after a strong start to the week. Markets are pricing in one rate cut in 2024, which is down from the anticipated six or seven expected coming into the new year. Upcoming companies reporting include Amazon and Apple, and plenty of economic news is on the docket.

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The next JOLTS report is set to be released soon and our Head Trading Tactician Bryan Bottarelli is going live today at 2 p.m. to talk more about what it means for the markets.

Click here to join Bryan in real time as part of Catalyst Cash-Outs today. {% endunless %}

Here’s a look at the top-moving stocks this morning.

PayPal Holdings (Nasdaq: PYPL)

PayPal is up 6.21% in premarket after raising its full-year adjusted profit forecast. Consumer spending has shown resilience, and the company expects its 2024 adjusted profit to increase by “mid-to-high single digit percentage”, which is higher than the earlier forecast of it staying flat. Its operating margins also improved 84 basis points as it plans to cut 2,500 jobs this year.

Our Head Trading Tactician Bryan Bottarelli got positioned on PYPL yesterday in The War Room and it’s already humming along in premarket trading.

Click here to see how Bryan’s overnight strategy could double your money while you sleep.

Sensata Technologies (NYSE: ST)

Sensata is up 19.69% in premarket trading after announcing increased earnings of $1.007 billion in revenue. Its earnings per share came in at 89 cents, which was higher than the analyst estimate of 85 cents. The company also announced its CEO, Jeff Cole, will be retiring effective today. The Board of Directors has appointed Martha Sullivan as the new CEO.

3M Company (Nasdaq: MMM)

3M is up 7.56% in premarket trading after quarterly profit jumped 21%. The boost came after price hikes and cost cuts offset the impact from slow sales. The price hikes came over the past two years and the company said last quarter it will continue to lean on price increases to offset inflation and slow demand for its electronics business.

We’re currently positioned on 3M in our Trade of the Day Plus portfolio.

Click here to unlock our entire portfolio.

Chegg, Inc. (NYSE: CHGG)

Chegg is down 13.25% in premarket trading after announcing CEO and President Dan Rosensweig will be stepping down. The student services provider saw subscribers drop 8% and appointed Nathan Schultz as its next chief executive. It lost a total of $1.4 million in the first quarter.

Those are the biggest stock movers for today.

Happy trading!

The Wake-Up Watchlist Research Team

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