Hi everyone, welcome back. Indexes other than QQQ hit all-time highs, with the Dow Jones leading the charge. Most of the interesting price action is happening with QQQ, so we will look at that chart.
QQQ daily chart below:
I bought STNE (2/3rds sized position) on Friday’s close at 71.8. This is the best buy setup I’ve seen in a year.
This time, I drew in some squiggly lines representing 5 scenarios (chart below). I did this because I analyzed my past trades and I have a tendency to sell early if a stock makes a large move in the preferred direction. I get scared I’ll lose those big, quick profits, so I cut the trade early.
I plan to only average up into this position since a daily close below 70 is bearish to me. However, I will average down if we get a candle similar to the most recent one on Friday. The ideal scenarios are the green lines – and I plan to hold the trade for about 1 – 1.5 months. Stop loss at 65, and profit exit at 89.
Some other stocks I plan to go long on are: PTON, PLTR, ORCL, JD, and BABA (longer term swing trade).
PTON daily chart below. I’m used to receiving high premium from selling weekly puts with an at the money strike price. However, I might sell the weekly 105 strike put before price goes to 105.
PLTR daily chart below. I wouldn’t be surprised if this one ran away, but I won’t be chasing it at the current price.
I’m also looking at ORCL, JD, and BABA for swinging long. I’ll post those charts either when I take the trade or sometime next week. I’ve been sleeping really poorly due to stress from a couple events, so I’ll end the blog post here.
I look forward to next week’s stock market action, and I hope you have a nice week!