Let's Trade

SPY, QQQ, DOW all finish the week in the green, however for my trades we finished the week in red. Not the best week but not the worst either, sometimes that is the way that it goes. It takes years to become a consistently profitable trader, and even then you can't avoid losing. Pick yourself up, take some time off to unwind and get back after it on Monday.

Bitcoin and crypto market having a nice rally, we could really see some move to the upside over the weekend for bitcoin as it has made a pretty meaningful move above 40k like we talked about a couple weeks ago during its consolidation. It also helps that Ethereum has some nice momentum behind it as well, so if you are a crypto trader it seems like a good time to be in the markets!

SPY/DOW gapping up to start the day and QQQ gapping down, however they are moving against their respective gaps to start the market open. Wait and see which direction it is going to go after the first 30-60 minutes.

Bitcoin and Ethereum still continuing their nice runs and bringing up the rest of the crypto market with them. Great to see this uptrend continue, remember to buy on the way up as that is how you maximize profit on long term investments. Time in the markets beats trying to time the market every time.

JD, V, YELP are some stocks we are watching today. Will jump in if a nice pattern is presented but ONLY if a nice pattern is presented. We are traders NOT gamblers. The difference being that traders look for patterns that put the statistics of making money in their favor, gamblers jump in and hope something goes their way.

Markets all end with great moves up, and the QQQ closes at another record high. Could be a pullback day tomorrow since we are near or above record highs so may be a sit on hands day. Remains to be seen.

Unfortunately TSLA did not move really at all today, finishing only 3.71 higher which is an extremely small move for a $700+ stock. Rode it up to a little more than 1R but ultimately it crept back down to break even and stayed there until the end of the trading day.

This caused some great opportunities on UAA, ETSY, and RCL to be missed because of a lack of buying power. But that is how it goes sometimes, so be mindful when buying expensive stocks and make sure that they have a strong pattern to make deploying your money there worth it.

Bitcoin, Ethereum, and the rest of the crypto market enjoying a strong day basically all day through the trading day, hoping that we do not see a slump overnight as that does tend to happen every now and then. Looking good though the past 1-2 trading weeks have been favorable to crypto so this may be the start of an uptrend. 

Investors love seeing people work as it shows signs of a strong economy, and new reports out that show weekly jobless claims falling as well as layoffs at 21 year lows surely are making investors feel good about themselves and the economy.

PRICE and VOLUME are 2 very important indicators used in trading that help you gauge interest in a stock and whether or not money will keep flowing into (or out of) it. If you know which way money is flowing and by how much you can more reliably take better trades.

Bitcoin slumping just a bit but after a couple days of nice gains (along with Ethereum and rest of crypto market), a slight pullback is not out of the ordinary especially given the volatility of the crypto market. As long as we can hold onto the gains made and not slide too far down below about 37.5k we should be ok.

Spy ends lower, QQQ ends higher, but no real substantial moves to close out a choppy day.

UAA ended up working out for a nice 2R gain, however DDD did not and the position was exited a little early because of how the market was doing, saved myself about .5R there to end the day at 1-1.5R.

Ethereum seems to be making a pretty nice run, however it is up for 10 straight hourly bars so may want to wait for a little bit of a pullback before jumping in to by some. Rest of the crypto market seems to be benefitting as well, as Bitcoin is also having a nice run along with the rest of the large cap alt coins.

After closing yesterday near the previous record highs, markets may pullback a bit but no way of telling for certain. Best to wait a bit and see.

VERY important to have a pre market routine if you are day trading which includes but is not limited to: 

- Scanning for high quality gaps

- Going through trading plan and affirmation

- Taking a breather a few minutes before market opens and when it does open to get your mind right

Having a routine and a plan helps to ensure better success for you, as it helps take your emotion out of trading, which is one of the best ways to make money.

As predicted the markets bounced after a little slide for the first hour or so of the day to close up pretty high in the green. When you see on the charts a pullback to multiple points of pivot support, you can bet that you are going to see a bounce, which is exactly what happened today.

None of our early called stocks really worked out too well except SCCO, however due to constant scanning there was a nice buy setup that presented itself on C that made a nice 2R gain. Always be scanning, there are THOUSANDS of stocks out there that could potentially present you with the patterns you are looking for.

In other news, about 70% of Americans are vaccinated against covid, which should boost investors spirits' a little bit.

Bitcoin still hovering in the bottom range of the consolidation we are seeing after the nice gains made on 7/25. Unfortunately did not see much movement along with the nice green day we had in the markets...

After closing down yesterday right at a point with multiple pivot supports, we are looking for a bounce back to the upside. Should come through for us as investors have a lot of cash on hand as we have discussed earlier, and there is a large buy the dip mentality going around right now...

BTC still slumping a little bit sitting now at $38.4k. If we are right and the market does bounce up, then we should likely see a little move to the upside for bit coin and some of the crypto market as well.

A quick trading tip for you technical analysis minded traders out there, when looking at trends, a move usually consists of 3-5 candles of the same color before it switches to the other color for either a pullback, consolidation, or change of direction. Very rarely do stocks continuously put in trends with 6-8 candles in a row, something to keep in mind so you do not take over extended trades.

Some stocks we are watching today include SCCO, UPST, ETSY, and LMND.

Despite all 3 indexes gapping up to start the day, after about an hour we saw a downtrend that took us all the way into the red to end the day. Pretty modest losses though in the grand scheme of things.

Not a lot of concrete reasoning why we did see this slump, perhaps due to continued China FUD or the recent announcement that they have had drawbacks in their level of manufacturing, which of course the US relies on heavily.

Bitcoin continues a very modest slide now sitting around $39.2k. Not the end of the world though as it is still sitting in a consolidating stage and holding onto the gains made from late July. Ethereum coming out with a software update designed to alter how transactions are processed, some folks saying it could provide a nice price boost. More info here: 

https://www.reuters.com/technology/major-ethereum-upgrade-set-alter-supply-fix-transaction-fees-2021-07-30/

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All 3 markets gap up to start the day, however Q's selling off the jump. We will see if it is a pullback or momentum as the day unfolds.

This week is being labelled infrastructure week, as the final proposals for the $1T infrastructure plan are set to be laid out. However there seems to be $730B of unexplained money out there in the bill so who knows what that will be going to (probably not infrastructure).

Earnings season continues this week with some big names across multiple industries set to report. Most likely a lot of earnings expectations are going to be beat, so if you pair that with a beat in expectations for either product line or user/subscriber base then you likely have a stock that will be making a move up.

BTC has a slight selloff over the weekend, now sitting at $39.7k. Not the worst possible scenario, if we can see more consolidations as we keep moving up as opposed to a pullback after every move then that is a good sign of upwards momentum.

Stocks being watched today are TSLA, LEVI, C, and AEO amongst others...