Good evening: I wanted to add a little bit of flavor for the people who are traders… As you know, I host a morning show at TheoTrade each morning at 8:45 am. The link is right here… So… let me tell you right now - up front - the five stocks that I’m trading this week - why… and how. I am focused on momentum… This isn’t about insider buying… With our signal positive, I’m going to take direct aim at these five stocks using a pretty simple strategy… I’m turning to the 15-minute chart of each stock. I’m mapping the ADJUSTED 8-day exponential moving average (EMA) and the ADJUSTED 20-day moving average. And when 8-day moving average moves under the 20… and the equity price breaks above the 20-day EMA… I’m either buying the stock or buying the at-the-money call that expires on Friday. If the stock breaks back under the adjusted 20-EMA, I walk away… I take a small loss… But if it breaks higher… I’m staying in the position… Here’s Micron Technology (MU) this week…
The $197.50 call on Wednesdays at 2:30 - when the stock pushed above its 20-day was about $7.90. It finished the week at $23.20. Now, again, I can use the stock or a leveraged version of the stock. Oh… and I can also short the stock when the 8-day EMA falls under the 20-day too… Anyway… this is my watchlist of breakout and breakdown stocks, based on this chart. And if you’re a day trader, bring it down to the 3-minute chart for faster moves. My list this week—consisting of high-volume stocks with tight Bid-Ask spreads—includes stocks that are within earshot of all-time highs… That’s important because they can break down fast… and rebound faster - just like Micron this week. Here’s your list…... Keep reading with a 7-day free trialSubscribe to Me and the Money Printer to keep reading this post and get 7 days of free access to the full post archives. A subscription gets you:
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