One of the perks of being a subscriber of The Entry Points premium content is that Trader Scott sends our members comments every morning about market directions, movements and stocks we are watching for set ups. We release these comments in an edited form afterwards from time to time to allow our visitors a little peak into our premarket information.
There are 2 new video lessons here and here. We all need one setup which we can truly believe in and become a true professional at it. Springs to me are the best one. They are the setup which early on allowed me to really turn things around, but only after working and working and working on them. No one helped me, I learned them completely on my own. You’re fortunate. There are endless variations how we can use them. At night while preparing, I go thru charts looking for 3 things with new symbols – first and most importantly, accum, where are the powerful support points in there, hence where springs could be potentially forming, looking for absorption, and during the day observing this also.
Bonds are rallying and you can see the resistance areas I’m looking at for the next opportunity to buy puts, March would be the ones at this point. We’ll see. Bonds are in the the biggest distribution area I’ve ever seen, and the only “bubble”. Bitcoin to me, pure trading-wise, is like the internet build up in the late 90s. The individual cryptos are like the individual stocks, but it’s the technology itself which will survive and change the world. Did you go over that crypto chart from last week, lots of great info in there. There’ll be more later, but what a great market with the volatility, and the emotion and hype. Enjoy it and learn, it’s the late 90’s all over again.
Here is the support area I’m watching in the SPY, for the “secondary rally failure” info. Tops, potential, are a process, not an event.
On Friday I talked about gold trying to “eat thru the supply at 1285”. Two ways to do that, trade sideways (absorption) or “back up from the creek”, talked about this several times, like here. Gold is in a bull market/accum, the backups strengthen in accum and bull markets. There are a ton of reasons given for gold’s lackluster performance, I don’t care about any of that noise. Bitcoin is the latest one. Amazing how the markets create their own reasons. The backups are for buying, just understand the setup and the time-frame.
We talk about the “big curve in accum” – we discussed CNIT back in August –
“CNIT – the long term chart showing the stock having a full round trip with the rocket ship after the IPO, but the stock is now a survivor. It’s now been around for 10 years, but has traded back to its original IPO price once again. The IPO price is usually a support area when stocks do a round trip. Been watching this for awhile an old chart here -the accumulation area – the last time the stock traded at these levels (support), resulted in an explosive move and some huge buying climaxes. The stock has a lot of technical damage long term. We do need to get a feel for the bigger picture, as it can increase the probabilities of a reaction buy even in the short turn, And knowing these price levels can also offer the opportunity to recognize all different types of trade setups, For instance, the stock is now at multi-month highs, appears to be under accumulation.”
Again, just hard work, doing the research, like with EKSO talked about numerous times, and the beautiful area it was in with all of the SOSes. We follow a multitude of stocks, it’s a huge benefit for you to keep watching them also. There is nothing like the work you can do yourselves. I talked about some of my longs/ideas in the spring video, today watching several – NVFY, ACBFF incredibly strong, but give it room, same with NKTR, thank you David, plus OREX, TRXC needs some room.
After market recap of the stocks found in the pre-market comments:
CNIT Opened on a gap up at 1.87 and immediately sold off to 1.60 presenting a fantastic opportunity to step in and buy the bounce which took it a high of 1.80. It closed at 1.69 which was .14 higher than Friday’s close
EKSO Opened at 2.04 with a gap up from Friday’s close of 1.57. It reached a high of day of 2.64 and closed at 2.02. It gained another .03 in after hours trading putting it at 2.05 at 8PM EST.
NVFY Opened at 2.68 with a gap up from Friday’s close of 1.80. It fell a bit and bounced at 2.43 up to 3.10 presenting and incredible trade opportunity among many others. There were many set ups throughout the day for day traders. It closed at 2.15.
NKTR We’ve said it before and we’ll say it again – we LOVE strong stocks. This has followed a beautiful uptrend for a decade. It opened at 42.10 on a gap up from Friday’s close of 32.50. People took profits, but it bounced off support at 36.45 and closed at 37.10.
OREX Opened at 1.82 on a gap up from Friday’s close of 1.66. People quickly took profits and it plunged to 1.58 presenting a great set up. It traded up to the high of the day of 1.86 and closed at 1.76. It’s been active in the after hours trading session and show on the screen at 1.89.
TRXC Opened on a gap up at 3.14 from Friday’s close of 2.87. It reached a high of 3.29 and presented many daytrading opportunities throughout the day. It closed at 3.19.
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