Blockchain, Doobies and Springs – Cutting Back Time-Frame and Position Sizing – MARA, MGTI, OWCP, others Video

November 27, 2017-7:31 pm traderscott What We're Trading 4

The Entry Points

Even when I get concerned about the next higher time-frame technical situation, I’m still willing to trade a shorter-term time-frame. Today my concern was blockchain stocks. And today the only daytrade for me was a 10% trade in MARA, 7.30-8.10, the specifics are discussed in the video. But guess what, yes it was a spring. Springs, retests of springs and absorption are the only trades that I do (long-side). Blockchain stocks have been killing it, but they were getting quite overdone. I was concerned about RIOT, SQ, and UBIA, and eventually MARA itself. Pot stocks, OWCP, CANN, are one of our favorites, and they have been setting up beautifully, and we talked about them Friday and again today. MGTI and EKSO beautiful springs. Finally, DPW and SSC were big winners in premarket trading, but I believed they were bearish and there would be an upthrust in them today. People were going wild for these two early today, but they got clobbered from the morning highs – an upthrust from today’s AM highs. They were both down about 50% from their highs. From today’s premarket:

“Bitcoin itself is a wonderful market, and specifically the blockchain is as awesome as the internet in 1990. But the claims all over the internet about BTC harming gold are truly amateurish…..And any related stocks with blockchain/crypto are in a bit of a mania right now, so keep that in mind, but – RIOT, SQ, UBIA.”

“Did you see the recent post about the spring in MGTI (and XNET)- what a beautiful spring.”  “DPW and SSC look like they could upthrust today“.

From the 11/24 premarket: “Watching pot stocks for reactions, one of our favorite groups – OWCP, CANN, GWPH, CARA, ACBFF.”

And my comments to my partner earlier:

 

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About traderscott 1146 Articles
Trader Scott has been involved with markets for over twenty years. Initially he was an individual floor trader and member of the Midwest Stock Exchange, which then led to a much better opportunity at the Chicago Board Options Exchange. By his early 30’s, he had become very successful in markets, but a health situation caused him to back away from the grind of being a full time floor trader. During this time away from markets, Scott was completely focused on educating himself about true overall health and natural healing which remains a passion to this day. Scott returned to markets over fifteen years ago where he continues as an independent trader.

4 Comments

    • Yes, just a matter of that setup. And your time-frame. While the overall bull is going, look at all these strong stocks go. There are the folks who only buy strong stocks and into strength. Perfectly good approach in the overall bull, they are doing great. But I got to see that reaction setup. I do really like your strong stocks, and always go for buying the relative strength stocks, or the emerging ones (anticipating the relative strength to come – accum/absorption/coming out of springs). It appears to be into your resistance area? But overall, that humongous SOS in October.

      Reply

    • I’ll did into that from FSB. And as far as the strong stocks, getting the nice reaction setup is what “comforts” me. But I do believe in allowing the strong stocks some room. At the same time, if you have the position on, selling into strength is a winning approach, it’s just the fine line between giving them plenty of room vs selling into strength. And is their something, like the upthrust in SQ last Wednesday or EKSO, where the probability of the continuation drops a lot.

      Reply

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