End of Day Wrap Up 03/16/2021
Happy Tuesday everyone. Today was a pretty red day as I expected. Like I mentioned yesterday, Tuesdays tend to be red, especially after a green Monday. I usually go shopping to set up my positions for the week on those red days. I still think the market is quite choppy, so I’m sticking to my strict rules. Until there’s a clear indication that we’re back in bull’s territory, I’m going to keep playing it safe with my trades by keeping my positions small and locking in small gains, which is usually only ~8-15%, and repositioning at big dips.
There’s much anticipation over the $1400 COVID-19 relief payment hitting bank accounts this week, so once this happens, I’ll be expecting huge gap ups in the coming weeks.
GameStop Corp (GME)
GME closed -5.44% at $208.17, hitting a high of day of $220.70. SSR was triggered today at $198.13, and continued downward to a low of day of $172.35, closing at $201 after hours. Today’s volume was still pretty low with 35.4M, but the fact that we came back from a drop of -21.71% is absolutely insane. I’ve been monitoring the price action extremely closely over the last 2 1/2 months, and I know something fishy is going on behind the scene. The pattern has become quite predictable. The goal over the next 5 trading days will be to trigger SSR every day. This may mean we will be allowing drops of -10% to -20% to trigger SSR every single day, but the goal is to buy the big dips and close higher each day, until 03/19-03/23. This is the setup we will need to execute to the T for us to get a great run.
GameStop will be announcing their Q4 2020 earnings on 03/23/2021 after the market closes. I said this yesterday, but I’ll repeat it again. There’s a good reason why GME is being suppressed, and it makes me want to hold it more based on the fact that they need to short it constantly to keep the price down. This is absolute insanity, because the psychology behind the charts patterns are reflective of two stubborn groups: Hedge Funds vs Retail Traders/Investors. I’ve been continuously taking my profits from my other trades, and buying more shares of GME every single day. I’m bullish, even if others don’t see it. The fact that dips get bought up as quickly as they do shows the power behind this stock. Others may just see a chart, but I know there’s much more to it, so I will stick with my gut on this one. As long as we’re holding above $200, and the monthly charts show higher lows forming over time, I’m holding. I don’t care if it looks messy, as long as we reach our destination. I’ll be happy with +1-3% gains daily over huge rips that don’t hold any day.
What I’ll be watching Wednesday, 03/17/2021
I expect a greener day tomorrow, although it may be a bit slow across the board especially with many of the larger traders and their followings going all cash. I do expect it to be quite choppy still until we see stimulus checks hitting bank accounts. Once that happens, I expect a nice bull run in the coming weeks. Until then, I’m still going to trade small just to be safe. As always, stick to your plan, and I don’t recommend trading if you find yourself becoming emotional. That’s a recipe for disaster. The worst thing anyone can do is revenge trade to try to “get back” their money. Stay positive, and be forward thinking with all your plays. Stick to a solid strategy and do not stray if you want to realize profits.
How to Utilize My Positions List Below
Many ask how to utilize my top 5 green/red position lists below. Oftentimes, I will exit my green swing positions if it looks like there will be no continuation. My decision varies depending on what my cost price is. It’s all about managing risks, and if it looks like I’ll be in a position where, I’ll be down, I won’t hold, and will choose to reposition myself by accumulating dips on red days over a period of time until it’s ready for the next run.
To Buy On Green Days or Not
I will add to my green positions on green days only if it’s moving in the direction I like and forming higher lows, and showing a bullish chart. I make sure to scale when adding, especially on green days, because it can go south quickly.
To Buy on Red Days or Not
I will almost always accumulate my red positions because they usually move back up, unless it’s a clear pump and dump, which I will never swing because it’s too risky. If there are sharp spikes and a quick drop down, then it’s a clear pump and dump. If the chart slowly drops in price throughout the day, then that’s usually people taking profits. To make the call on re-entering or accumulating, I look at the 5D, 10D, 30D, 90D, 180D charts and I monitor the volume. I love adding when there’s little to no volume when setting up long swings.
Top 5 Green Positions (03/16/21):
Top 5 Red Positions (03/16/21):
I monitor Market Movers every single day to scan for new setups. I mainly look for positions with unusual volume that are at the bottom, ready for a reversal back up, or if they remain green, I look for a bullish chart for a continuation.
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