Arete Tuesday Newsletter
Time to bottom Fish 🎣
As the saying goes:
“At the end of the day, your job is to buy what goes up and to sell what goes down.”
-Paul Tudor Jones
That’s great but what do you do when the market has no clear pattern. If you shorted today you most likely lost money. If you bought yesterday, you most likely lost money. There was no clear direction. That has changed after today. We have a direction and it’s down. That is not the worst thing. The worst is directionless. When we have a clear correction one very important thing happened. People sell and they sell faster. Much better than what we have been dealing with for the past 6 weeks. Also, this allows us to watch stocks get stress tested and see how they hold up. This gives us a huge opportunity to buy great stocks cheaper and with less risk. Less risk? yes now that we have an idea of the short-term direction inside our bull market. We can use this to our advantage by finding great stocks at key inflection points in their longer-term charts. I went through several hundred charts tonight three leaders stand out. I listed them below. Please note what they MUST do in order to execute as a buy idea. Also, realize that in the washout and correction environment while we will be wrong less now. We MUST honor our stops and have a process. The reason is simple. When we are wrong and we will be. No one hits every time you step up to the plate. The sell-off will be vicious. The hard penny environment is coming to an end. Get ready for volatility!
The $QQQ went directly to the 50-day moving average and bounced right off of it. We also hit a small trend line on the falling wedge. The reason we are not buying the index 3x ETF is it possible it will now greatly underperform bounces in high beta names. See below in our stocks section. The $IWM looks ripe to fall into the $218.18 level and wash out the remaining holders of small caps. A nice flush could set us up for a purchase of the $TNA 3x ETF. Finally, the $SPY sold through the 21 day only to close back over it. The $SPY is muted but acts the best. Let’s do this!
Let’s look at our Indexes!
Let’s Look at our Stocks! ( 3 New Buys)
Subscribe to YouTube! 👈Subscribe and turn on notifications. Below is a video of today’s rally off the lows and a review of over thirty stocks as well as the indexes. Tons of actionable ideas. Also, I walk through the three buying points of $PLBY today. Consider making these videos part of your routine. I go over the lessons from the trading of the pro series during them and point them out in real-time situations.
As always all investment decisions need to be made by the individual. We all have different risk profiles.No two people trade the same. Understand the buy points, stop losses, trims are suggestions. For example on stops. I want to see it close there at the end of the day.
You need to develop your own process. I am willing to help and offer feedback.
Please make sure you Subscribe to Twitter! 👈and turn on notifications. There are times my updates are timely in regard to the Newsletter as well as other ideas. I called levels on $PLBY $MUDS and $TSLA today.
Any questions please message me.
Thank you again for all the messages telling me how this Newsletter improved your performance and made you a better trader!
Wishing everyone Massive success!
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