Markets are on a heater and it’s not slowing anytime soon! Hopefully, it stays this crazy into summer so I can spend lots of time outdoors again like last year after morning action.
We’re running a sale right now for anyone who wants to join us in the chat room. Check it out here.
It’s friggin’ cold out!!
New Hampshire set a new record this weekend -108 on the summit of Mt. Washington! Crazy. Got to about -20 around me and then the wind chill.
Week Recap
To start the week off, I reminded everyone on the broadcast to CHILL OUT if they were not performing how they wanted.
Most times, everyone tries to change their trading up to shadow what someone else is doing, thinking it’s that easy. It’s NOT.
The best thing you can do is FOCUS on YOU.
The worst thing you can do is try to catch yourself up with whatever is working for someone else.
Traders love to chase what’s working for someone else but fail to realize they need to focus on what works for them and their personalities.
This is your reminder to stay in your lane. Focus on YOU.
Yes, absolutely INSANITY market right now. Just cuz your bud is crushing it doesn't mean change what you do & try to aggressively catch up.
It works until it doesn't. They understand how to manage their trades do you?
— Nathan Michaud (@InvestorsLive) February 2, 2023
Extension of discussions we had on Twitter last week:
Knowing a name’s history is often very helpful. Here’s GENE from Friday with the scan game plan and risk of an intraday offering.
All covered $GENE
Never disappoints
Prepared from scan last night – expecting likelihood of a raise intraday. https://t.co/4GW3AbrAWZ pic.twitter.com/k7hQCxoA1a
— Nathan Michaud (@InvestorsLive) February 3, 2023
One thing I preach a lot about is asking yourself: “Where have you seen this before?”
This concept will help remind you to be patient, but also, most importantly, how could it play out? Helps with having a macro imagination of after all of the action happens how does it unfold?
$HSCS see the clear out line from the add add adders 👇
Reminds me of the same warnings we were discussing on $MLGO that day. pic.twitter.com/CHHsH88r3r
— Nathan Michaud (@InvestorsLive) February 3, 2023
CVNA example this week on my trade of the year so far – using your imagination.
Yes, at $18 many probably thought I was crazy when I was thinking we end possibly red, but thinking a few steps ahead allows you to game plan and react rather than be surprised and freeze up.
Back in 2020, although it was my best year, there were a lot of mistakes I made on the front side of moves before ultimately nailing the back side of the trade. What could my year have been without either losing some first or pre-exhausting myself and being able to really scale in and have conviction when it was time? Every lesson is only as good as how you apply it! That’s why I spent the broadcast discussing the unique situation we had on CVNA and reminding myself not to spoil it by trying to get cute front side.
$CVNA round trip or what?
What are your thoughts? https://t.co/33fsiNENQS
— Nathan Michaud (@InvestorsLive) February 2, 2023
Video Topics
- Your Chance
- Best time to join IU
- 945-10AM+ (Proactive/AVOID 15 Min?)
- AI Sector Trade (Sector/Themes Underlying Bid)
- Using Levels To Help (CVNA AI HSCS etc.)
- Trigger Levels ($2.35 Level HSCS = Late Day Squeeze)
- Meme’s Basket (PLTR QS PTON etc.)
- Daily Chart Set up Working (SOUN FOXO etc.)
T-Shirt Winners:
- @guitarnatedawg
- @user-ur5lh6wk9n (SK)
Video Scan and Game Plan
Stocks to Watch
Trying not to overload the scan with watches – as most know I get down to two or three main watches every morning. The process of going through names and seeing them although it may seem like “too much” when they pop back up you’re going to be able to react or make decisions that much faster since the chart is fresh in your mind.
- China basket: TAL GOTU TME NIO DADA
- Meme-ish basket: QS LCID PLTR SPCE RDFN PTON
Main Watches:
BBAI thinking we probably gap down but we’ll see. Even if AI gaps down I have a feeling it sticks around a bit longer and if that’s the case be cautious having conviction on a trade like BBAI. We could see this rally back. This is a ‘theme’ right now and if you remember MARA RIOT on the way up – nothing matters except what the rest of the names are doing. When AI stays red and heavy I’ll be focused here as well. Clean unwind after short blow out Friday back towards $5s. I am ready for a few possibilities – gap up blow out and unwind, weak open r/g and grind = avoid, or weak open r/g stuff which is where I’d look to fade
AI reactive trade – you saw how well those levels worked on Friday so you know they’re going to work once the sentiment shifts. Like CVNA etc – you’ll know when you are right. You won’t have enough. Trade will be fading etc. If you ruin that opportunity by forcing yourself to try to nail the top you’re going to miss the trade. Just relax and wait.
CVNA reactive trade off open and then big picture trade 945-10AM+ thinking it starts to settle down this week. Shorts still heavily present so like Friday focus on the BIG moves and once it stats to consolidate after the first or second time the randomness increases. Be cautious with micro ideas on it.
Failed Follow Through:
HSCS they lowered the warrant price after the bell on Friday so this kept melting from that late day blow out like MLGO. Morning shove and ideally pressure rest of day on this one.
MGAM likely blew out the rest of the shorts – at this point any good pops likely beginning of the end and unwinds.
PTON 945-10AM trend join but ideally pops and stays heavy vs. VWAP
Continuation:
LASE monitoring – steady squeeze out since the daily chart set up (macro liquidity trap type play).
IPDN walk up chart to monitor
APE watching for the blow off day
SOUN held some of this over as planned sold some into the power.
FFIE we talked about that .80 level last time being key support and if it peaked there probably unwinder but it has since soaked and firmed a nice base. Keeping an eye for any fireworks to react to.
BHAT notable wicks
GAME ABCDer on the daily
CAAS walk up continues
IMMX steady since the volume bar
FOXO clean soak since the high volume day (wicks we talk about).
Staying Familiar:
Thanks for what you do.