Trading Prep DEEP DIVE August 1, 2020

[videopress Nbc9FToI]



The market feels like a sports car that’s sitting a stop light and is revving it’s engine… that’s the best way I can think to describe the action.

The indexes are moving sideways across the board and have a bullish bias. Each are consolidating well, forming base patterns (cup w/ handles on the weekly, arguably flat bases and/or volatility contraction patterns on the daily), and the dips are shallow and being bought.

Add to this the number of stocks making new lows…virtually non-existent. It’s remained in the low single digits since the middle of May. Add to that the 23 good looking setups we found this week, 10 making it onto the focus list, great moves in several names post earnings, and its a recipe for higher prices.

I’m bullish and am looking to add next week, somewhere in the neighborhood of 2% capital risk. I’ll likely have my portfolio at 3-4% starting capital at risk.


ACTION LIST: Major Improvements!

Everything is in this spreadsheet. https://docs.google.com/spreadsheets/d/1sMyaJpvmdeFmPJPy-avCDUIoHEeAglD2WpqOCW2akBg/edit?usp=sharing

  • Action List (Trades I have orders on)
  • Focus List (Solid ideas and on deck)
  • Almost there… (made it past round 1 of screening but weren’t tight enough)
  • Earnings ideas (liquid names to play earnings)
  • Day Trade Ideas (stocks w/ lots of momentum & clear blue skies)

NOTES: I’m planning to add 1.5% capital risk to my own portfolio next week. I have orders on $ZM (1%) and $TDOC (0.5%). This will bring me up to 4% capital risk if triggered. That is fairly deep for me. I doubt it will stay at that level for long. My system purposefully has a lot of churn built in to it.

Let me know what you think of the new setup. If you like it, hate it, other changes… I think it’ll make it easier to copy/paste into your own charting platforms and will be a lot easier to keep track of.​


ZM Eval 08-01-2020.pdf

TDOC Eval 08-01-2020.pdf