Warrior Trading Blog

+$3k for Friday! | Mike’s Trade Recap

friday

Hey, what’s up, guys? Well, it’s Friday here, and it’s my last day trading live in our New England office, and a really great way to end the week, up $3000 bucks closing down our swing trade on IBM.

 

A really great lesson here on long term macro based trades. We’re going to cover a little bit about that in the recap, but today, no day trades for me, just a simple exit of my put position that we initiated a few days ago on IBM for just over 3K. Closing up the week strong, going to look to end the month of October on a really strong note Monday and Tuesday, and then we’ll move into November. Everyone, have a great weekend, and we’ll see you back first thing Monday morning.

All right. Good morning, guys. Well, a really nice way to wrap up the week here, trading live from our New England office, visiting Ross up here, and it’s been kind of a tough week of trading, but today we’re able to wrap it up really nicely with a $3000 win on our IBM swing trade that we took. We took an IBM swing trade after this long term macro trend had broken down. You can see over here, on the top left. This is a daily chart of the IBM, and you can see this very well-established, long term, ace ending support trend line. When that broke just a few days ago, over here, and confirmed and held below, we initiated a short position, via puts. We took some further outputs, because we did see this thing having the ability to really sell off, really down here, towards that first, or most recent pivot low, which falls roughly around 117, 118, and the target before that was going to be in through 125ish, 126, which it already has it. It’s moved through, and I still have that target on it down near 117, or 118.

We took most of the position off today for just over 120%, and we were able to rack up just over $3000 bucks on that part of the trade, so really good work, just for a simple couple day hold on this. Everything really came together nicely, including the market, and this macro based set up. When you have these long term macro based set ups, you really have to pay attention, because these are the ones that set up to provide the home run types of trades, and when they do set up like that, we can become aggressive, because they’re high probability. When you have the market in alignment, it makes everything that much better. We had everything come together on this trade, and we got aggressive, and we’re able to take a really nice profit out of it just for a few days worth of holds.

That was IBM. The other two trades we have on watch today were Apple, and WDC. Now, I didn’t trade these as day trades, because I was kind of focused on IBM, trying to get out of that on the initial market sell off this morning. But let’s talk a little bit about those.

Apple, we had a nice ace ending support trend line here, off the daily. You can see it held that several times, testing that throughout the morning of trading, but you can see the pops were being sold. The spy started to look real weak, and the QQQs, over here, you can see, started to be real weak, and it couldn’t get back over ViewApp at that point, and that’s when I’d like Apple to bust down through this trend line. We wanted to wait for a five minute close below, that’s the confirmation, which you see you got right here around 10:40 AM. You got that five minute close. Right at 2:15, it started to take out that base, in addition to that trend line, and then it just opened up for quick two points, so really high probability trade here. It broke that daily ace ending support, and then it sold off for a quick two points, a really nice momentum trade there, again, off of a longer term macro based set up. These are really important, because they provide the highest probability trades.

All right, so that was Apple. The next one that, unfortunately, I didn’t get the retests I wanted on this, but it did work out very nicely, and that’s WDC. This was on our watch list as well. We had Apple and WDC on the watch list this morning. Had a really nice pivot on the daily here at 47, 55. You can see what happened right out of the open, it went right to it, tested it, and failed, literally to the penny. Sold back below ViewApp, and I liked it when it started to get back below ViewApp here.

I really wanted to see it take out the pre-market base first, because that was going to be most important, and it took that out, and I wanted to see if we could get a retest back against that level, that 45, 50 level, and unfortunately we just didn’t get it. It came close. It definitely came close, but it didn’t come close enough for me to get my fill on it. I had orders out at 45, 50, and 45, 60, trying to see if I could get filled up there, and unfortunately it just didn’t come back to that point, and it ended up moving. But great example here of a home run type of set up, because you have a big pocket. Forty-seven, fifty-five, all the way down to forty-three, you’re talking about four points of room on a $40 stock. That’s roughly 10%, and that’s a huge move. You made a nice, smooth, clean move through this pocket of no support, and that’s what allows that to happen, because there is no support. That’s the types of set ups that we want to look for.

In any event, that was WDC, a really nice trade there. I know a lot of members in the room were able to catch it, and get on that move, and that was a big profit trade for a lot of us. In any event, guys, wrapping up the week here, just after 11 AM, and going to go out and enjoy this nice fall weather here in New England.

Everyone have a great weekend, and we’ll see everyone back here first thing Monday morning.

Oh, hey. I didn’t see you there. Well, I was just working on the dream board for my next home run trade. Hopefully, it comes soon. Until then, make sure you subscribe to get email alerts anytime I go live, or upload new videos. Until then, happy surfing!