Warrior Trading Blog

+$4k on $DIS! | Mike’s Trade Recap


Hey, what’s up guys? Really nice day of trading here in the middle of the week with a big win on Disney for just over 4000 bucks as we traded the earnings play on this to the downside. We had the market in our alignment and a lot of volume. So that’s one thing I’m always very adamant on is, follow the volume because it makes the moves much more predictable. So it’s great news for me because I’m about to pack up and head out on a 10-day trip and I’ll be back towards the end of August and we’ll look to finish out the summer months strong. So stick with me first here while I break down today’s trade in Disney.

All right, good morning guys. And we have a good day here finally after a couple of slow days of action, actually no trades for me. We took a trade on Disney this morning, actually a couple trades into the momentum to the short side here and was able to lock up just over 4000. So definitely a really good way to clean up the lack of action. One solid trade here brings us back nicely into the green. So again, just following the volume, following the technicals, waiting for that market alignment and the trades will present themselves. And today we were able to get that on Disney for just over 4200 bucks. So let’s take a few minutes, break this down, talk about the technicals that we had on it and the trades that we actually took.

Now at first look at this. This really doesn’t look that clean and it really wasn’t. We add to maneuver in and out of this thing several times in order for this thing to be able to give us some sort of opportunity for a profit. But, as far as the technicals go, some interesting lines on this, some interesting levels. And the one that I liked the most was this ascending support line. Whenever you have a support line, a trend line that starts with the shock value of a gap and it has high volume, as you can see down here, and it starts here at the gap and it lines up, those are very powerful levels. It broke that trend which was telling us initially right there that it’s definitely going to be weak. Next thing below we have the the hundred day and then we have this major pivot in through 130. I was really looking for it to get below the hundred day and sell to 130 and potentially beyond down to the gap entry, but we didn’t really get the continuation there.

We got the test of the hundred, started to sell through it and that’s where we were able to get some profits but it definitely by no means was an easy clean trade. We definitely had to maneuver in and out a few times to produce those wins. So good solid technicals on it, no doubt about that. We knew Disney was going to bring the volume high profile name and the market was in alignment here coming into the open. So when you have that sort of criteria met that you have the market in alignment, you have good technicals, you know the stock that you’re trading is going to have some volume, typically they’re going to be very predictable. So that’s why I ended up sticking with Disney this morning.

So what we had here was earnings on this and then we started to fade and this is the trendline that we broke down and we were starting to come into the zone here where we had the hundred day and then below that we had this pivot. I was really looking for a crack below the hundred day to fill this pocket and get a couple points and be done for the day.

Now what I ended up doing is anticipating the break because of price action or preceding price action into the level. Definitely a little bit more advanced, but you can do it when you have all the criteria met. And what that criteria is, is this, so we’re looking at the fast time frame. Here’s your initial move out of the open. If you look at this in real time, here’s your initial move out of the open. Got to wait for the retest, never can short or trade into a level on the first test because that is very, very risky. All right, so as we’re moving right along, there’s the test of the hundred day. Here’s the pop, but we failed. So the back test and it failed.

When that happens, you can anticipate the breakdown. So this is where I got short as we are breaking down 133, 50s and 60s and again, I covered in through the break and then more as we sold here a little bit and then we cracked below the hundred day. And then as I saw this action taking place right here, we were sitting up against the hundred day, retesting. This is normally when you see the continuation take place, right? So if you’re retesting and you’re failing, once this happens, this is typically where you’ll see the continuation to potentially fill that pocket. So I added back here once I saw this thing rejecting the hundred day right here as we were breaking back down through 133 and then I covered some as we were breaking down through lows 13260s, 13250s, and again I added back one more time here cause we retested it, we failed, we were making success of lower highs, right?

So that was something that was important and we were retesting and failing. I added back again, again as it came back down, I covered 13240s and 50s and then I stopped out as we made this move back through the hundred day. So you have to understand that this was definitely quick trading. But since you had your criteria in alignments, this is what allowed the trade to work. One other thing I really want to make a point of here is that when you are anticipating, you need the market in alignment, okay? Notice what the spy was doing out of the open. We were selling, we were weak, we were fading off pre-market levels, all right? We were coming down pretty hard. Fade, retest, fail, hard, fade to lows, right? In order to anticipate you have to have the market in your favor.

All right, it’s really important. So along with the market in your favor, again, you also need a failed retest to take place, which happened here, all right? Which happened right here as we started to come back up, failed retest and we broke. I anticipated the breakdown and we were able to get it again because we had the market in our alignment. That’s super important. You don’t want to anticipate unless you have all that because it just presents a very risky trade. So as you can see today, it was definitely … I had to work for this. I had to work for this profit. It wasn’t just a hard and fast fade through the pocket. We definitely had to be quick on it, be in and out as we saw that price action taking place. But definitely it’s still presented multiple entry opportunities by utilizing the pivots that I talk about throughout all of the videos.

So again, utilizing those fast timeframe pivots, those success of lower highs or higher lows. Those are just telltale signs of the strength or weakness of a stock. You learn to read the price action, you learn to read the volume of a stock, you’ll be ahead of virtually any other indicator out there because that’s what they’re all based on, all right? So learn to decipher that on your own and you’ll be much better off in your trading signal.

So that was Disney today guys. It’s a good trade for me because I will be out for the next week, starting tomorrow, so I’ll be out on a trip and I will be back on August 18th. So a good way to go into that and we’ll get back at it once I return. Let some of this slow trading in August pass us by and we’ll get back to it near the end of August. So anyway guys, everyone have a great rest of your day and I’ll see you back in about 10 days.

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