Warrior Trading Blog

5 Stocks in 5 Minutes | Arsh’s Market Analysis


What’s up traders? It’s Arsh and I’m back with another edition of Five Stocks in Five Minutes. I’ll be sharing five of the top stocks on my watch list, including some that have provided great trading opportunities recently as well as a few that I’m watching for trades in the future. These videos are a great way for you to understand the basics of my trading strategies, but I’d recommend signing up for our Warrior Pro Curriculum, so that you can take my Options course and learn the details of how I trade the markets. You can use coupon code ARSH30 for a 30% discount. If you like the charting platform I’m using, there’s going to be a link to sign up for it in the description. Make sure to leave your comments and questions below, and I’ll be back to answer them later. I hope you enjoy today’s video.

Let’s begin by analyzing SPY, which is the S&P 500 ETF. We discussed last week that SPY encountered major resistance at the previous all-time high of $294. That was enough reason to develop a bearish short-term stance on the markets. That has definitely paid off for the bears this week. We can see that the markets have been downhill since the gap down that took place on Tuesday. Now, this could be largely attributed to the trade war headlines that we’ve been hearing this week. Considering how bearish that news was, I’m surprised that we haven’t sold off more.

That gives me the insight that this bull run is not done, and that we may likely retest the all-time highs again very soon. The bearish news being largely shrugged off is a sign of the underlying strength in the markets. With the type of market environment that we’re in right now, everything is very influenced by the direction of indices like the S&P 500. It’s very important to analyze the markets and determine a bias. That’s why I keep a very close eye on the SPY on a daily basis.

Next, let’s follow up on the BA Short idea that I talked about in last week’s Five Stocks in Five Minutes video. Here’s a clip of that trade alert. If we begin to break 360, then I would be confident of a move towards $340 in the weeks that follow. We were expecting BA to have a technical breakdown below $363. Looking back at the chart, we can see that has worked out very well. Now, one of the put options worth considering here was the May 10th 355 put, which went from a value of about $2.20 when the breakdown began up to a peak value of $8.50, marking about a 300% return on this option.

This triple bottom breakdown strategy is definitely one of my favorites in the market, because of the edge that it provides us as traders. If you want to learn the details of this strategy, make sure to sign up for the Warrior Pro course. That’s going to give you access to my Options course, my weekly mentor sessions and the chatroom where I share these trade alerts live.

BYND has been a very hot stock since its IPO last week. From its opening price of $46, the stock eventually ran as high as $85 and claimed the title of the best IPO to take place since the dotcom bubble. That’s quite an impressive achievement considering they’re a packaged foods company and not a hot tech unicorn like Uber. While it did provide some great long opportunities since its IPO, the most recent opportunity was a short based on this triple bottom setup that had formed on its five minute chart. This was the same setup that formed on BA, but on an intraday timeframe rather than the daily timeframe.

We can see that after balancing off 6710 here, the stock found support off of that level two more times, which helped to form the triple bottom setup here. I alerted students in this week’s mentor session to consider it for a short below 6710 using my triple bottom breakdown strategy. Once it broke that level, we can see that it managed to fade all the way down to the next major support level of 6250, which provided for an impressive trade.

While we’re still on the subject of triple bottoms, here’s one that I saw forming on the hourly chart for the stock [SHOP 00:04:12]. This is actually a four X bottom now after considering today’s balance. The stock has had a major run higher in the recent few days. We’re now seeing it form a base between $255 and 266. If the overall market continues to sell off, I think there’s a good chance that this $255 level is going to fail to continue holding. That can provide us a great short opportunity for the stock.

The next major level of support doesn’t seem to be down until 245, so I’ll watch it for a short below 255 with a target down there at 245. This will be a breakdown or bailout type of trade where I’m only going to hold it if we begin to break down and stay below 255. It would begin as a day trade, and then potentially turn into a two to three day swing trade. It’s very important to be in alignment with the overall market, so I will only consider this trade if we see further selling in the markets.

Finally, we have Uber. It’s been a long time coming, but it’s officially a publicly listed company. Shares have been surging from the opening price of $42, but still below the IPO price of $45. Its competitor Lyft, which recently IPO’d, has provided some great trading opportunity and I’m sure Uber will do the same. I’m going to be watching it very closely these next few weeks.

It’s too early for me to tell what the stock may want to do, but it’s currently looking pretty bullish. I expect that it’s likely going to keep going higher. Lyft has already had a major sell off since its IPO, and that has had a significant impact on Uber’s IPO price. I do think that much of the bearishness has already been priced into this IPO thanks to Lyft, which could provide Uber the strength that it needs to move higher from here.

With that, I’m going to go ahead and wrap up today’s segment of Five Stocks in Five Minutes. I hope that you enjoyed the video, and I’ll see you in the Large Cap chatroom.

Oh hey, I didn’t see you there. 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 any time I go live or upload new videos. Until then, happy surfing.