Warrior Trading Blog

5 Stocks in 5 Minutes | Arsh’s Market Analysis

Arsh_5.6

Hey there, traders. My name is Arsh, and I’m back with another segment of 5 Stocks in 5 Minutes, where I’ll be sharing five of the hottest stocks on my radar. These videos are a great way for you to learn the basics of my strategy, but in order to truly master it, I’d recommend signing up for my options course in the Warrior Pro. You can use coupon code Arsh30 for a 30% discount. If you like the charting platform that I’m using, there’s going to be a link to sign up for it in the description. I hope that you enjoy today’s video and make sure to leave a thumbs-up and comment down below. Let’s get started with this week’s episode of 5 Stocks in 5 Minutes.

In this week’s video, we’re going to begin by recapping a trade alert I shared on March 17th in a 5 Stocks in 5 Minutes video on the stock CRON. Here’s a clip of the idea that I shared.

I would expect that CRON is probably headed back down to the next major support of 15.30.

Looking back at CRON’s chart, we can see that the break of that trend line definitely provided a fantastic short trading opportunity. The stock fell for about 25% in the 17 trading days following this break, so this definitely turned out to be a fantastic consolidation breakdown opportunity, which is a trading strategy that I cover in my options trading course in the Warrior Pro.

Next up is SPY, the S&P 500 ETF. This stock recently just hit its all-time high resistance at $294, which has since helped the market to pull back. With how strong and sustained this uptrend has been though, we haven’t seen any major selling come in yet. But I don’t think it’s unreasonable for us to see that selling in the next few days and weeks if the market fails to pushback above the all-time highs. So, while I do feel bearish in the short-term because of the strength of this resistance, I feel bullish for the long-term because of the strength of this uptrend. So, I’ll be keeping a close eye on SPY to help me determine the overall market sentiment and direction, as well as for possible trading opportunities.

Microsoft stock recently provided a fantastic short trading opportunity. After having a significant gap up on its daily chart, the stock began to consolidate sideways, which we can see here in more detail on the hourly chart. With these types of sideways consolidations, you want to plot any trend lines that you can find to help you identify the boundaries of the consolidation. In this case, this one was looking bearish, and we plotted the lower trend line, which actually held as support on two occasions. However, on the fifth test of that trend line, it had a sharp break that led it to the next support level down here at gap fill. So, this was definitely a fantastic short trading opportunity based on this consolidation breakdown setup that took place which had no support down until gap fill.

Next up, we have Amazon. This stock recently provided an amazing swing long opportunity for anyone who was able to recognize this bull flag pattern that had formed on its daily chart. This is the same pattern that I like to look for when day trading, and it works very well from a swing trading perspective as well. Based on the strategy that I teach in my options course, you should have been able to recognize this to be a bullish consolidation that could lead to a sharp breakout higher if we broke out of this consolidation. We can visualize the consolidation using this trend line and this upper resistance level, which can also be used as entry points for the long. As we can see, that definitely turned out to be a great swing long entry, and the stock has since managed to have an impressive run higher.

Now, to determine profit targets, I like to use a range extension. By measuring its past range of $429, we can presume that the stock may extend that range again measuring from this major low of the consolidation. That means that the stock could potentially run up to 2,016.

Finally, we have Boeing, which is something I’m watching closely for a short below 363. This is a stock that I’ve kept on close watch for many weeks after it gapped down on a negative news catalyst. It has since formed a weak consolidation between 363 and 400. Now, one of my favorite strategies is the triple bottom breakdown setup. Probability suggests to me that the fourth test of this level is not likely to continue providing support, and in this case, I think we can see BA have a sharp faith lower if it breaks that support level with momentum. Now, sometimes the fourth test may provide short-term support, so I’ll be watching the price action closely to properly time my short entry. If we begin to break 360, then I would be confident of a move towards $340 in the weeks that follow. With the market being at all-time highs, a few days of selling could provide us the pressure we need to achieve our target on this trade. So, I’ll be keeping a close eye on SPY as well.

With that, I’ll go ahead and wrap up today’s video. Thanks for watching, everyone. I’ll see you in the chat room.

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.