Warrior Trading Blog

5 Stocks in 5 Minutes | Arsh’s Trade Analysis


Hey, what’s going on everyone? Welcome back to another episode of 5 Stocks in 5 Minutes. My name is Arsh and today I’ll be covering five of the hottest stocks in the large cap stock market. Some of these include recent trading opportunities that took place while others are stocks that I’m considering for trades in the next few days. I’ll share exactly why I find these to be some of the most interesting stocks worth having on your watch list. Make sure to leave your comments and questions below and I’ll be back to reply later. Let’s begin this week’s video.

We’ll begin today’s video with the DIA which is an ETF that tracks the Dow Jones Industrial Average. We’re seeing this ETF now break out into new 2019 highs and above the triple top level of $266, which has been in place since early 2018. So based on the triple top breakout strategy that I like to trade and share with our students, I think that the major indexes and this ETF are ready for a major move higher. This was the fourth test of $266 and we’ve now broken through that level, which tells me that we can potentially surge up to $300 on this ETF or 30,000 on the Dow Jones Index. So I’ll be actively looking for long trading opportunities to help me take advantage of what I think will be a major uptrend for the markets over the next few months.

Next up is SRPT, which is a stock that made a very predictable breakout last week from this two month long sideways consolidation. This is a screenshot of an alert I shared with students in our chat room where I mentioned to them to consider going long on SRPT above 125. We had seen a pretty major consolidation for two months between 125 and 112, and we had seen a triple top at the 125 level. Right around here, the stock began to curl higher, so that implied that the stock was ready to make that breakout. Looking at the chart, we can see just how well that breakout worked. As soon as it escaped the consolidation, prices squeezed higher and managed to run all the way to the 135 target that I announced in my trailer. This was definitely one of the best technical trading opportunities that took place last week and you can learn more about these types of setups by going through the Warrior Pro course.

Moving on, let’s talk about a commodity, gold, which you can actually trade using the ETF called GLD. Here is a clip from an analysis I did this week for students in our Warrior Pro mentor sessions where I alerted students of a major breakout setting up in gold. The idea here is really to time the breakout by getting long above this trend line. In that mentor session, I shared this major two year long consolidation pattern and I mentioned why I felt gold was ready for a breakout through this trendline. As I expected, the trendline has turned out to be a very effective breakout point for gold, and prices have skyrocketed as we broke through the 1360 level.

Unfortunately, this breakout began taking place once the stock market was already closed. So I couldn’t grab my GLD call options in time, but I’m going to be watching it for a dip buy into the 1375 level. I think that there’s potential for gold to move as high as $1,700 over the next year. So I plan on taking multiple options trades with different explorations on GLD. You can follow me in the large cap chat room to learn more about this trading opportunity.

Next up we have AMD which provided a great short trading opportunity recently. I noticed this bearish consolidation on AMD’s five minute chart, so I sent these trading alerts to students in our large cap chat room where I told them to consider going sure on AMD below this three point trend line. There was no support on the stock until $31 so there was a very nice risk reward opportunity here. Going back to the chart, we can see how effective that breakdown was. The stock broke the level, retested the trend line as resistance, but ultimately gave away and trended all the way down to the $31 price target. This was a very simple yet effective breakdown setup in AMD and it turned out to be a great opportunity for us in the chat room.

To wrap up today’s video, I’m watching Uber for a swing trade long above $45. After a very terrible start to its IPO, the stock has now recovered and consolidated back below the $45 IPO price. Now that we’ve seen three tests of this $45 level, the stock can potentially make a breakout through that level on the next test. I’ll be watching it closely to begin building a long position above $45 and I’ll add to the trade above all time highs. My target for this trade is going to be around $50 but I do think that it has the potential to go much higher once it breaks out above the $45 IPO range. There’s your five stocks for the week traders. Thanks for watching today’s video and I’ll see you in the large cap chat room.

Oh, hey, I didn’t see you there. Why, 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.