What’s up, everybody? Well, it’s the start of a new week, a new quarter, and that is really great news, ’cause I can probably imagine that most of you are as happy as I am to put that last quarter behind you.
The trade has definitely been a little bit tougher than we normally see this time of year, but the good news is that we’re moving into the end of the year now, and that’s where we see the most momentum and action take place during the market cycles throughout the year. So, that’s really great news.
And today, a really great way to start the week and the quarter with one single trade on GE for just under 700 bucks.
So, let’s take a few minutes, talk about that one trade on GE, as well as a couple other stocks that are poised to break out on some momentum.
All right, guys. So, let’s do a recap here of this morning’s trades on GE.
Now, actually some decent momentum here to start the week off, and to start the quarter off as well here, as we’re starting October 1st. But some interesting action taking place across the market as well. Big move up in the SPY this morning, but there were some stocks with some momentum. We’ll cover those here shortly.
But, first, we’re gonna cover trade of this morning, which was GE and the gap fade. So you can see one quick hit here for 665 bucks. I turned quite a bit of shares on this thing, it probably should have been a little bit bigger of a win. But after the type of trading we’ve been seeing lately, I’m happy to take home just over 650 bucks.
So, good way to start the week here, and let’s talk a little bit about how this trade played out.
So, we were looking at GE this morning … Over all the chart’s really broken. Right? Just on a huge downtrend, been nothing but fading since we broke this macro trendline here. There’s just been really not any sort of momentum play on it until there was some news out today. And we were watching it closely to see if we could get back above this hundred day moving average, because if it could get back above that then you’re reclaiming two moving averages at once, and that could provide it some momentum to push higher, potentially back up to the 200 day.
But what happened on the open was that it stalled there at the pre-market high, and we’re pretty religious about these, letting the stock clear through those, whether it’s highs or lows. But, in this case, it couldn’t clear the pre-market high, and you had that 100 day moving average above it.
So, what I liked on this is right at the open the amount of selling we were able to get right away. Massive volume coming in on this in the first couple minutes of the day, and we just completely were failing that breakout. Double topped with the pre-market high, getting below VWAP’s, so I started to see that happen. I started to see the close before VWAP, and I said, ‘All right. I think this is the spot we can give a shot on this and see if we can get it to fade for 50 cents or so, and that would be a big move for GE.’
So, if we dial into a faster time frame here you’ll be able to see exactly what I was looking at as we entered the trade. So, here was the breakdown and the rejection. First we had the rejection come in to the open. Here’s the break before VWAP. Here’s where we started to close below VWAP. And as I saw this starting to come back through this big pivot here, I was going to anticipate that we were able to get this breakdown since we had such incredible volume here pushing this thing lower.
So, I got short 1280, and as soon as I got short we started to flush. I added a bunch, and I took some off through 1260, and I then was just holding it because we had this big pivot that we were sitting against. And as long as we remained below that, I was okay with being short.
Now, the reason we had this pivot here was from the daily. You can see where it comes into play roughly around this 1275 level. You can see it’s not exact, it’s not the cleanest pivot, but it there has been some decent reactions to it over the past several months starting with this short term bottom here. Test it again, and try to hold, test it again, and try to hold, we broke down through it, retest, retest, fail again. So, even though we had some resistance in this zone, it is definitely a spot that I wanted to be to play against. So, that’s what I was sitting in the trade for as long as we remain below that level, I was okay with being short.
The SPY started to look a little bit weak as we got a little bit further into the morning here, and that’s definitely what helped this trade ultimately break down, and we were able to get what we wanted on it. So, as it started to break back down here, it kind of held the bottom, which I didn’t like too much. Usually when I see these things roll over I need to see them break down through the lows to remain in them. But, again, since we had such a heavy pivot overhead, we had the VWAP overhead, such heavy selling, I just remained in the trade as long as I was break even or better, and just sat with it to see if we could get it to break down, and we did. We were able to break down.
And the target was through 1250, and then the final out was through 1240, and what happened was we broke through that here coming into the lunch hour, and we were out of the trade.
So, really good trade. I turned a bunch of shares on this, ’cause I was pretty heavy trading this thing. And I gave back some on some of these POP’s I had to get out of. And I got back in, and I was just turning shares.
So, again, it probably could have been a little bit bigger of a win if I just got in and sat with my size. But just, again, the way that trading has been you got to really play defense, and if it’s not going your way you can get out.
And that today, yes, I’m going to pay a little bit for it. I didn’t book as much profit as I probably could have if I just sat with it like I normally do, but I’m happy playing defense pulling in almost 700 bucks on a Monday morning to start the week. I’m fine with that.
So, great trade on GE.
A few others I want to touch on here. BA. BA was a swing trade for … the swing trade candidate for today, and this thing really took off, and it’s continuing to rip here now.
Really phenomenal set up here on the daily if you look. We have, basically, a triple top. Basically, a triple top coming in through here. And we were talking about this morning that if it got above this level, and we could start to push this is something we definitely want to keep an eye on, because this is just a big massive wedge that’s breaking out, and it can go. This stock can really run.
So, what happened here out of the open is we gapped above. We started to hold on that opening range, and we pushed, and from there on we’ve got a big move. And there is a lot of traders that were able to jump on this in our room and take advantage of that move. We always welcome when a swing trade turns into a day trade.
So, a really nice trade here. And this thing has plenty of potential to continue to move just because it’s a momentum name, and really great daily charts set up. If the market remains strong, this thing can definitely continue to go.
So, nice move there on BA.
NVIDIA is the follow through name from last week. This thing has just been on a tear after the breakout of that wedge that we talked about. Let’s look at it on a different chart here. I should have the levels drawn.
So, NVIDIA really breaking out of this wedge that we had drawn last week right in through here. Nice base that we had put in, and we were breaking out of that. We were talking about it on this day right here that it was gapping back above this wedge break, and we had the volume come in. Just such a beautiful confirmed breakout here, and it’s continuing to run, and it’s got plenty of room to continue to go. And I wouldn’t be surprised to see 300 on this thing in the next few days if the market remains strong as well.
So, NVIDIA playing out well.
Apple was also, from last week, our swing trade that it broke this … Basically the same pattern here, breaking up out of this wedge, continuing to move. Action today isn’t the greatest, but as long as it can maintain back above yesterday, or Friday’s, levels, and it could be just some consolidation, and looking for some continuation here in the coming days.
But definitely some good trades out there guys. Some decent momentum to be had. You just got to really look hard, but it’s definitely there.
So, great way to start the week today. 665 bucks on GE with one trade, and we’ll sit here through the afternoon to see if anything else plays out, keep an eye out on the swing trades, and look to do it again first thing tomorrow 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 e-mail alerts anytime I go live or upload new videos. Until then, happy surfing.