Warrior Trading Blog

Smashing $WFC for $500 and Counting! | Hulkman’s Trade Recap

How’s it going traders? I wanted to go over today’s trade recap. I want to talk about what I saw this morning on the watch list. Starting off in the morning, we had this Disney, DIS, on news. They launched their streaming service, which was in competition with Netflix.

Almost overnight, we saw, pre market we saw a pretty good gap up. I was looking at this initially for it to pull back a bit and hold the Fibonacci levels and I was looking for this one to take it long. But that didn’t happen. I had it up, like, like you see here. So, I was looking for this to dip. But we started to get really extended in the pre market. And now we’re looking for the dip right down here to this 382 level. At the time, I think it was, if I remember right, it was just like so.

So right in this range area, I was looking for it. Which would have lined up with the 20MA. If not then I was just gonna wait. And wait for another pattern to set up. But, we didn’t end up getting it. Kind of just spiked out of the open. I don’t know, it was just a little bit too risky for me. So, waited and waited. I was looking for another breakdown. Started to see the bid come in around here. Started to get bid lower. So I wanted to see the breakdown to the buyers price where he wanted it. And then maybe I was going to take it. But, it just wasn’t something for me. After a bit I started to feel like I was reaching.

And its been, again, markets been tough a few weeks. I know I’ve said that before but, past couple of weeks have been really, really tough. And really, really been playing defense. Either trading a lot less, a lot less exposure or I have been taking very small red days. Some $11 red days. I actually have a calendar here. So, month of … 2 red days in the month of March. And then, this month, I mean … look at the red there. 4 red days. Given they’re all small. I got a $74, $11, $118. But, been trying to take a stab at something that looks like it’s going to work. But if it doesn’t work, then I just call it a day. Really, really been playing defense lately. So, stopped watching Disney. Decided not to trade that one.

The other one we had on the watch list this morning was JPM. JP Morgan had outstanding earnings. They beat on the bottom line and top line, so it’s pretty good. Here I had a level on JPM, right here. So I was looking initially for this to pre market come down dip and hope. And I was watching Disney during this move and I just completely missed it. Should have been watching this. This would have been a good one. Right to the pivots that I had. Came up tested, dipped down, which I usually use this 15 EMA out of the open. So if it would have held it’s 15 I probably would have taken an entry right as we broke the pivot here. Really a nice trade there. I missed it. Just dropped the ball on that one.

Sat back, I didn’t like anything else after that. Sat back for, I believe it was until, 730 or so. You see on this one. Oh, let me go back. I’m still in WFC so I’m watching it as I’m doing this recap. But, right here. I started to see this ROKU pop up. This is another one that’s started to interest me. Market was starting to look real soft here. And what I noticed is, volume up on the downside on ROKU we had a nice hard flush, so I was looking for a retest. Right around here, you started to see the tips of the moving averages really curl down. And we had this daily pivot of 5880 and the view up. So we had a lot of area of confluence of resistance here. I was looking for this to pop up on light or volume like we saw.

Oh, let me watch this.

On light or volume, I was wanting it to pop to 58 and I was going to take a sharp position to catch this move. Now if you see, look at the move it made. It was a good move here. It just wasn’t. The risk wasn’t there for me. After a couple of red days, like I said, I really, really hesitatant lately. Really controlling risk lately, I should say. And I just, didn’t want to trade this one. Sorry, I didn’t notice a speed line started to form here. If you see it, it was looking like that.

So, a couple of traders in the chat room took it. Good job to them. It was a nice trade. My pocket of risk on this would have been, I don’t know, 50 cents. It’s just not something I want to risk today. So… no entry on ROKU. Then I just sat back. Then we started to see WFC. WFC, right here. Right here I started noticing it. Had earnings, they were on a conference call. They dropped their interest for the year. Something along those lines. So I was watching it. Watching it. It started to break through VWAP, obviously with volume on a conference call. I didn’t take no trades during the call. I didn’t like it. I don’t like the headline risk. I tried to avoid trading during conference calls. So I started to see on this one. Was on this 24 second chart. Now this is my trading timeframe.

Waited. I had this trend line here from the daily. Came down and retested. And then we started to come down to the 47. Now this was originally on Mikes watch list in the morning. Just in case we had it moved down past this $47 level. It was going to be a nice flush out of the open. That’s what we were looking for over here. But didn’t happen. Once the conference call and they released the news. Then as you see, like I talk about all the time, is these triangles. Triangles are powerful. I love these. Only reason I didn’t take this one here is because of the headline risk of the conference call. Any other time I would have traded this. Look at the great move.

Once you start to break out of that this was a great trade here. Any other time besides during a conference call. I will not trade during a conference call. So I sat patiently. And the other reason why I didn’t take that as well was, look at the 5 minute. The 5 minute was just very extended, as we come in to support. Show you guys the 15 minute right here. WFC on the 15 minute so we just started to really, really get too extended for me, for my liking. I decided, okay I’m going to wait. If it’s truly weak it will give us another entry, which thankfully it did.

Missed this whole first initial move, went back to watch ROKU. Saw that one gone, came back to watch this WFC. Once I started breaking through this pivot here. I had a pivot off the daily chart 46, 44. Once it started breaking through that pivot, I was like okay, if we get a retest of 47 I’m going to look for another triangle or a pivot lower or high, which is what happened. Came up, let me zoom in here for you guys. Came up right here, started to test, then I started to see no buy pressure coming in from the larger time frames and on the level 2.

Right around here, right around these candles, a big buyer came up at 46 and change. Right around in this area. When you see that on the level 2, I usually read that as a bearish sign. You’ll see the level 2 start playing around. You’ll see a big buyer, 2 or 3 levels below the current price. And then you’ll also see on the offer side, you’ll see a lower amount than what is on the bid side. But then you’ll see that start flashing. So somebody is there chewing up the orders and they’re there manipulating the price.

So starting to see that this has a large float so I don’t think that was such a big cause, but once I saw that, uh okay. I’m going to take a position. I got my entry, first entry right in this area. Once I saw that low or high start to form, once it broke I added, almost immediately, I added on that one. And yeah, I started to take profits. As you guys know, it’s been a really, really dry couple of weeks. So I was a little quick on the profits. I took them at 1 to 1, then 2 to 1, then 3 to 1. Typically I would hold a little bit longer during momentum market, but it was just been tough lately. So I took profits at 46.70, so right in that area, and then 46.60. And then I took more at 54. Ended up taking some more at 27. Right down here.

Then I said okay, I’m going to hold the balance. See what kind of retest of this pivot we get. And to see if we start rolling into this pocket. It has a nice pocket down here. If we could break past this lows. You can see the lows here. If we can break past this lows here, this has a nice pocket so I’m going to hold this the rest of the day. Or see what kind of retest we get of the VWAP area. One or the other is my game plan on this. If we look at this at a bit of a more macro view. So what I started to notice on this one. I’m still in about a quarter position. I added again. Right as we broke here. Right here we have the 13 EMA if you look on my other time frame.

Detach this window for you guys. This is what I’m looking at as I’m trading it. Got some speed lines up. And right here, its 46.70 area. What I saw here is okay, once it broke down that big buyer stepped up again. This time the bid was larger. It was a 300 bid. 3 levels down. So once I saw that I was like okay, I’m going to add. So I added here. I’m still in this. Right now my current position is at 46.56. And then I’ll just use this relative high here as a stop and see what kind of move we get. See if this starts to trend lower the rest of the day. Excel life is still holding VWAP. I’m okay with holding this. I’m going to look for this pocket to fill. Or at least lows. We’ll see what we do when we get there. But other than that, that’s pretty much it.

Let me show you guys P&L. What we got going on for today. As of right now, I currently got 500 and counting. Then like I said, awesome trade. Good to lock up a Friday. I have seven consecutive Fridays green. So Fridays seem to be my good days. Happy with that. Happy with the trade. Important note here that I really want to come across to you guys is that keep those losses small. It’s really, really important. When you know you’re in a tough market, you know that you are not trading well. It is very, very crucial to either not trade or keep those losses as tight as possible. I’ve taking one stab a day. Like I said, most of my reds are at $11, $118. I had a green day for $129. Another red for $145. So with today covers all that and I make some. I’m okay with that. It puts me green on the month. After an awesome month of March. Puts me green on this month and that lets me cover for earning season coming up.

Important to control those losses guys. Other than that, I hope you guys like the recap. Thank you guys for watching. Don’t forget to like, comment, subscribe. I will be seeing you guys on next recap. See you in the chat room tomorrow.

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 anytime I go live or upload new videos. Until then, happy surfing!