TSLA reported earnings, BA got a stellar review this afternoon by Jim Cramer, and I’m getting ready to press my foot down on this market’s throat. 

This market continues to bore me.  I’m so fucking bored.  If you’re trading this shit and aren’t buying the dip, and selling the rip like I told you last Friday morning, “For now, just keep buying the dip and selling the rip.” then you’re experiencing lingchi (death by a 1000 cuts). 

I just realized today is Wednesday…wow these have been 4 of the longest fucking days ever!  So I almost never play earnings and how bored am I? Well today I decided to gamble a little on TSLA earnings. 

Let’s try a little here.

So apparently, TSLA shares are hard to locate and I could only get in on the small position.  Everybody wants to short TSLA, and it’s so crowded that when I want to stick the knife in some more and twist…I can’t. 

I then make my call like a batter going to bat and predicting where he’s going to hit the home run to.  

TSLA 15 Chart

Just another home run.  1-0 RM. 

I was driving and I pass up CNBC on my XM radio.  Jim Cramer is on.  I listened to him talking about BA and how it’s going to go to $400.  $400 is his price target and it’s a BUY BUY BUY!  I remember looking at BA earlier this week and thinking…this is a good short.  Today REALLY looks like a good short, which is why I was wondering why this idiot was telling people to buy.  Let’s look at the chart! 

We have a rising channel on the daily and today it broke.  That’s why I said it’s a good short.  It might go to $400, but with the way the market is going right now…I say it goes to that blue line you see there first.  You can buy this stock $24 cheaper and that may be a good entry.  It’s not my kind of trade, but if you want to try to buy there for a few, that’s a good entry.  I rarely show my hand this early, but here it is.  Short here at $324, 1st tgt $300 and then evaluate from there.  Stops are a set at re-entry of the channel. I guess I’ll be selling to people that listen to Cramer.   Let’s go 2-0 RM.  

Last but not least.  I thought earnings would do it.  It didn’t do shit.  I thought the Fed today would do it.  It didn’t do shit.  This market is converging.  It’s making higher lows, but no higher highs.  We’re tightening up and where we go is where you should go to.  The action the last few days had my Spidey senses go off.  I’m no longer bullish and I think we go lower.  I won’t make my move until the market says where it’s going, but I’m more inclined to say short than long.  

There are two trendlines going on here.  The bigger ones on the outside, and the smaller ones on the inside.  The smaller ones are on the shorter time frame and it looks like we’re resting on the bottom of that line. As that trend has gotten tighter, that’s why I’ve been suggesting to sell the rip and buy the dip.  It hits the top of the line and goes right back down.  EZPZ.  It is getting so tight, it will have to pick a direction and from there it will go to 2 other lines.  Since I’m thinking it will go down, it will hit the infamous 200 day moving average which is that light blue line.  It either bounces off of that, which after hitting it 3 times, we should go through it and then we hit the bottom purple trend line.  Where we go from there? Based on price action. 

You’re welcome. 

-RM 

I posted yesterday about my doubts setting in for the market.  The macro analyst in me kicked in and I was a little hesitant about buying the dip.  I had my stops in place. 

The market was forming a handle and it still looks okay…but something didn’t smell right.  Google posted good earnings.  Had a pop and fail very quickly in after market hours.  I woke up this morning and scanned the market. 

 

Obviously, NVDA looks like it can’t make a new high on the weekly, so I then look at the daily and then intraday.  I rarely make trades during the first 15 minutes.  On NVDA, where it opened, I expected a pop to resistance and then a nice drop.  That’s what happened. 

This was followed by, 

This is where we open on NFLX

The positions were getting started. 

 Getting comfortable. 

 Things start to move. 

The last bit before closing out for the day.  I may have gotten a little too excited about this market going to shit. 

    

I have closed out a lot of my positions. It was a nice day with a lot of momentum.  The selling actually came in on the market.  Volume picked up.  Market trolled some people.  Gotta be ready to take the other side.  Read the charts and do your homework.   

Note for earnings:

I am long AMD, but will take some off tomorrow going into earnings.  I rarely invest, but this will be my “long term” stock play that I look forward to holding for as long as I need to.  I don’t hold through earnings, but as a position trader I hold some and buy and sell around earnings.  

I am short FB. #DeleteFacebook should be #DelistFacebook.  I am so bearish on FB.  I got short on FB and haven’t looked back.  I rode the thing from 180 to 160 and am short again from 170.  I rarely ride things through earnings again, but I’m long some puts for FB and hope to see $135 and below.  

Earnings have been good.  Outlooks have been questionable…just like the market has.  Join in the chat to be part of the live market calls, analysis, and action.  

-RM

I’m a position trader.  I hate having to enter and exit trades in the same day.  Unfortunately, you have to adapt to the market that you’re in.  I hate having to babysit a position.  I have better shit to do with my time.  But like I pointed out in my previous post, you have to get ready to enter and exit in this market.  On top of that, the levels…gotta pay attention to the levels.  That’s why this morning started out like this: 

NVDA opened above support, so I start buying it up on the drop into the support line.  

As the price dropped

So I’m done and now I’m ready for it to take off.  The market was choppy today, but easy money was made. The risk is very little as I want to risk ~$2/share right below support.  My target is $5 above – the blue line.  Risk 1:Reward 2.5.  Looks good to me.  Here is the intraday chart. 

If you want to see me and some traders make some calls, join the chat.  Professional traders calling out numbers, targets, ideas and talking shit at each other when things don’t go our way.  The job can be boring looking at charts and seeing numbers…which is why I’m a position trader . But, if you’re gonna look at charts might as well have some some fun while you’re doing it.  

-RM

President Xi Jinping speech saves the bull market.  Sends Dow up 400 points and S&P up 1.8%.  This story was followed by many touting that market was in a freefall after the raid on Donald Trump’s lawyer.  Vanguard founder Jack Bogle, said he’s never seen volatility like this before.  For the past 14 trading days (3 weeks) we have been trading within a range on the S&P futures (ESM18) between a high of 2679.75(27-Mar) and a low of 2552.00 (2-Apr).  That’s a range of about 5%.  Not super volatile per se, at least when putting it into the perspective of the last few dips and sharp upturns. But this is a great market for bulls and bears! 

You can make some great money buying the lows and selling the highs.  Shorting the highs and covering the lows.  This market is ideal for the old saying, “bulls make money, bears make money, pigs get slaughtered.”  You better know your support lines to know when to cover when you’re short and you better know your resistance lines to sell when you’re long. 

Today NFLX opened up above support at 302 and took off to 311.  Hit the resistance area and sold right back down to end the day at 303.67.  You could have made money buying the open and taking it to the resistance area of 310-311.  Shorted 310-311 and closed at EOD with a good profit.  How do you lose?  Well if you’re a pig about things and thought that the stock was going back to $324.  NFLX is about to report earnings next Monday (16-Apr).  

As earnings season begins, it’s important to keep this range on your charts.  It’s important because once we break out of this range, we will know where we’re going.  The market is undecided and if news or tweets don’t make it pick a direction, the earnings sure as hell will.  It will be the fuel that the market needs that will send it back soaring to highs if it breaks 2680 to the upside or falling flat on its face if we break the lows of 2550 area.  In the meantime, be nimble and don’t be attached to a position. Lock in profits and learn to call it a day. 

-RM