During our Analyst meeting this morning, the idea I brought to the table was a long bet in Cloudflare $NET.
I like that it's just starting to break above a level of resistance that has been in place for the better part of two years.
My initial thought was to make a short-term tactical bet on a run to $100, but then I noticed that in the June options expiration series, the highest strike available is $110. Clearly the CBOE doesn't read All Star Charts research and our belief that this stock could touch $130 per share over the next 3-6 months!
Check out this chart of $NET and you'll see a move to $130 doesn't seem that outlandish at all:
If a new leg of the bull market is just getting started, positioning in the leaders should pay off well. With this in mind, we're going to get involved in a name everyone knows and uses -- Amazon. The odds are good that Amazon will deliver profits to those well-positioned for a run.
Implied volatility in the options affords us the luxury to go further out in time for our thesis to play out, but we're going to cap our upside both because we think there will be some upside resistance that comes into play and also to increase our odds of success.
The Analysts here are getting all bulled up on Nuclear energy. And for good reason -- some good clean charts.
One of the sector leaderss is showing signs of resolving a base that began forming in September after an impressive doubling off the lows set this Spring.
Objects in motion tend to stay in motion (I heard this once in a high school science class).
The stock is cheap and we can leverage into it to really juice our gains with out-of-the-money call options.
Today, a "darling" company in the media thanks to new obesity drugs and other good news hitting the media airwaves is selling off. In fact, its having its worst day relative to its sector peers in many years.
Someone forgot to tell Eli Lilly $LLY that a new bull market run may recently have gotten under way. Of course, it was already way ahead of the game. In fact, look at this long-term chart:
These aren't usually the trends I like to take the other side of.
But perhaps it's gone on a little too long and it's ready to pause and retrace?
This stock could get cut in half and the long-term trend would still be intact.
When we zoom in a little closer, we see a very notable (and sizeable) gap from this summer where the stock jumped from $450 per share to north of $500 per share overnight:
Crypto is showing signs of a resurgence. With Bitcoin trading north of $35,000 this week, many of the old bulls are coming out of the woodwork calling for the next crypto run.
Well, if the next run is soon at hand, today's trade is in a company that is certainly positioned to benefit from any uptick in sh*t coin trading volumes.
In the 16 months since we launched the All Star Charts Paid-to-Play options service, subscribers have enjoyed positive risk-adjusted returns with far less volatility and smaller drawdowns than a simple investment in the S&P 500. They've also learned how to execute our strategies to produce incredible outperformance versus comparable ETF benchmarks that seek to sell options premium.
But one thing we can all agree on is that we wish it could be simpler.
In an effort to simplify your trading lives, we'll begin presenting our daily trades and open positions in an easier format!
Instead of receiving numerous emails throughout the day alerting you to actions in the portfolio and producing repetitive videos that few of you are watching (we have the viewership data!), we're going to send you ONE DAILY DIGEST that packs far more punch.
The market is speaking. It wants higher prices. The year-end, seasonality-driven rally may be taking hold. Or it may be something else? It doesn't really matter. We only follow price, and right now prices in certain stocks are pointing us to start taking some directional bets.
Today's trade is in an industry-disrupting name that has already had an impressive move over the past week that we feel is only the beginning of a much larger drive.
Check out this chart of everyone's favorite ride-hailing service Uber Technologies $UBER:
If these were the first three lines people read in a book about profitable trading, odds are many wouldn’t make it past the first page.
It’s natural for humans to want to avoid pain, to choose the easy path, and to put in the least amount of work for the maximum amount of output. Business schools call this “efficiency.”
And you can find plenty of examples in the real world where this is good, solid advice.
Trading is not one of those places.
The hard truth is that 80-90% of people who attempt trading in any capacity, frequency, or timeframe eventually end up net losers.
So why would we want to choose to do what the average trader is doing? The average trader is a loser. The stats don’t lie. Don’t make this fact worse by denying it.
The powerful rally in stocks shows where the "pain trade" is (higher), and now I'm on the hunt for strong, leading stocks that will continue to turn the screws on the bears.
