Hey everyone, not too bad of a session Thursday as we went long in 4 positions on a some 400 point downside day in the market and came out on top. Technically on the daily chart Thursdays move signaled a huge bear signal breaking down from its descending triangle. But what have we been a huge witness to lately? Thats right false breakouts and breakdowns. Currently as i’m typing this newsletter at 12:30 am pst here in San Diego Dow futures are up 265 points indicating this could be yet another false breakdown and Friday could be a big short squeeze. Yet i’m not gonna act like a have a crystal ball here saying whats gonna happen tomorrow, that would be silly yah? This current market environment swings all over the place and we’ve seen the DOW move hundreds of points in minutes on a regular basis. Who would’ve thought we would see the day? But we are seeing it. We’re living it and breathing it daily and trading our way through it……..Lightly and conservatively i might add. Tomorrow looks to be a catalyst move in the market as we are either continuing this breakdown to 2002 lows near 7200 or the market is gonna bottom…. I’ll study my tarot cards tonight and see what they say

Man what an exciting trading day it was this after noon with the general market as a whole making huge gains in the last few hours of the trading session providing huge opportunities for us to profit on. One of the best day trading days in a while.

Day Trading Stock Pick #1

COIN

First stock we succeeded on was COIN which was breaking out of a strong resistance mark on the daily chart which signaled a buy alert and i was actually planning on holding over night. Yet shortly after i alerted Black Service Members to go long It exploded from my entry at 6.05 and surpassed 7/share in a fusion frenzy.. I took this opportunity and sold quick at 6.84

Technical Analysis:

The next two positions we made awesome trades on yet missed out on some larger gains as the erratic buying continued into the close. While day trading it is important to follow the general market movements to catch the swings off support/resistance/breakouts/breakdowns etc. Following the 60m chart on the dow (INDU) I got weary of the descending resistance on the descending triangle pattern as it is a bearish formation and the probability of it breaking to the downside is higher than price breaking to the upside. So i sold these positions heading into the last hour of trading and missed some big gains. But we made some great trades. Kind of hard to predict that the market was going to rally 900 points… I’m still in awe of this market. Seeing a hundred point move in the DOW 6 months ago was a big move.. “Wow what a big day the DOW jumped 127 points”. Haha those were the days.

Technical Analysis:

Day Trading Stock Pick #2

FITB

Next we tackled FITB. Price rallied huge on news of it getting some of the gov bailout money or something i don’t remember. All i needed to know is that this stock was moving, volume coming in hot, and the market was looking strong. I alerted black service members to go long at 9.23 and sold at 9.63 for a solid day trade bringing in some SCRILLA to pay them billas.

Technical Analysis:

Day Trading Stock Pick #3

MTL

Last but not least we hopped on board MTL for another solid day trade which we profited on. Could have made some big ones if you had the balls to hold on for the roller coaster ride. But i like to keep my balls safe, i wear a cup. i entered in MTL at 5.16 on the verge of the breakout after it had already broke out once as you can see with that upper extended shadow candle so volatilty was hot here so i wanted to get in and get out, take what i can. Went long at 5.16 and sold at 5.36. Price dropped all the way back to 4.93 from there before it exploded up to 6.72!

Technical Analysis:

Holy  guacamole! Is this happening? Am i entering in swing trade? Yes i think i effin am for the first time in a while because this market has been so crazy. But it looks like most market crushing bad news is behind us…. IE multiple banks going bankrupt bla bla stuff like that which weighed heavily on the market. Now it appears that the market could be bottoming and set for at least a short term rally for a few weeks or so, As well new stimulus packages certainly could help.

Take a look at the DOW currently on the 60m chart it made a strong breakout above the descending resistance line of the symmetrical triangle formation and the 13ema looks like its about to cross the 50ema to the upside for the first time in a while.

Technical Analysis:

Small Cap Stock Pick #1 - ????

This stock has collapsed from its highs earliar in the year from around $8/share. Today we saw a notable sign of a possible bottom at price broke out a recent resistance mark to make newer highs of its latest short term trend. Todays move also broke its short term descending trendline. I think its very possible we could see this move to 2.75 - 3 in the near term. I alerted Black Service members to go long at 2.26

Technical analysis :

Small Cap Stock Pick # 2 - ????

This is the first otcbb stock that i have found attractive in quite some time. BB’s used to be so abundant for easy 20-40% trades all the time so im excited to see some stocks moving again on the bulletin boards again. One thing that is quite attractive about this stock is that Legendary investor George Soros has some 10 million shares in this stock so he obviously is speculating that this stock has some solid potential. That along with its extremely bullish stock chart and im sold. I alerted Black Service Memers to go long here at 1.19 Today

Technical Analysis :

Today i went for another short on PNX again and although didn’t make that much money i at least made back my small loss that we made yesterday on it. This stock has been very volatile since last friday and even jumped over 9.50 today! Currently this stock is showing a bearish shooting star candle along with the Dow creating a double bearish set up for us here on PNX which could again set up a day trade on the short side. I’m still hesitant to hold stocks over night though due to the volatility risk we have see with the gap ups and downs. Nothing to brag about here but i alerted Black Service members to go short at 7.80 and covered at 7.64 when the market appeared to be buying stocks into the close for a 2.1% gain woot! So in light of this bastardo of a stock it really hasn’t given us what we wanted yet. So lets see what it has in store for us tomorrow eh? Maybe you should test out a free trial to black service if you want to make some coin with me and my crew of traders eh?!

Technical Analysis :

So todays rally was huge, well, the mother of all rallies in fact. The Dow Jones clean sweeped the previous record, which was 603 points i think i remember them saying on CNBC today, and closed up a whopping 936 points! This was also the largest % gain since 1932 and the 5th largest % gain in the history of the stock market. This is by far one of the craziest times in the stock market that you will witness in our life time. We’re gonna look back at this time in 20 years and say remember when we would see 500 point days in the Dow as if it was normal, dow futures would rally and fall near 200 points after market hours every session, and we would break new records just about every week the largest rallies and declines in a single day? This truly is a unique time that we are in for the stock market. Even though it has been a rough trading environment, it will be fun to talk about later in life for memories and stories to tell.

The most important thing is that we come out of this unscaved and prepared to make the right trades as they arise. Don’t force any stupid trades, stay conservative in this volatile market, sure you can place big bets and win big but with the big moves we are seeing these days your gonna lose big trying to gamble this market. And i don’t want too see you have to give up on trading because you got greedy and lost all your money. Diversify!

In any regards, it was nice too see some green today. But it doesn’t really matter what direction these stocks are heading we can day trade either long or short. The fact remains that the current market conditions are still extremly volatile, thus still highly dangerous. I mean shit the dow rallied 1000 points today, the market is still highly unstable and unpredictable for holding anything trying to swing trade. Day trading and cash remains King.

Theres a new sherrif in town.. But looks like hes a little out numbered hehe.