[08/06/2018] Trading Recap: GREAT Day & Start To The Week!
Hey, what's going on everybody this, is flu yell trader Jeff, part. Of the book trading, part time today's. Monday, August. The. 6th, welcome. To, forgive. Show/hide. Everybody today's. Monday August the 6th welcome to the show we're gonna rock, and roll today it was an incredible. Incredible. Start to the week, get. My notepad, out. So. I can share in on you guys what, happened, today but I'll just tell you this it was a beautiful. Beautiful day a lot of it action, the account was popping let's, waste no time really, quickly and going let me see how we did today. All. Right everybody today. Monday. August. The. 6th. We were up. Six. Thousand. Ninety. Eight dollars, and thirty four cents, yep six, thousand, ninety. Eight dollars and thirty four cents, of what a way to start. The. Week right, that's. How you do it guys that's. How you trade, this day is exciting, you know I went on the air on our Facebook, group this morning on the Facebook private, group trading, part-time and I did the whole market, review in the morning, it wasn't looking that good in the morning, it was kind of flat but, boy they, did hit it hard man we hit it hard today we're gonna talk about that marking, we're, gonna talk about cryptocurrency. We're, gonna talk about all sorts of exciting, stuff, on how we were up six. Thousand. Ninety. Eight dollars and thirty, four cents, love. It beautiful. Day I can't wait to get into the analysis, to see how we did it just. Excited, okay guys so if, you want to watch the show then. Go visit the blog because, the show is gonna be on the blog and again. I'm excited, man we made over 6,000, dollars I don't know how many of you guys made. $6000, today but, what a start to the week and there was some exciting, stuff going on so, if you want to see it go. Right now to. The blog for the rest of you peace. Out, we'll see you probably tomorrow all right everybody we're gonna see you in a couple minutes inside, the vlog. All. Right everybody glad, that you here in the blog this. Is for you dedicated. People today we're up six thousand ninety-eight dollars right, we're. Gonna go look at a a lot of stuff, can't wait we're gonna switch accounts I'm gonna show you one, of my. Hang. On a second here I'm going to show you this. Is another account, that I'm gonna show you okay so we're gonna trade, in this other account this way if we see some setups we're gonna rock us again the purpose of this show now is to take you through my routine. And. The, morning on the private, Facebook group trading. Part-time I take, you through the morning analysis. So now we're gonna dive in we're gonna take a look at the routine we're, gonna play some trades we're, gonna do the whole shebang over six, thousand. Ninety, eight dollars and thirty four cents or less hit it hard guys alright here we go here we go you might hear some babies crying some, dogs barking, - noise screaming we got all sorts of chaos happening, but the, show must. Go on, alright everybody so, what we're doing now is we're we're looking at our account we, see that the overall, stock market, today the sp500, was, up ten, points, the Dow Jones was. Up the. Dow Jones was, a thirty, nine point so we had a nice up day in the market, SP. Was good if. You notice here we are actually right. Here we. Just broke out today to do was a short-term, breakout.
On The, SP, Y so. What happens is when the SP, Y breaks out all you gotta do is go to look at the sectors, because, that means that the sectors, are probably, rocking, and rolling too because remember, sectors, or, what make up the. Sp500, so, today the Nasdaq, was up the, Russell 2000. Was up SP Y, was up the, diamonds, were up we, had eight sectors, up only, two sectors, down discretionary. Led. The way, today. With. 0.67%. Again. Internet's kind of slow but boom. So let's take you through our analysis, all right so. What we're doing here is let's get out our book okay. Document. And everything that goes on here okay. I want to switch and get to my other platform. Here. We're, gonna make us a new page today, is August, the. 6th. So, let's take a look at our long-term posture. Really quick so if I go over here to my long term, posture. Posture tool, hang on a second, all right so looking at this the. Sp500. Long-term. Posture, is right. And, I know that because this is my long-term, posture, study set it is. So. Then when I drop down to six months. And. I change this to this study set right here. My. Intermediate, term, posture, is up. Right. So, all I'm doing is I'm checking my posture. My routine. The first thing that I do every, day as I check the long term posture, of the broad market the intermediate, term posture, which, is up and, again, since the market posture, is up. And. Then that gives me permission to take full, trades. On my intermediate, term trades so, then if I drop it down into this tool right here this. Is the market forecast, tool and I'd like to look at this green line the. Green line is in the upper reversal, zone so what that means is I have. Posture. Permission. Okay, so. Posture, permission, is yes now, for. Those of you who aren't on my classes, and you don't know what, the heck I'm talking about when, that tool is an upper reversal, zone. Or going up this, dream line that, means I have permission to trade. Intermediate-term. Trades and because. My posture. Intermediate. Is up that, means I have permission to take full. Trades, so, if I risk $1,000. Per trade that, means I have permission to trade, $1,000. Okay and since, my long term posture, is up that. Means I have permission to trade long term period if the long term posture, was down, I would not have permission to trade, intermediate. Term trades now, that doesn't mean that I can't trade short term trades right so. When I break this chart down into the three-month, chart, and. I go over here to my study, set that I'm looking for, right. Hang. On a second let me find it boom, there it is okay. Take. A couple seconds but now I'm going to look at my short-term posture, because this is gonna tell me on my short-term, trades my ATR, trades or my bull flag trades, okay. So. Looking at this and you might hear phones ring because I gotta have to happen okay so we, have right now short-term, posture. Is. Sideways. And, the reason why it's sideways is we went up to a high first, of all we pull back to a low we. Went up to a high pull, back to low these are equal, lows when, we have equal, lows or equal, highs or anything that is not a combination.
Of Higher highs and higher lows we, have a short-term neutral. Now we, did get a short-term, breakout, today okay so. There might have been some breakout, setups, and if you trade a breakout, setup she probably got a lot of those in your watch list because today was a valid. Breakout. Setup, but, my short-term posture. Whenever. It breaks out but we have two lower lows this, is what my short-term posture, is it, is up, to sideways. Now. That may sound kind of crazy but. The. Reason why I say it's up is we cleared a new high but. It's also sideways. So, you can also say sideways, to neutral, but, again when I do that, that means I can still trade, up, but. I can only do, a half, a position, so, since my short-term posture, has sideways, in it I can, only trade a half a position, now I said. Sideways. To up it, still got sideways, in there okay and the reason why it's up is, we made a higher high so if we pull back to a higher, low, after, the higher high my short-term posture, will be up but, right now it's sideways to up so, I have permission to trade, short-term. Trades, half. A position, okay so, that's kind of the key there guys now, what I'm gonna do is I'm gonna go look through my stocks, I have pending, right none of those stocks we're gonna look at our short-term, stocks, that this account was up 234. Dollars the, other one was the board six I don't remember what it was six. Thousand, ninety-eight this one was at 239. I had a lot more short-term, trades going on here short-term, trades were kind of in and out okay. So I have two eight, I have an ATR trade 280, our trades, ATR. Trades are average, two rains are short-term trades, in and out really quick right so, if I go over here to my short-term, trades. Going. On the, first one I'm gonna look at is Costco, what I'm doing now is I'm seeing if I have to make any adjustments. So. I like to drop down to a three-month trend now, I like, it today was up so, what I'm gonna do is I'm actually going to adjust my stop-loss, today. The low was, 221. Dollars, in one sense. I'm. Gonna move my load, of 220, dollars and 81 cents now if you notice it was two hundred and twenty dollars at 81 so. I am, gonna move it up yes. It's only one. Penny. Yeah once said but. I'm still gonna move it up because that's what my rule is say my, robots they just keep falling just in this bad boy so, I'm, going to go here to working, orders and, I'm going, to cancel, and replace, and. I'm going to you not that one and. Again it purpose of this class is not to teach I'm taking you through my routine right I have to do my routine in you anyway so might as well do my routine on the show so, I'm adjusting it for tomorrow and I'm gonna raise it to. $220. And 81, cents, you. Know let me just make sure I didn't go too fast there let's take a look at that make sure it's the seventh okay tomorrow. Confirmed. Sin bad, we just moved up to the less risk off the table again we, got in here. So. Right now we're, positive, right so we're good we just keep moving to stop up I mean we wanted to really move up but hey part. Of the game Verizon. Oh an updated, day now the, reason why I'm not gonna just my stop is today's low was, lower than yesterday slow, I'm, not gonna move my stop down so right now my current stop loss on, Verizon. I'm. Gonna leave the sale so, what I'm gonna do is I'm gonna go over here to Verizon I'm, gonna cancel and replace it and. If you notice, I'm just gonna change the date I'm gonna leave it 51. 67. I'm just gonna change the. Date so, all I'm doing is I'm in, this case I would, have adjusted my stop-loss, up, but. The low was, lower, so. I'm not doing nothing I'm still in that trade I chose, you my entry, I'm gonna stop my target, we're. Doing fine today we didn't do too much in those positions I. Mean. Well I mean like 60, bucks not a big deal again this accounts a smaller accounts I trade a lot of this or my classes. And. Fell away goes credit, spreads but two credit spreads 32. Days to expiration. We, don't do nothing we, don't even look at this training tour 20 days to expiration, now. We have an option trend trade going on the only time we look at this is if we need to adjust it, to protect a profit, so I look at my option, trades today this. One right here it's got 11 days left this one is my synthetic, my. Synthetic, is basically, I traded, an option, trade and a synthetic is, a way, to trade, like, a stock, but with options, so if you don't want to spin all the money to, buy the stock, you can spin a smaller, amount and trade what's called the synthetic, stock so. Today gold was down right, so. What I'm gonna do cuz again I got in the synthetic stock, up here, yes I'm going to adjust, my position.
Okay. My synthetic. This. Is what I do every day so I'm just taking you into my, routine, that, I do every. Single night okay, and, this is what we do we go through our first of all Kenard market posture we, go through. Our watch, list and we, make it just not our washes we go through our trades to make Chaney, and adjustments, which is what I'm doing right now and again, just make it adjustments. Nobody'll. This is like I said it's a synthetic, stock it's a trench raid okay. I don't like the fact that it broke short-term, support today but. You know what we. Have not got stopped out yet which, is cool so we're gonna keep going until we ultimately get, stopped out of this sucker reverses. Okay so. If you notice my stop loss of thing it's down here. Yeah. The. Stop loss is down here cuz I got it in here and this is where I set my initial stop-loss so we're. In this trade or, losing right now Trent. Is down but. I think why we did that trade was we saw a divergence. See this. Is a divergence, going on so like this is getting lower, well. This is getting lower this is getting higher so if you see here, our, divergence. And this is why I like this trade is see. How this is getting higher this. Is getting lower, so, that means there's a weakness, in the downtrend. So the, key is we just don't know when it's gonna reverse so that's why we set our stop-loss, down here, to, give us time to. Reverse. Right now it's up and then after hours with no big deal. So, that's come on the way we did it right there we adjusted gold today. We're, down 57, bucks no. Big deal I'm not gonna take you through some of the bigger holdings, but. That's. Kind of it that's the only short-term. Open, positions we got going on right now so. What I'm gonna do one quick is I'm gonna go back to my ATR, study set that, phone's ringing I do want to just really quickly look at the sectors, I like to do that just to. Kind of see what's going on here so I'm gonna break. It down into sectors, this is an uptrend, so. What. We like to do is it's it's a bullish sector. Pano's, I let. Me just take a look at the sector again. I'm trying to do it as we with talk to, show you what I do but. I like to go through the sectors right so. Right here today. It broke out this was the iyt, just. Now crossing, still, kind of sideways. This is sideways, I'm. Just seeing which sectors are going up right, just seeing what sectors, are going up because I want to pick out the strong sectors, and then find those stocks sideways. Again. We're looking for stronger, sectors. And then we're gonna trade those strong stocks, in the sector's now this is going up okay, it hasn't broke out yeah but it is going up so I think if I I look, up here have. My. Bullish. Sectors. It's. Not quite bullish yet. Okay.
Cuz. This needs to curve up a little bit so it's almost there. I'm. Go to industrials, and that, was up today which was good so same. Concept just cross and still kind of sideways we like to see that good solid uptrend like this. Xlk. Is definitely, in our bullish. Sectors, right okay. So that's. Okay let's go look at P you. Can tell us easy these lines see, how see. How this is clear, so, this sector is up now we got a bearish, camel today an inside day but, this, sector is up so I'm gonna right click and I'm going to add a to my bullish sectors. XLR. E that. Is again, it's going up this is going, up today. And we broke last Friday. We broke through resistance, but it is going up so it's gonna go into my bullish. Sectors if it's not already there, okay. And this one this again this one's going up so, again same thing right click bullish. Sectors, all I'm doing is I'm finding those sectors that are bullish so when I go in that look at the stocks again. This is up so. The healthcare I mean really easy, right you can clearly see that right here, it's not the look at it now up we have a higher high okay that's good cuz we're looking for stuff to trade this. Is going up these are going up so it is a bullish sector, okay. So Excel, why is a bullish sector so, now what I'm gonna do is I'm gonna dive into the stocks and that sector, because look I'm looking for stuff to trade you, all are now in my into. My world right this is what we do we do market posture, we take a look at our positions we. Look for this if the sector strength we see today it was very positive the, VIX I wanted, to look really quick the VIX should be down today. Vixx was down which is good because. We got the sp500. Was up right don't, think about the fix is it's sitting, right here support, guys so could bounce it if it does that's. A P could. Roll, over let's, go shake. It up here guys okay so we're gonna go to our borders sectors, right here XL. K so the first thing I'm gonna do now is I'm gonna go to the XL k and. I'm gonna go look for some. Setups. Know, if. You notice here really, quick I. Have. These at the gates, last. Week we were looking, at some stocks and, I put them in at the gates watchlist, then. What the asset gates watchlist is is. Its. Stocks that are looking good that could give us a set up the next couple of days but once they're, no longer set up we take them off so we want to go to our at the gate first, okay. So we missed that that's not a setup right so I'm taking it out of my at the gates it's, a breakout center but we're looking for is we're looking for bounce setups, okay so. Right here higher. High pullback. That's, gonna stay, I'm. Gonna, keep. That in my watch list because, it is a good looking, set, up here. That's. Also a bull flag that's gonna stay. Nope. That's no longer a bull flag and, again as I'm looking for really stuck, to trade guys so. That's what I do it go to my wash us look for setups and we place trades, missed. It up there you. Know I'm erasing those, stocks that are no longer setups. Okay. So this is a breakout, setup but I'm not looking for a breakout setups in this class I'm looking for a TR setups this is called Average True Range move. So. Now I'm gonna go to my technology. And. I'm gonna go through the watchlist that's all I'm doing really fast okay I might here to analyze like, tell. You everything cuz we're, going through stuff I do I did see Facebook hang, on remember, Facebook's like that massive. Drop it. Is now curved. Back up so maybe, it's rebound nope nope nope. Nope. Let's, go through the watch list and we're looking for bounce trades I'm already in this trade got, into that vertical, spread here so I did a vertical spread go, to my facebook group cuz I think I did that little live but. It's not a bull flag set up for this class nope. Got. Into it right there so this is one I got into the other day so. We got into the ATR setup I already analyzed, that today technology. Sector. Okay good so that sectors, down let's go to excel P, let's. Go look at these stocks in this, sector nope, I'm. Already in this I got in that bull flag ATR, trade right there we already analyzed that nope. Nope. Nope. Nope nope. Nope. Add. That to the watchlist guys I. Had. Added to bullish sectors, by bad huh yeah I was going so fast let, me let me get it out of bullish sectors. WBA. That. Is at the gates move, to. Putting. Out of my at the gate bouffard, let's go back here alright. WBA. Walmart. Yeah. No we're doing guys going, to our watch list. Looking. For setups, so we can trade that's it, nothing. There that's look they might look good in the future but now we're not so. Let's go back to our sectors, bullish, sectors, XL, r e. Hang. On a second.
I'll. Come back to that one. Real. Estate sector, I'll. Come back to that let me go back and take a look at that yeah I mean it's going up but it's still kind of flat no problem, again. I'm trying to get through these stocks because I don't want to keep you guys on this class forever, and a lot of days I'm gonna be placing the trades after the class cuz. Again I'm just going through my routine. Xlu, nothing. Nothing. Duke. Energy we're looking for a specific setup, right. Nothing, too. Late. Looking. For bull flags bull, flags prime bull, flags want, nothing. These. Are breakout setups going on again I see a lot of breakout, setups, but. When I train breakouts right now and it's been this class, here again. That's the market just broke out today so. In the market breaks out you should see a lot of move a lot of breakout setups on your watchlist, man. Am i funny nothing. I'm. Again because the markets not pulling back we needed to break out and pull back nope. That's it that's, all we're doing guys it's, going through our stuff bullish. Xlu, let's go to XLV. And. Yes sometimes that's it nothing there was a breakout set up but nothing, them looking for a pullback, nothing. One. Day pullback so I get another pullback, tomorrow, might be good but so. You know what I'm gonna do on seulji, is I'm gonna put it on I'm gonna add it to at the gates okay we don't have a son yet but we might have a setup nothing in the future, again. I'm just going through the stuff. Zoning. In on this right edge right okay. Pin, it I'm looking for a pennant that's an uptrend. Going. Up so. Once it's going up I'm looking for the bull flat I said it's going up so I'm waiting for that pullback don't have it going up very. Strong, but I need, some pullback see if I was gonna trade breakout this is a breakout setup but on trading breakouts with the ATR, kathy's these are gonna look good in a couple of days, nothing. There so, so far we, have a couple of trades that we can't look at but we're, almost done going. Through our kind of our routine and then we got to look at some actual setups, okay so. Now, we have xly, this. Is our last up, sector. So. Now let's go do the stocks and see if we can find that specific. Beautiful. Setup that we're looking for it. See. Right here there's a bear flag. Bull. Flag. Nothing. Nothing. Nothing, nothing. Nothing. Nothing. Is, it so. Now since, we've went through getting that's it we went through our stocks so now we're gonna go back to, our app the gates and we're gonna examine amis a little bit closer this is one day I'm. Gonna do that one day so again this is what we do well, now we're gonna analyze, it to see if it's workplace in a trade okay. So we missed the let, me see here real quick to. 3521. This. Is Goldman, Sachs. 235. 21. To 35 41, we've. Missed, it so, what I'm gonna do is I'm gonna look to see if. We. Can do a vertical, spread, it's. An option, strategy, okay I'm gonna go look at the 30 Delta right here - 30, -. 30 puts me let me see if it puts me under two levels of support, I, like. This trade to be under two levels of support there's. One, 30. Day moving average I need. To get back down to about the two 29. Nope. I'll. Try this one let me just see real quick I'm gonna try the two 27, 5, so. We're here if we confirm, it this is, $47. 23. Percent return, 23. Percent return in 32, days not, good enough I can go to 39, days I'm allowed to go between 20, and 40. Days but. I don't think I'm gonna get enough juice guys I can, go ahead to the 27. Try. It again I'm just giving myself a little bit more time we need a 30%. Return. 49. Divided, by 200, 100 24. Percent return not. Good enough so goldman-sachs gonna. Pass on Goldman Sachs we're not getting enough juice and. We already missed the bounce I like to catch, that bounce for the ATR okay so. Right here. The. Bearish, candle, kind of a pennant now ain't. Got nothing there same. Thing here okay so look at this right here we got a set low high. Low, let. Me see some. 67. This, is Walgreens. I'm sure everybody watching this show knows who Walgreens, is sixty seven thirty. Let. Me go look at the option chain.
Order. Look at the option chain we're gonna look at the 35, days closest, to the 35, days 30, Delta. 65.5. Where's that at. We. Needed to get under to about the, 65. 64. We. Can try this one really quick. Nope. Not enough juice we just don't have enough juice in these options, juice, means I'm looking for a specific return. On investment, based on this option chain we're looking for spreads, but. Again. Yeah. I just don't you know what I could do is let. Me check to see if I can do an ATR trade ATR Average True Range I'm gonna see really quick let's analyze the numbers this is Walgreens, so. WBA. ATR. Trade, and the. ATR. Is, 135. That means the daily. Move is one dollar 35 cents entry. So. The entry, into this trade, would be sixty. Seven seventeen. Sixty. Seven thirty-seven so right now is an actual valid entry so 67. Thirty-seven. Stop-loss. Okay. So if, that's my entry, our stop loss is 180. Are below, that so sixty seven thirty-seven minus. 135. Is. 66. Oh -. Okay. So our, stop loss is 66, o - our, target. Is. Two, times, the ATR, so. If our entry, was 67. 37. Plus. 135. Plus. 135. That. Is. 7007. Okay. 7007. That is our two times ATR, now, remember, we told you our short-term Posterous. Up to sideways. So. Normally, we risk $1000, we're only gonna risk. $500. Okay so. What I'm gonna do is I'm actually gonna put that on the chart WBA. ATR. 1.35. Entry. 67. 37. Stop. 66. Oh to. Target. 7007. Risking. Five. Hundred. Dollars, on, this trade okay so. For ATR, I'm. Just gonna put like that so you can see it okay. So, let's go to the option chain we'd, like to look at the we don't like to trade the weekly so we don't do the front, leg, we do the second, leg so we're gonna go right here we look for about 40 Delta first. Out-of-the-money, but it needs to be 40 deltas so this is what's called the first, out-of-the-money so. I'm gonna right click it and I'm, going to buy custom. Osio bracket, so, number one is we like to see over. 40 Delta which we've got the. ATR, and this trade needs to be above point eight zero which. It is, okay, and. So then we're. Just gonna do it here so if we're trading. $500. And the, ATR, right, here, is 50. Or the deltas 50. And. What I'm gonna do is. We. Can do three contracts, okay so, based on my rules, we, can do one two. Three. I can. Trade three. Based. On my rules if I'm willing to risk. $500. And the, ATR, is one dollar and thirty five cent move that means I've got two ATR, right so it's two point seven, zero, that's. Well actually the stop-loss, is 180, are so. It's one point three five okay. That's how much it can move against, me before. I'm stopped out and then, at the deltas 50. Actually. I can do five contracts. So I'm gonna do five I'm. Gonna buy five, of these calls, the, ATR, trade so here we go watch this now. We've. Already got, an entry, because, my entry, is sixty, seven thirty-seven, so. What I'm going to do is I'm gonna do a limit, order of, 184.
Which Way that don't want to pay more than 184. For. This trade okay. And, then I'm gonna do my calculations. And I'm gonna go. Mark. At her above cuz, again it's got to be above my entry, of 67. But he said this is an option. Trade, it's, called the ATR, but this is how you trade, options, right smaller. Portfolio's, you can trade options or even bigger portfolio's, options. Where, the money's at okay. And, I'm doing it Oh seal bracket, which means if I get into this trade I'm gonna have both a target order in a stop order one, will cancel the other okay. So here, my, target, is, the. Target, is, 7007. That's. What target and then, my stop-loss, which. Means I want to get out if it goes below. Sixty. 602. So. Here's the order let's look at it and take a look so we're gonna buy five WBA. 121. September. Call. 67.5. Is the strike that one dollar and 84 cents we're, gonna buy that if, the Margot's adder above sixty, seven thirty seven okay. That's our entry, we're, gonna sell five, september. 67.5. Call, if the Margot's adder above 70, point oh seven that's. Our target, then we're gonna sell five sixty. Seven point five call if mark goes at or below sixty. 602, so. If we get into this trade this, becomes an OC Oh bracket, order one cancels, the other so we're either gonna hit our target. We're. Gonna hit our stop loss but. We're gonna adjust along the way and I am doing five, of those bad boys you know 80 our trade, WBA. What, I'm gonna do is I'm going to tag, it so, that way boom, but, this is what that tree looks like guys, pull, back hi. ATR. Beautiful. These, two lines are going up we're, gonna make us some money. Alright. Everybody hope when you enjoyed that know what I'm good this is the way it's gonna be from now on I'm taking you through my routine we, know there's four indexes up eight, sectors, were up we did our daily adjustment. Our. Long-term postures, up our intermediate term postures, up we. Have posture permission, to take intermediate, term trades if we wanted to, our. Short term trend is sideways to up that means we're risking a half a position, so we're risking $500. On Walgreens. We're placing Walgreens. An ATR, option. Trade and. Move. Good at that made our adjustments, we're good to go alright everybody hopefully, you enjoyed that again I'm my purpose of this show is to do my routine since, I'm gonna do my routine anyway, I might as well do it on the item but until next time this is flu guilt-trip Jeff author, of the book training, part time we'll see you.