Actionable Trade-Alert
from Rick in the Trading Room
(Please check all related discussion in the room before you do any trades.)
This morning’s rigged, short-squeeze opening created challenging highs too ambitious for dog-tired, gutless bulls to surpass, but you never know. The Trading Room is far more interesting than the markets themselves. If you haven’t visited the room, here’s what you missed, including a throwaway trade in ES that could have produced a quick, easy profit of more than $1,000:
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09:00 |
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09:48 |
NEWP: I’ve been holding a 100,000 share position in this stock. When it gets extended to the upside I trade out of 25-35K shares of it leaving the rest as core. Yesterday I bulked back up to a full position. Looks like the marque pivot is signaling a green light to make it to D. This has been a totally abandoned and misunderstood orphan stock.https://tinyurl.com/2s47m53v |
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09:49 |
ES 6884.00 target, slow in coming but inevitable, should show tradable stopping power. TI=6.25. |
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09:56 |
If Feb Gold falls to 4307.70, it can be bought aggressively with a ‘camo’ trigger or a tight stop. Currently 4361. A print at 4384.10 would trigger a ‘mechanical’ short, stop 4410. Recommended to Pivoteers only. |
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10:00 |
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10:02 |
Hi Rick, any update on EuroUSD Please ? [{{ I don’t track the euro, FX, but if you have a potentially tradable idea, I’d be happy to vet it. RA }}} ] |
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10:09 |
thanks on ES Rick! [{{ My pleasure. RA }} ] |
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10:10 |
Rick, did the ES trade triggered? I just paper traded it. “Out” 6876 [{{ Yes, at 6881.25. Half (2 contracts) would have been covered at 6875.00 for a $625 profit. It is in a bounce from p=6874.75, which is tied to d=6862.25 and p2=6868.50. d can be bottom-fished aggressively if you made/are still making money on the short, which just breached p. // UPDATE 10:29 p2=6868.50 just exceeded. Additional profit per contract there would be $650, for a total of $1375 on 3. Still short one contract, cover at will. RA }}} ] |
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10:35 |
Please note that a ‘dynamic’ trailing stop would have taken you out of the remainder of the position at 6869.00 if you used a risk:reward of 1:2. That’s based on a pullback low of 6866.75 that came within 4.50 points of the 6862.25 target. Half of 4.20 is 2.25 points, which would have been the width of your stop. This is a simple tool that can be used to manage the risk of any trade as it approaches your target objective. The logic of it is inarguable: Why risk, say, $2 or $3 of adversity just to capture the last 50 cents of the expected move. In this case, after having gotten within 4.50 points of the target, ES has rallied 16 points (against the short). As obvious as it is, I hesitate to claim the ‘dynamic’ trailing stop is my invention, but I’ve never seen it described anywhere else. |
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10:39 |
Good afternoon RickMay i ask something? [{{ That depends, Nick. Your question makes me nervous, but go ahead, what have you got to lose? RA }} ] |
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10:40 |
Again, only place I have been able to make any money is in this sector. It’s hot for now. When it’s over it will of course destroy latecomers. But the correct mindset has been no-one believes this can keep going so until we get capitulation to the upside the squeeze continues. The last few days appears to be the pause that refreshes allowing a reset. Today silver stocks on average are up 5%… Maybe Luongo is right:..https://tinyurl.com/ymh5pxbu |
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10:42 |
SI is coming at my $71 target too hard for the Hidden Pivot to stop it for long, if at all. $71 seemed pretty ambitious at the time, but SI is getting there with speed I hadn’t imagined. |
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10:43 |
Never mind Rick i will not ask.I do not want to make you nervous.Thanks [{{ Oh, c’mon, Nick, don’t leave us in suspense — go head with your question. If it’s dumb, what’s the worst I can do, right? RA }}} ] |
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10:51 |
The dynamic trailing stop is a pain killer!! |
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10:51 |
I was thinking for gold if it good idea to short at these levels with stop loss above 83 And target close to 4306-10 |
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10:54 |
Nick the masochist is what we will start calling you. Unless one really knows what he is doing it is best to NOT short against the primary trend. This is what Charlie Munger used to call the “too hard” bucket. |
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10:55 |
Ok clear |
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10:58 |
Nick, this is a PSA, I’m not wanting to be cocky, but do you have any idea how much opportunity there has been to be positioned on the right side of the market here over the past 4 months? That is the mindset one should seek out to identify these opportunities before they launch. (when I say right side I mean on the correct side of the squeeze and not shorting it) |
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11:00 |
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11:03 |
Ok Sparty thanks |
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11:24 |
Is anybody on board SIH? I have no clues how to enter this bitchy beast. Moments ago it passed p2 [{{{ Stop looking for ‘clues’. You should do your buying at p or d/D/ of countertrends. FYI, SI is actually on an unrecommended ‘mechanical’ short signal, stop 67.385, that projects down to 66.580. // UPDATE 11:51 ‘c’ busted, but ‘a’ (5-min, 66.760 on 12/19 at 9:45 a.m.) is still valid; just move ‘c’ higher, to 67.420. That makes d=66.62. Rinse and repeat if a new high is created. RA }}} ] |
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11:27 |
I am not trading the Silver futures just long the stocks. That’s plenty of leverage for me at least. But silver just got repelled off of p2…https://tinyurl.com/4c7kau4m |
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11:31 |
However, the initial push through p was exuberantly decisive, leaving zero doubt that D will be reached. That means you don’t need x or p levels to get long ‘mechanically’ — just buy >> anywhere << above ‘C’ and below D and you’ll make money eventually. |
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11:41 |
TSLA: Precise pullbacks from p and p2 have confirmed this pattern and its 531.33 target 11% above. The gap above p implies the target is all but certain to be achieved. Here’s the chart:. |
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11:41 |
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