NVDA

NVDA is a stock that I trade all the time. This stock has great range, moving dollars a day and allowing me to catch good chunks. It also tends to trade on a lot of volume, 34 million shares on this day. So it’s really easy to get in or out. The setup I traded was based on a rubber band type trade. This stock was at $138 a few days ago and it’s been up 7 days in a row. Now NVDA is piercing the top of the Bollinger band, approaching the top level of resistance, and exhibiting really overbought stochastics. Trends are great when they’re gradual but when something runs too hot too fast, you often can get counter trend snap backs. Buyers are getting tired and they can’t push the stock up anymore.

My idea generation begins with the daily chart. Then, when I’m watching this stock intraday, I look to see how I can nail this thing down. On the 5 minute chart NVDA was simply riding its 9 EMA for a few days. It showed its first sign of a crack. In the morning you can see a big dump of about $4, which caught my eye. As it starts to bounce, you see the bounces fade off with lower highs unable to break over its previous highs. Now I’m hunting for my entry.

Our first entry would be in the wedge break. But as it flagged sideways for a few candles and the 9 EMA is curling down, we got an EMA sandwich. When your MAs are coming down on the stock, it compresses it to get it to push down. It will also help you manage your risk so that you can put your stop above the MAs. I entered with 300 shares and scaled out along the way. This was a quick counter trend trade. I’m not marrying it, but trading for some quick and easy profit.

If you’re not sure of the setups and price patterns that we’re talking about you can learn them all here at our Bulls Bootcamp. It’s an intensive 60 day course to teach you exactly how I trade and why. To learn more or signup, email me at kunal@bullsonwallstreet.com today!

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There are two types of capital in trading. You have your financial capital, which is your account size and max loss per trade/day and then you have your mental capital. This refers to whether you’re able to stay alert and follow your game plan throughout the day. This way you can hit the stocks on your watchlist when the time comes.

NVDA

On July 5th, I got stuck at the open trading NVDA. It got stuck in a range the entire morning. I had a whole host of stocks that were my top plays for the day. But i blew so much time on NVDA that I essentially checked out. I hit my max pain for the day, and I started missing the rest of my plays.

NVDA gapped up and I was playing this stock for a green to red. I caught a short at the open, but it spiked up causing my win to turn into a loss. That irked me because I’m usually not that greedy. I went for the home run and added too low. I then shorted NVDA with the anticipation of the break under the VWAP. It came down to 141.80 and then boom, 2 candles later it’s at 143.60. I ended up stopping out. I re-shorted as it came under the VWAP but it reversed again, turning into another loss.

Preserving your Mental Capital

If you’re struggling to preserve your mental capital there are a few things you can do.

• If you’re up a dollar or 2, lower your stop to your buy price to minimize your risk. This way you don’t have to babysit the trade but move onto other plays.
• If your focus is off you can walk away for the day. Tomorrow is a new day.
• Narrow down your watchlist as much as possible to only the best plays.
• Have multiple screens so you can watch different stocks at the same time and not have to switch back and forth.
• If your risk is causing you stress it might be a sign that you’re trading too big.

Making the proper adjustments to preserve your mental capital is essential to long term profitability.

In the morning, I hunt for gappers in the premarket. For my mentorship group, I do a morning class before the market opens. We talk about stocks that had news out and some of these stocks had amazing plays right out of the open. $ORLY had an opening range breakdown. This had a $20 move and I’ve been fighting for pennies. $TSLA was another huge gapper with bad news. These stocks tend to have multiple moves throughout the day – the opening range breakout, the VWAP test at mid-morning, and then the fizzle into the close.

Always remember that there’s your financial capital and then there’s your mental capital. Don’t blow it all in the morning fighting with a stock that isn’t even ready, especially if you have other stocks on your watchlist. Keep multiple charts open and don’t get pigeonholed into one thing so that you’re forgetting the rest of your game plan. It’s ok to be trading NVDA but it’s not ok to miss other setups that are clean and perfect for big gains.

If you’re not sure of the setups and price patterns that we’re talking about you can learn them all here at our Bulls Bootcamp. It’s an intensive 60 day course to teach you exactly how I trade and why. To learn more or signup, email me at kunal@bullsonwallstreet.com today!

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What we’re seeing in the market is a sector rotation. Sector rotation describes where and how the money flows from one sector to another. Right now a lot of money is flowing out of the tech sector which has been the hottest sector for the last few years. Looking at $QQQ, we’ve just been in an epic trend for years. But in recent weeks, a lot of money has been flowing out and into other sectors.

That’s a healthy thing. From these types of rotations, we as traders can see fresh charts and newly developed trends that we can play with. But when the money leaves a sector, we can see some epic shorts in that distribution.

Shorting NVDA

Recently there have been some amazing short opportunities in tech. On July 3^rd, I made about $1800 shorting tech stocks and $2500 in futures shorting the tech sector. The beauty is that I traded the same setup in both. My biggest short was in NVDA. Currently, NVDA is having a huge rollover after its epic run. This morning the tech sector gapped up. But when a market gaps up while undergoing distribution, those gaps will often fade. The strength becomes a major liquidity event.

When I saw this gap up, I knew it was a distribution event. The first trade of the day was in NVDA. There were two major clues that fueled our trade. First, the tech sector gapped up, and then began fading right off the bat. But looking at NVDA, it didn’t gap up, but instead opened up weak. That’s relative weakness. NVDA just started to make a move lower right off the bat. Eventually, you can see it run into support from its previous day and then popped up into its EMAs. When it comes back and breaks below on the second test of the day, the 3^rd test of that level, now I’m anticipating the short. I shorted it at 144.50 and as it broke down, I’m scaling out. You can see NVDA drop almost $3 in a hot second. When it bear flagged later, I added more shares and played into the next dump.

After it popped off of $139 into the 9EMA, I waited patiently for the re-short. What I want to do is watch to see if that’s where the stock gains traction. When it breaks back under, I have my confirmation and that’s when I reentered. If you’re not sure of the setups and price patterns that we’re talking about you can learn them all here at our Bulls Bootcamp. It’s an intensive 60 day course to teach you exactly how I trade and why. To learn more or signup, email me at kunal@bullsonwallstreet.com today!

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NVDA

NVDA is an incredibly strong stock that had a great run after releasing strong earnings back in early May. After hitting resistance at $160, it sold off for four days in a row but stopped right above its previous $146 support level. Now this looked like it could either flush down lower or bounce hard here. Watching intraday, we saw a fake break of the support level. Once the stock reversed from a red to green move, we bought long at $146.20 with a stop underneath. We rode it back up and sold it off at $151 .

TSLA

Another great bounce play that was on our list was in TSLA. TSLA closed right at its 20EMA level after a hard flush in the last 2 days. With the moving average holding it up, we watched the stock in the morning looking for a red to green move or a bounce right at support. TSLA gapped up at the open and faded right to the previous day’s support level at $362.50. Once the pullback was sustained, we entered at $365.15 with a stop beneath the lows. We sold off our shares as we rode it up all the way to $371.18

If you’re not sure of the setups and price patterns that we’re talking about you can learn them all here at our Bulls Bootcamp. It’s an intensive 60 day course to teach you exactly how I trade and why. To learn more or signup, email me at kunal@bullsonwallstreet.com today!

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If you look at $NVDA’s daily chart, you can see that it was trending higher between $95 to $110. After consolidating for the last few days however, the stock broke the trend when it gapped down that morning, opening at $105.50. This weakness is what gave us our first clue to our trade bias in the stock.

But that’s only the first part of the equation. Next we need to be patient and look for a valid setup intraday in order to know exactly when to time our entries. After a quick sell off in the morning, the stock bounced to $106.25. It’s this type of bounce we were waiting for before shorting into the price drop. After it broke underneath the morning moving averages we entered the trade for a quick morning flush from $105.50 level to the low $104.00s.

If you’re not sure of the setups and price patterns that we’re talking about you can learn them all here at our Bulls Bootcamp. It’s an intensive 60 day course to teach you exactly how I trade and why. To learn more or signup, email me at kunal@bullsonwallstreet.com today!

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