Morning Scoop
Good morning, all! Tuesday morning here from my make shift work station in Indianapolis. As I’m writing this futures have stayed in ranged, so let’s take a look at what we have going on today.
Markets
Futures stayed in range as I noted. This is good, let’s see if we can get out of this area and push past the top of the channel here.
I’m not overly optimistic we get the move that is needed but if we can push up some today it could open a could quick scalping opportunities.
I’ll be away From my desk but I’ll keep an eye on it throughout the day and see where we land at after market closes.
Trade Idea
I like this area here for DKNG, good risk to reward. It has given us a couple of things to note. It has filled the gap, it’s holding the 8 day MA, and RSI is still above 50. All these are bullish to me, good area for a move. Will all depend how the market acts that will determine a move or not on this.
• entry: at $19 or better
• stop: I would give it a $1.50-$2.00 range on stop, depends on your appetite.
• exit: $2 move is all I’m looking for, especially in this hit and run type of market.
Tricks of the Trade
I didn’t plan on doing any tips this week as I just don’t have enough time to get something well put together that is worth sharing. But this morning I was thinking about how the market has been pretty sluggish, unable to make up its mind about up or down.
This causes a ton of trades to just start trading out of boredom. They hop into trades just to watch themselves slowly get burned. Especially when trading options, the premium fades before you realize it.
The point is, if you are not feeling confident about price action. Sit on the sidelines, cash is a position. Stay there until it’s you’re turn to jump in. This game is all about patience, like a lion stalking it’s prey, it waits for the right opportunity. It doesn’t strike because it’s afraid it’s going to miss out. it strikes when it knows it has a good opportunity.
Morning Wrap-up
That’s all she wrote folks! Futures still in range, we want to see it above upper range if we get that we could see some stocks pop. And if we don’t we will just chop. Stay focused, don’t overtrade, and remember to protect your capital. Enjoy the day and happy trading!