Weekly Raid #28 - The opening shuffle
Goooooood Morning Traders
Happy Tuesday I hope all of you are ready for a great day trading. As always look for prime setups and try not to overtrade if you can help it.
Lets Jump in
News of the day
We have a few things of note to watch today.
First up is existing home sales at 10 am. This could provide some volatility as housing affordability continues to be a topic of serious discussion. Be mindful of the time if you are day trading or in futures.
Second on the hit parade today are some Fed speeches as 2:30 eastern. Bowman and Goolsbee are flapping their gums and I am almost certain we will see a bump in volatility because of it. Same as with the Home sales number, watch your back if your in SPY, Q’s, or Futures. But I also think bank and consumer stocks could see an increase in volatility as well.
On a macro level today we are going to look at energy a bit more. I will have some additional thoughts on this as the year progresses, but for today we are talking about LNG and Nuclear.
First up is LNG. LNG stands for Liquid Natural Gas if you don’t know, as that is how it is transported and stored until its re-vaporized and piped to houses and business. This is relevant because China has emerged as a real LNG trading power. Chinese traders are setting up desks in financial centers around the globe and are increasing their presence and bankroll.
This is important because it can help set the price for some of the majors like Shell, BP, and Chevron. This will directly impact you with pricing.
Second on the list in Nuclear, more and more Americans are looking to safe nuclear energy (yes there is such a thing) to help off set some of the disaster this transition to green energy has been. I would like to be clear that Green energy definitely has a place in an energy plan, most of it can be generated during the day when AC’s and Heat are running and people are needing it. The problem becomes the storage aspect of it.
The leaves us with fossil fuels to offset the need. Nuclear would be a great way offset the need for some of the fossil fuel usage in peak and off peak hours and the latest generation of nuclear facilities are as safe as many of our fossil fuel plants. A solid overview of some of the gen 3 stuff can be looked at here.
Energy is vital to all of our economies so keeping up to date on some of higher level energy conversation could position you nicely to hop on investment trends before they become “mainstream”
Finally onto what I am sure most of you are looking for, todays abbreviated watchlist.
First up is NVDA still. It is making new all time highs this morning and with earnings tomorrow it could be a real runner. My starter short is getting run over, which is a solid lesson in position sizing. Losing sucks but I was happy with the trade at the time. Back to NVDA, because we have no volume or structure above us, I have nothing to lean on other then volume as it gets put in. The great Jesse Livermore always said to buy stocks as they are rising and sell stocks when they are falling (basically trend trading) so I guess we will see where it stops together. If you are Long NVDA into earnings please just have a stop loss in place.
I am also watching DE today for a starter position off the yearly VAL. If we open and hold green it could be a solid setup for a run back to the lower 400’s. Put spreads would be a solid play there as would really anything that would allow you to collect premium.
Finally we talked about TSLA last week and about some potential locations to place a trade. I closed most of my positions yesterday on it, but its gapping up premarket again so if you were long and are still long great trade. If you were not, watch the open before just blinding jumping into a TSLA trade. This stock can be a real widow maker if you aren’t careful with it. 245 is a price I have some some potential resistance and above that is the upper 250’s we break through the monthly POC with some sustained volume and it could be a very nice scalp long.
As always trade well and Good Luck