Hi folks,
Volatility continues to remain high in this headline driven market. We’ve been taking a very selective approach in new positions in the Short-Term Trading account. The past 2 weeks we’ve seen a lot of ups and downs in the market and AoT took a slower paced, methodical approach! So, I waited until we had enough content to fill out a nice Weekly Trade Review!
We will cover $DKNG, $ADM, $AMD, $QQQ and set our newest trades $APA and $SLB aside until we see the trade through and close them out!
$QQQ closed out the week down roughly -3.8%~ and now sits at roughly -18.5% YTD!
The Art of Trading short term portfolio is now +20.3%~ YTD!
For new members, or those that are reading this review for the first time, the "SHORT TERM TRADES" portfolio is basically this:
The trade alerts will be labeled "SHORT TERM TRADES". These will be trades that last a few days in duration, and we will be booking profits and losses much more actively. Holding no more than 4 active positions at a time. We will look to capitalize on long positions and potential short positions when the occasions are right.
$QQQ Review – What to watch for next!
$DKNG Trade Review – From 3/01/22 into 3/02/22 – Position Closed (Short Side Trade)
$ADM Trade Review – From 3/02/22 into 3/08/22 – Position Closed (Long Side Trade)
$AMD Trade Review – From 3/02/22 into 3/03/22 – Position Closed (Long Side Trade)
Short Term Trading Spreadsheet update - AT BOTTOM OF POST!
Ok, let’s get started with the trade reviews! This review guide should cover the reasoning and the technicals behind each one of these trades. If you have any questions or feedback about the guide or a specific trade or section, write them down as you go a long, e-mail them to me and I’ll make sure to answer any question(s) that you may have!
$QQQ Review
What to watch for next!
My last note on this $QQQ chart was “Watch for the $334 - $335 area to hold. If it fails $325 into $322 could be in play!” This week we want to keep our eyes on the $322 - $320 area. Again, a break below this area could see accelerated selling to the downside!
Let’s keep a close eye on how technology stocks hold up in the coming days and weeks! This will dictate our long / short exposure in the AoT Short Term Trading Portfolio!
$QQQ closed out the week down roughly -3.8%~ and now sits at roughly -18.5% YTD!
In markets with higher volatility and headline driven moves it is very important to lighten up on exposure, carry little over night risk and most importantly keep an open mind and expect the unexpected.
$QQQ closed the week at $324.40 slightly above the low of $320. $QQQ had a very strong counter trend rally 2022-03-09. This type of action is typically seen in bear markets and that is why we must remain cautious when the market shows us strength in this environment. The majority of that rally was given back by the close on Friday.
$DKNG Trade Review – Short Side Trade
3/01/22 into 3/02/22 – Position Closed
We took $DKNG short on March 1st. It made a Bearish PEG candle recently then made a 60-day bounce back into the 50-day MA. To me this looked like a classic counter trend rally with weak volume characteristics when it reached the 50 MA.
I alerted the stock short to AoT members at $23.78!
I made a very nice thread on the development of this trade on my public twitter feed as well as updating private members day-to-day on the technical action of the setup! Let’s follow the public feed thread because I think this highlights this trade best!
As you can see this trade developed quite nicely. It made a very quick momentum move to the downside and played out quite well!
In the AoT portfolio we have been focusing on banking gains quickly and not letting green trades go red! We covered the short a little early but still managed to squeeze out a 4.4%~ gain in 1 day!
Volatility is can turn great trades into bad trades quite quickly. This is why we covered the position when we had the opportunity to do so. Counter Trend rallies in bear markets can be quite strong. So keep that in mind when you’re on the short side!
$ADM Trade Review – Long Side Trade
From 3/02/22 into 3/08/22 – Position Closed
We had been tracking $ADM in the Art of Trading feed a few days prior to taking the setup. What caught my eye was the strength and momentum above the 21 EMA, the classic bullish flag setup but most importantly the inside bars that started to form.
Here is the tweet here:
I followed the tweet up by explaining what I was seeing with the Inside bar and what it looked like:
The inside bar along with the strong momentum upward paired with the bullish flag is what made this a A+ setup!!!
When considering new trading setups make sure to consider multiple technical factors. You shouldn’t have to dig deep for them. They should be more or less obvious. Much like this ADM setup here!
The next few tweets will show you how I guided AoT members through the setup and how we traded it for a 9.30% gain over the course of 4 trading days!
Here was the tweet that alerted the setup long:
Using the technical characteristics we talked about we went long this stock on March 2nd.
I updated the AoT group as the trade developed. Contraction led to Expansion!
These are great educational daily tidbits that AoT members enjoy each day. I want to teach traders how to spot setups and trade them well! We did just that with this trade!
We sold half the trade on March 7th for $86.80. Up roughly 10% from the initial buy! Again, the short term portfolio is focused on BOOKING GAINS!
The very next day we sold the remaining half of the trade as the move started to look a bit extended! I did not want to give up the hard-earned gains on this trade!
In total we banked just over 9% on this trade inside 4 trading days!!!
$AMD Trade Review – Long Side Trade
From 3/02/22 into 3/03/22 – Position Closed
$AMD was a quick trade for us. The recent market volatility and weakness across the tech sector as a whole took us out of this trade via a stop loss a day after we initiated the trade long!
Here’s what I seen in $AMD as a long candidate at the time!
We went long the stock @ $118.90 on March 2nd:
We were stopped out the next day for a 4%~ loss.
This type of market is not constructive towards tech stocks in its current environment!
Here is an updated AoT short term trading spreadsheet as of 2022-03-13 so you can see what we’ve accomplished so far this year!!!
We will continue to stay focused in this less-than-ideal market environment, book gains and look for pockets of strength!
I hope you enjoyed this weekly review!
Happy Trading!
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