A viewer asked if I actually take these trades. Here's my 5,000 shares.
This week's free idea, plus a pro tip for spotting a de-SPAC on any chart.
Quick pro tip before the trade. Any time you see a stock that did nothing, just sideways nothingness around $10, and then suddenly the action starts, that’s a SPAC. It de-SPAC’d, ripped, and tanked like most of them do. This one has a decent rounded bottom forming now.
The setup is from our pullback system. A momentum surge higher, then a pullback into the prior range. Not the whole move retraced, just a dip back in. Entry was 7.24, stop below, and the time stop gets us out next Monday if nothing happens. The only time I hold past that is if it’s running hard, then I let momentum carry it for an outsize gain.
Someone asked if I even take these trades myself. Of course I do. Everything I build I build for me first, then share it. So here it is: 5,000 shares, in around 7.19. If I didn’t believe in the systems enough to put my own money in, why would I build them?
That’s the whole thing. Take the trades, trust the rules, get out on the time stop if it doesn’t work.
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— Michael Nauss, CMT, CAIA, CDMS