This trade pattern keeps repeating in the market, and I just banked again!
It’s my favorite trade strategy. And the entire play lasted less than 24 hours.
- It’s simple.
- It’s quick.
- And it keeps showing up.
When I get done with one trade, I start looking for the next…
We’ve run the same strategy multiple times this year… It’s one of my favorite trade setups in the market.
To the untrained eye, this price action might look random. But it’s not.
Every stock moves for a reason. And a stock’s most recent move influences the next setup. It’s all connected.
Our job is to find price action that hints at a high-probability second move.
Like this…
My Trade on NVDA
This was the alert I sent to traders in the afternoon on August 24:
“NVDA is on its longest losing streak in 4 years.”
This was a classic bounce trade after an overextended drop.
When I alerted the setup, NVDA was on its seventh red day and the earnings announcement on August 26 was quickly approaching.
I like to trade stock snapbacks. Whether they’re bullish or bearish…
When a stock extends too far in one direction, there’s often a momentary pullback/rally that I can target with short-term options contracts for exponential gains.
That’s exactly what happened on NVDA earlier this week.
Take a look…
The bounce on August 25 doesn’t look like much on the chart. The price only rallied 2.9%…
But the contracts I targeted spiked more than 30% from August 24 to the 25.
Here was my alert to sell on August 25:
The Next Setup
This was a reversion trade.
I theorized that NVDA would bounce into the earnings announcement because the bearish momentum exhausted itself just before. There were multiple days of selloff back-to-back, all while the company’s much-anticipated earnings date grew nearer.
Always remember, a stock’s price action is not random. It just looks that way because you’re not familiar with the market yet.
This trade setup will show itself again, soon.
You could fumble around for the next few months, putting together puzzle pieces until you learn a real strategy…
Or you could learn the entire 24-hour strategy HERE.
Once you have this strategy in your arsenal, you can reuse it on the next setup, and the next one, and the next one…
There are new trades to make every day in this market. Stop watching from the sidelines.
Learn my strategy and get ready for the coming fall/winter volatility
Stay Street Smart,
Jeff Zananiri
*Past performance does not indicate future results, Not typical.
