Good morning, traders, and happy Friday, March 12th. This is Jake from jakethestockguy.com. You know who it is. It’s your favorite trader, the guy who makes us all a lot of money.
What’s my watchlist for today? Futures are red, SPY is down. I haven’t had any coffee. I think SPY looks fine. This [00:39] is our support. We might [00:47] around today, not really get much. It might just be a consolidation day between Wednesday and Thursday. Test this [01:01], maybe test it twice. I don’t really see a lot of major moves to the upside or the downside today, just sideways, choppy.
We might get a push to kiss the 50-day simple moving average on the ten-minute time frame. Then we might come up here [01:21] to double tap resistance, and then back down to support, and then back up. The ten year yield curve, bond, we have to keep an eye on that. I think it’s all made up. It’s a hoax. The central banksters will just go in there and manipulate it when they need to move things in a certain direction the way they want.
If you ask me, the fundamentals are pretty strong on SPY on the daily time frame. This [01:58] was really tough action to trade. You had to just day trade in this [02:07] soupy action. I miss these puts. I was just patient for those three days, and then started buying calls again. Let’s see what the weekly looks like. It’s fine. Watch the RSI on the daily, on the weekly. Watch for conditions for being overbought. I can show you guys on the S&P 500.
See, the last time the RSI crossed 80 on the daily time frame on SPY, one was here [03:27]. Then we got that nice pull back. Then one was here [03:31], and we went all the way down to the 20 RSI on the daily. Never mind, it was only there [03:40]. Then we went down even further. The RSI right here [03:47], see how it was right here [03:51] at the 81, right here [03:55]. Then we pulled back for two weeks.
Unless RSI is at 80, I’m not short in markets. I don’t really buy puts. Let’s just keep an eye on everything. It’s all going to be good. Don’t you worry.
My trade ideas for a day trade are NVAX, BA, and JMIA. NVAX is looking so good as a swing trade. I wish I bought down here [04:46]. I was looking at these charts. I’m so angry. I wanted to get into a swing trade right in here [04:54] too because we came all the way down.
I’ll show you something. Right in here [05:02] is what I was looking at. We filled the gap fill window. We went to previous resistance. Now, it became support. I was looking at the stochastic on the daily. This is a good time for a swing. RSI and stochastic, both low, and now it’s like damn. From 150 to 218 already one, two, three, four, five, six days, incredible stuff.
Some of my friends don’t like to do the bio. They don’t like to trade bio stocks, or biotech. Me, I don’t really have a problem trading bio. I’m going to be keeping an eye on the options chain. I like the 230 calls. It’s a safe bet. BA, yeah, I would say NVAX is my first pick. I’m going to wait a little bit on BA. We’ll probably get a dip buy opportunity; 267 is the magic number. That would be an awesome push.
I’m going to wait on BA. I’m going to try the JMIA. I hope it’s not a sell program. It looks like a good dip buy to me. I’m just taking a look. JMIA could be a real jackpot. Sometimes you get a good feeling about a stock. NVAX, JMIA, BA, those are my three day trades. I probably won’t be getting into any swing trades today. I might just be kicking back and watching. I’m already pretty extended with my list of holdings.
From what I see, I’m not really too concerned. The fundamentals are all there with SPY. I wouldn’t say it took a big dump. I would just say it has to pull back to support to reload for the next leg higher. See [08:54] how I have all my lines drawn? It gets up to this [09:00] resistance, can’t get through it. Where does it go, back to support. Where does it go, back to resistance. It gets a little bit above it, and then it gets below it. This is an overnight session. What do they do? Gap it up above the resistance. We were able to stay above it. What do they do? Gap it up. On a smaller scale timeline, you can see this [09:38] channel is in play.
SPY is very important to watch. I’d like to see us get above it and maybe get back into this [09:58] channel on our way up, or if we come down we bounce here [10:02] and consolidate sideways. Then we just curl up. I would be really surprised if they dumped it today. That’s what everybody expects. Everybody is like, oh, they’re going to crash SPY or correct SPY. If we go back out to the three months, we can see right here [10:23]. We’ll say 216 to three, four.
It’s two weeks of basically selling. It was this weird megaphone. That is such tough action to trade. Then we got above it. We might come back to support and then push up. We could have a down day. Then just chop around this [11:19] 390 area, consolidate. We’ve got to consolidate for a little bit. We did make an all-time high yesterday, which is a big deal for the indexes. It’s a bullish signal. I don’t know what to tell you. Don’t worry so much. Relax, sit back, and enjoy the show.
That’s all I got for today. I’ll see you in the Slack and on the charts. God bless, be great because nothing else pays.