Pre-market Live and Options Picks for 01 28 2021

Crazy week we’ve had. We are looking at MIK, AYRO, AVAP, GOEV, and XL. I’m going to go to the counts. I’m going to cancel that one order. Go ahead and blow this [01:39] up. Michael Kors, go out to the year-to-date. I think last I was looking in the options chain on this stock, 22.55. Market’s not open, so you’re not going to be able to see the volume. I think it was pretty relative. I just zoomed out a little bit.

Then we draw a nice channel of this [03:36]. I’m going to pull this up a little bit right there [03:48]. Here’s [03:53] the bottom of the channel. I like that we’re getting this [04:02] curl up on the stochastic on the daily. We’re not really touching the 80 RSI or going any higher, yet. I like the 22.50 calls on this [04:25] as a swing trade. We’ll be keeping an eye on this [04:32] pre-market. Come in at the bottom of the channel. I’ll have to take a look at where we open.

Still a little bit of time left before we open, AYRO. Go to the year-to-date. Let me zero out this [05:32]. I like that we’re at the bottom of this [05:38]. You can make a case for this [05:42]. It’s getting pretty tight here [05:49]. It might break out. I’m looking for this [05:58] move. It could break down.

AVAP is another good candidate. You have to be able to find these things before they make their big move. I know a lot of traders who want to get in here [06:29]. You can only ride it up so much before we get that very over bot conditions. Also, I like this [06:44] area. It could break down on this [06:49].

Right now, this [06:51] is a visual representation of some things I’m looking at. Might get a pop here. I think the 7.50 calls is what I was looking at. GOEV, go out to year-to-date. It’s another possible candidate for a breakout. It almost filled this [07:55] gap window fill, not quite though, almost. A little concerning, so it might come down a little bit more. This [08:16] is the down channel. It could break down. It could break up.

I spend a lot of time after the market’s closed going through charts. There’s no magical pill. There’s no magical website, magical AI algorithm that’s going to find these for you. If they exist, only the ultra-elite hedge funds have these.

The 20 calls look good, and then the 30, 35. Can we go any higher than that? Really, it’s the 20 and the 25 calls. I’ll probably just get the 25s. Go ahead and place an order for it right now. Market yield until date and get not that many. I’ll minimize that and do that [10:21].

Last but not least, XL. I drew all these lines earlier, but they’re not here [10:48] anymore. Then we’ve got something like this [10:52]. Then we’ve got also something like this [11:04].

There’s no guarantees in trading. In my opinion, I think these look like good setups, good potential setups. Then again, you get this squeeze like this [11:27], but then next thing you know we’re breaking down. The red crossed over the white. It’s still bearish. We could get some down and sideways action for a while before we go back up. This [11:44] could go up, a little bit of a fake-out, back down, sideways, and then up.

That’s why risk management is the biggest rule in trading, in my opinion. It helps us save ourselves from any major disasters. You don’t know if you’re going to be right or not. You try and be right and give yourself high probabilities of being right. There’s no guarantees. That’s why you want to keep you position sizing around 1 to 3% your total portfolio.

I know it sucks for people with smaller accounts because it’s not a lot of money. Build your account up slowly, and then you can start taking bigger positions and still be – bigger positions, but still playing within the rules of risk management and position sizing.

That’s all I’ve got for today. Market’s going to be opening in about 25 minutes. If you want private mentorship, I also offer that. I’m going to try and do some sort of a one-on-one mentoring program. I can only take about five people at a time.

I think we’re going to have a good day. SPY is getting a little bit of a bounce. Let me zoom out a lot more. We’re in the bottom of the channel. I’m hoping we can continue up. I was under the impression that 400 was the magic number. Based on some technical analysis, I think we could get to 400, 405, 410. Then we get another 20% correction. If you think about it, they have to send it higher. They have to get it.

This [14:15] is either a 20 or 30% correction. This [14:20] was a 5% correction, 5% correction. We’ve just been chopping around in this [14:27] range. If we can get all the way to 400, 405, 410, and then do a 20% correction, it only pulls us back. Watch this [14:40]. I’m going to do something here [14:49]. I’m going to move this down a little bit, let’s just say right about there [15:02]. Let me put this at 413, bring it down a little bit. It would be something like this [15:31]. Go to the five year. I hope they don’t do it now. I could see something like that [15:59]. I could even go to 4, 420.

That’s what I’m looking at, just playing around with lines and charts. AMC, that’s the last thing I’ll talk about right now. AMC and so is GME getting halted from trading on a lot of platforms like Robinhood. I think we can see definitely higher prices for AMC. It’s having a little bit of a hard time getting moving because people are preventing it from being traded, unfortunately. Our calls that we got into yesterday don’t expire until next Friday. Big picture, trend is still intact.

That’s all I’ve got for you today. I’ll see you in the charts and on the Slack. Thanks so much for being a member. I really do appreciate it. God bless.

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