Pre-market Live and Options Picks for 03 01 21

Good morning, traders, this is Jake from It’s your favorite trader in the neighborhood. Look at this Groupon. I still can’t get over this trade on Friday. We bought this dip, sold right here [00:43]. It was 100% return, not a bad trade. Then it dipped back down all the way to 35.56. I thought to myself, oh, I’m a hero. I am so genius. Then the options went from $.10 to $5. It was a 4,000% return trade right here [01:09]. Only on Friday’s guys, amazing. I mean, literally $1,000 would be worth $40,000.

I knew right up in here [01:25] was the big resistance for Groupon. I mean, you can do it at the top of the wick, but I don’t like that. I also don’t like to do it at the bottom of the wick either. Right there [01:43] you could have done it. Boom, it hits it, sell. Really, 4000%, that’s pretty rare. I think the best trade I’ve ever done is a 2700% return. This was another 2000% almost over, 1,000 to 40 grand, amazing.

One trade, it just changes your whole life, honestly. You make a year’s salary in one trade in a day. Granted, you pay your taxes on your gains. Don’t worry about all that. First, you’ve got to make it. Then you’ve got to keep it.

What am I looking at today? Let me go back into my watch list. I know for sure, Johnson and Johnson, JNJ, but let me just take a look one more time into my watch list. Oh yeah, PRGO, it had bad results. I don’t understand why this thing is just rocking and rolling. It’s up 11%, and it had bad earnings results. Something is up with this stock. I mean, it’s really overbought right now on the ten-minute time frame. If I got to the year-to-date, we can see we’ve got some overhead resistance.

Let me zoom out a little bit more, show you guys a little better. Here’s [03:28] some overhead resistance. Let me zero it out. I’m going to pull it up to that nice, round number, to the 50, right about there [03:39]. Also, some overhead resistance, well, support, I would say. It’s like support and resistance if you’re looking at the charts just right. This [03:55] was support, and then it also became support there [04:00]. Support, a little bit dip below it, got above it, down, held the support, dip below it, and now it’s probably back on its way to the 50.

Then if I zoom out to the big picture, let me see here [04:20]. I’m going to blow my screen up for a second so you can see [04:23]. We can draw a line just like that [04:40]. Is that touching? Not quite, but it’s right there. Okay, I like that. I can pull this [04:54] up just a little bit. Those [04:58] are my lines.

Go to the five-day. I’m on the ten-minute time frame. Zoom out a little bit, scroll up. Another thing I see is some resistance right here [05:37] too on a more short-term trend line. Yeah, this [05:41] looks like a trap to me. On the year-to-date on the daily time frame, it looks like a good set-up for a swing, see [5:54]? It’s still in a down channel. It’s coming up to this [06:06] on the RSI.

Every time it gets to here [06:10], it likes to sell off. See [06:14], you can’t really get above it. Then it goes down, back up, can’t really get above it, down. We might be just coming up to this double top, or maybe to the 50 and then back down. It’s a little bit of a higher risk trade. Also, it didn’t have the best results, I think, from an earning’s perspective.

JNJ looks great. They’ve got pro-vaccine news. Look at this [06:47]. This is looking good right here [06:50]. Nice wedge. Wedges don’t always work out the way you want them to. We also are a little oversold on the daily stochastic. It’s the red and the green. Divergence lines are getting tangled. We kissed this [07:14] 50-day simple moving average on the year-to-date daily time frame. Each candle represents a day. Up, and then down, up, and then down, so we’re in this [07:23] nice wedge.

Now, we could break down, or we could break up. It can go either way. Risk management, 3% your total portfolio in any one trade. JNJ looks really nice for even a swing trade. Let’s see what the weekly looks like. It’s been a while since we kissed the 50-day simple moving average. On the weekly, it looks like we’ve got some more downside. Ultimately, on the monthly, 200 is the number for JNJ , so something to keep an eye on.

Up next is SPY and then PLUG. SPY, I love trading SPY Monday, Wednesday’s, Fridays. The options expire the same day, day of expiration options. Nice gap up by the over the weekend session with the futures. Nice gap up above the resistance. Why grind it up? That’s hard. Just gap it up over the resistance. I’ll be watching SPY for a day trade either off the 20, or if I want to go long off the 20 stochastic on the ten-minute time frame if I want to go short off the 80 stochastic on the 10-minute time frame.

A lot of stuff happening right now. Markets are reacting positively to the stimulus news they just passed up on Capitol Hill, $1.9 trillion, chump change, really, if you ask me. I’m not sure what the news is or what the catalyst is on PLUG, but I think maybe it some Credit Suisse, JP Morgan, one of those people, they probably gave an overweight upgrade from a neutral to a buy. I think it got an upgrade, a price upgrade to 55 or 60. I have to go back and check the news.

I’m just going to be drawing my lines, finding support resistance, waiting for a good entry point. I’m not really in the mood to swing right now. If I go to the daily time frame after the dip we had on SPY the last two weeks, we can see things are setting up. I mean, this is a good entry for going out a month or two. Go out a month or two. Get the 65 strike price if you want to swing. For me, I love money a little sooner. I focus on more of the day trades, but I do offer a lot of swing trades for other members.

That’s it. Market will be opening soon in about nine minutes. Thanks for tuning in. You guys are great, love you all. Good morning, God bless, be great. I’ll see you on the charts and in the Slack. This is Jake the Stock Guy signing off.

Previous Post
Pre-market Live and Options Picks for 02 26 21
Next Post
Pre-market Live and Options Picks for 03 08 21