In tonight’s video, we’ll take a look at how the markets reacted to Iran’s rocket attack at the Al Asad Airbase in Iraq.
We’ll also take a look at a trade in WW stock from yesterday’s Daily Trade Report trending list (linked below). We did our homework, and built a list of symbols where we would focus in the morning.
After the first 3 minutes of the bell, WW stock triggered us into a long entry, looking to play the momentum and take advantage of probabilities.
Iran Rocket Attack on Al Asad Airbase Market Reaction
As of writing this note at 4:20 PM PT, we can see that the indices have come crashing down after the Iran rocket attack at the Al Asad Airbase in Iraq.
Currently selling off:
- S&P: -1.4% since afternoon open
- DOW: -1.3% since afternoon open
- Nasdaq: -1.5% since afternoon open
- Russell: -1.5% since afternoon open
Currently trending higher:
- 30 Year Bond: +1% since afternoon open
- Crude Oil: +4.8% since afternoon open
- Gold: +2.2% since afternoon open
All of the values have been rounded up to the nearest tenth decimal place, as the markets are moving faster than we can type this note.
WW Stock With a Nice +3% Win
We used our Trending Candidates list from yesterday to help plan out our morning. From our original list, we only had a handful of symbols that presented our Volatility Box trigger.
As a reminder, our Volatility Box trigger involves us looking for price action to breach above yesterday’s Volatility Box clouds within the first 15 minutes.
One of our candidates that met this condition was WW International (WW).
WW stock broke above our $40.03 Volatility Box cloud level, giving us the green light for a potential trending day. After our entry, WW stock shot up 3.12%, going up to $41.27 within the first 20 minutes of the market open.
At 6:33 AM, we were triggered into WW stock, with a stop below the previous day’s Volatility Box levels ($39.30). For our first target, we were looking for a 1:1 risk reward ratio.
- Entry: $40.03
- Stop: $39.30
- Target: $40.03 + ($40.03 – $39.30) = $40.76
Price action continued to drift up, even beyond our first price target. After that, you could use either the V-Score, options chain, VWAP deviation bands, etc. to find next targets.
For those who prefer trading options, the at the money $40 strike options were being sold for ~$1.46 at the time of entry. When we hit our first target for WW stock at $40.76, the options were trading for ~$1.70.
Using stock, our first target was a gain of 1.8% in the underlying. Using options, our first target was a gain of 16.4% in the ATM options.
Likely Trending List – Jan 7, 2020
Using our new Stock Volatility Box Tool, we have a few different symbols that are on our “Trend Trending” list for tomorrow (January 8, 2020).
Each of these symbols closed outside of our Volatility Box edge, and we look for them to continue to trend higher into tomorrow’s session, if they breach our clouds.
- Big Lots (BIG)
- Acadia Pharma (ACAD)
- Tesla (TSLA)
For all of our Volatility Box members with access to the tool, you can use the list above to create a game plan for tomorrow’s trading.
The key will be to look for price to breach above either the Aggressive or Conservative Volatility Box cloud edge in the first 15 minutes of market open.
Here is a comma-delineated list of the tickers above, that you can input directly into the Stock Volatility Box Tool:
If we breach above each of those respective levels, then we’ll be looking at those symbols as likely trending candidates for the day.
However, if we do not breach those levels within the first 15 minutes, then we skip the symbol and focus on areas where we have breached.
In today’s Daily Trade Report update, we went further into depth covering WW stock’s Volatility Box trade that set up from yesterday’s homework.
We have a handful of tickers that we’ve discovered on our watchlist for tomorrow. Similarly, you can use your own stock watchlist to check whether or not your favorite stock is likely to be trending for the next day.
Additionally, we also discussed an aggressive trade in the DOW Jones Futures (/YM) using our new Triple Check Method indicator (members-only).