In tonight’s video, we’ll cover trading TSLA to $500, which seemed like a distant target when we had a nice reversal trade on December 20, 2019.
Outside of TSLA, WW stock which hit our trending watch list on Monday continued to rise up another 9.99%+, which was absolutely incredible.
For our members that hold overnight risk, WW stock gave you a beautiful day trade and swing trade.
Finally, we’ll also take a look at the volatility that carried on into the market after yesterday’s rocket attack on the Al Asad Airbase.
Trading TSLA to $500
The journey of trading Tesla to $500 has been ongoing for quite some time. We discussed it in detail over the course of several of our Daily Trade Reports, for giving us nice reversals.
Starting December 31, 2019, TSLA started giving us signs of being potentially trending markets, using the Volatility Box.
December 31, 2019:
As we can see, TSLA broke above our Volatility Box cloud edge at $421.27 within the first 15 minutes on January 2, 2020. That confirmed the first sign of a potentially trending market, into the new year.
Now, let’s take a look at yesterday’s market activity in TSLA.
January 7, 2020:
The chart above should look very similar to December 31, 2019. Both times, TSLA closed within the Volatility Box clouds, and opened above the cloud edges the next day.
The key is to look for this breach within the first 15 minutes. The story the chart can then tell us is, “Hey, price exhausted here today. BUT, there’s still some fuel left in the tank.”
We discuss some other trending candidates, like TSLA below.
Likely Trending List – Jan 8, 2020
Using our new Stock Volatility Box Tool, we have a few different symbols that are on our “Trend Trending” list for tomorrow (January 9, 2020). Below is a sample list of just a few of those symbols.
Each of these symbols closed outside of our Volatility Box edge, and we look for them to continue to trending into tomorrow’s session, if they breach our clouds.
- Targa Resources (TRGP)
- Sailpoint Tech (SAIL)
- Pioneer Natural Resources (PXD)
- Philips 66 (PSX)
- Cinemark (CNK)
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 discussed our journey in trading TSLA to $500, and how we used the Stock Volatility Box Tool to help us do that systematically.
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 the impact of yesterday’s rocket attack, which initially sent the markets tumbling down lower. However, the markets quickly recovered, and proceeded to a new high of 3267.50.