Though the markets are (very) extended to the upside, our thought process is that this uptrend will continue into December and early 2022.
While we know there will likely be a handful of pullbacks over the next three to four months, we’ll view each as buying opportunities in the strongest trends so long as the market maintains its bullish structure.
We’re building positions with patience here, and our number one goal is to pick our spots wisely.
We are dying to build a position in GOOGL as its 3-day squeeze looks poised for some action, but the stock is a bit too extended to offer a great entry here.
On the other hand, NFLX is the first trend we’ve started to “nibble on” as it pulled back to its daily 21 exponential moving average (EMA) on Friday. We are slowly scaling into positions with the understanding that we may take some short-term heat in the event the market does pull back.
We are completely fine taking any heat in the short-term and would look to continue scaling-in as we think these trends will result in higher prices over the next five to 10 weeks.
Another setup we are looking to build a position in is AAPL, which has a weekly, 3-day, and 195-minute squeeze. Any dip to the 21 EMA is a buying opportunity in our opinion.
We’ll be giving all our swing trades plenty of time to work here going out to December and January expiration.
When we look at recent explosive moves like in TSLA, NFLX, and IWM, each of these moves were triggered by a weekly squeeze. When a squeeze fires we tend to get five to eight bars of momentum, meaning a weekly squeeze can produce five to eight weeks of momentum.
Our goal at the moment is to build positions in some of these bigger squeezes to benefit in the months to come from the potential five- to eight-week burst to the upside.
There are a few more setups that fit this bill that we’ll be covering in Sunday’s video, so be sure to keep an eye on your inbox for that!
Stay Focused!