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Several key trading setups to use

And my current watchlist for you to check out…

When the market’s up at the highs, you may feel like there isn’t much to do.

Now, if you’re a normal, buy the dip, trend follower (like I‘ve been for so long) that’s definitely the case. However, I have different setups for different types of price movement.

Here’s the one that’s working best for me right now (plus, I’ve included an awesome watchlist at the bottom for you to use)…

Right now, my favorite’s been the Short Squeeze — and this setup is perfect in this type of runaway market. 

Here’s a breakdown of a few of my key trading setups:

Squeeze — My favorite breakout setup, which is when I look to identify tickers that’re in consolidation and will likely breakout. My goal is to trade the breakout higher. 

Fibonacci Analysis — My favorite buy the dip setup, where I use technical analysis to identify high probability entry points on a dip. 

Reversion to the Mean — One of my least favorite setups, however a setup nonetheless. Trading this setup means a stock’s already experienced a solid, directional move, and your goal is to trade it as it pulls back and settles back down to the mean. 

Short Squeeze — This is my favorite setup to use when the market’s at new, all-time highs. It sets up when stocks that are highly shorted experience positive movement, causing both longs to pile in and shorts to close out their positions (therefore causes them to buy as well). This extreme buying pressure causes the stock to squeeze higher in a bullish move. 

For those of you in my Mastery program, or in the trading room, I’m sure you’re familiar with some of the trades we’ve made lately in tickers like TSLA, VICI, CGC, and TLRY. Each of these names have been short squeezes, and provided us with excellent momentum moves higher. I’ve traded TSLA over and over, and last Friday I got a perfect $475 pin on my butterfly, buying it for $3.00 and closing it for $13.56! Today, we closed out CGC for 50-100% gains, so far!

If you want to join in on what we’re trading in my Mastery, you can grab a spot here.

The psychology, and the method of trading a short squeeze is unique, and unlike any other type of trade. It’s all about riding the wave until it ends. 

If you want more information about how to trade a short squeeze, check out my free video from this Monday, where I discussed my BYND and TSLA positions: If you want to learn more, watch it here.

What’re some other tickers I’m watching?

Check out my watchlist (this is a list I make every Monday for members in my Mastery program!):

  • CGC
  • TLRY
  • BYND
  • WGO
  • DHR
  • CVNA
  • EPZM
  • AMD
  • JCOM
  • PTON
  • TTD

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