Morning Market Update

by DAN Good morning. Futures are down just a bit this morning, despite retail sales coming in higher than expected. I think that, with each passing day, the market is increasingly looking forward to additional stimulus boosting buying power even further.

Just a quick run-through of a few stocks:

$RIOT — I received some feedback on last night’s treatment of $RIOT, and it was great to see people understanding that there are low risk ways to trade high risk stocks. It’s up another 9% this morning, and you can use the same strategy of staggered stops and incremental buying. Just make sure you know what you’re doing. If you are wondering whether you know what you’re doing…you don’t.

Bitcoin popped through $51,000 and was up at $51,714 at one point. I have found that trading bitcoin is not as profitable as merely holding it. Trading it requires a great deal of time because it is so volatile. But the trend is decidedly higher, so why not just ride the lightening until the current flow stops?

$SHOP — reported good numbers but the stock is down. This highlights the risk of holding a stock over earnings — particularly when it has rallied strongly into the earnings number. Buy the anticipation; sell the event.

$PTON — Holding at support…right at the bottom of the range.

$TME — opening a bit higher this morning after a high volume breakout yesterday. This is a high squeeze pattern, which can have a lower chance of a big move simply because the start of the move comes from a squeeze that is extended above the 50-day moving average.

$ZM — continues to move higher along the upper Bollinger Band. Really nice, gentle trend.

$NIO — This trade is not working out. T he stock is going to open lower for the 5th consecutive day. I’m shutting this down rather than holding through lower prices in the hope that the bulls will bail us out. Hope isn’t a good method; it’s a strategy used by traders who do not understand the nature of risk.

Have a good day.

–Dan

Market Update