$TSLA stayed on watch today following yesterday’s overweight rating.
an overweight rating means the firm expects the stock to outperform its peers in the same sector.
ratings like this can bring additional buying interest and keep momentum going, which is why I like keeping them on watch.
But we still needed price to confirm.
Today, we cleared the PDH and continued hitting higher highs
pushing through our upside levels and working toward the gap fill at $407.68.
one of the biggest improvements i’ve made in my trading was changing where i start.
instead of looking for setups first, i look for catalysts.
earnings, economic data, upgrades, downgrades, company announcements
anything that could bring meaningful volatility.
once i have those names on watch, i let The Strat do the rest.
i still need a setup, i still need confirmation, and i still need my risk defined.
the news alone isn’t enough to make me take a trade.
$CMCSA earnings reaction came through
Stratalyst flagged it as a strong post-earnings mover with a history of clean price action so this was our high alert.
we had our levels mapped out, waited for the upside trigger
and took the move higher as price worked through our targets.
catalysts first
then let price action confirm.
one of the most important candles in The Strat is also the one doing the least.
the inside bar gives you the range.
the break of that range gives you the trigger.
simple, but important.
primo retweeted
I'm only going to say this once.
If you're under 40, this selloff is a generational opportunity to buy great companies at a discount.
$NVDA - $218 now. $325 stock. Data center revenue up 117% to $89B last quarter. Guiding $108B next.
$AMZN - $255 now. $325 stock. AWS reaccelerated to 37% growth, its fastest in 18 quarters.
$CRWV - $66 now. $140 stock. Revenue up 112% to $2.6B last quarter. $104B revenue backlog.
$AVGO - $340 now. $525 stock. AI chip revenue up 221% to $16.7B last quarter. Guiding $21.7B next.
$MU - $911 now. $1,550 stock. Revenue up 379% to $54.2B last quarter. Guiding $61.5B next.
$VST - $154 now. $215 stock. EBITDA up 31% to $1.77B. Committed up to $1B to KKR's AI infrastructure platform with Nvidia.
$IREN - $29 now. $75 stock. Microsoft handed them a $9.7B AI cloud contract. Power already secured.
$CIFR - $9.50 now. $30 stock. $5.5B 15-year lease with AWS. First site started paying rent two months early.
$CRDO - $178 now. $280 stock. Revenue up 115% to $479M last quarter. Guiding up to $535M next.
$ONDS - $6 now. $19 stock. Record $83.8M quarter, up about 13x year over year.
Nobody building real wealth did it buying all-time highs.
They bought weeks like this one and held on.
Catalysts are the cheat code to catching explosive moves when trading weekly options and 0DTE.
$MSTR was down 3% during premarket following news of a potential removal from MSCI indexes.
The overall market structure was bearish, and price was already trading below VWAP.
After breaking the premarket low, we got an inside bar on the 30m that triggered to the downside
followed by consecutive 2Ds until price reached the previous day low.
This is why I like combining catalysts with The Strat.
Catalysts bring volatility, and The Strat helps us identify opportunities to take advantage of that movement.
Especially when trading weekly options.
Just because a setup triggers doesn’t mean it’s worth taking.
Before looking for entries, i want to understand what the higher timeframes are telling me.
Bullish structure? i’m prioritizing failed 2Ds and inside bars triggering to the upside.
Bearish structure? i’m looking for failed 2Us and inside bars triggering to the downside.
The setup gives you an entry. the higher timeframes give you direction.
This context matters.
Not every breakout leads to continuation.
sometimes price takes out a previous high or low, fails to follow through, and reverses to take out the magnitude in the opposite direction.
In The Strat, we look for these opportunities using failed 2s.
simple concept, but context is everything.