Give a Strong Market or Strong Stock “Plenty of Room”

The Entry Points

Only one daytrade again for me today, and that was a scratch in ROKU, plus also entered a new short-term trade in OHPR at 1.34. Both of these are discussed in the video, but just the buy in ROKU, as the sale was after the video. In this morning’s premarket, I discussed how OHPR was still in an upward momentum, it had not yet “broken hard”. There were a few trading opportunities in there today.

Also in the video, why I always give a strong uptrend “plenty of room”, (sometimes too much room). BTC, or the stock market are examples. At the same time, there are opportunities understanding the different time-frames to trade in. Tops are processes, let them “tell us”. The process is a series of time-frames stitched together.

In the 1990s, it got to the point that any stock which somehow got “internet” associated with them, would have a huge spike or rally. But yet it went on for years. So as to the current environment, DPW was the one specifically from this morning:

DPW has crypto news with a subsidiary. I remember back in the 1990s and into and after the March 2000 top, just mentioning “internet” was worthy of huge rallies in those stocks. Some of that is going on now. But to put in perspective, that went on for years 20 years ago. Talks of bubbles, and crashes, were everywhere. And yet it went on for years. I’m basically “bullish” on almost everything, except for bonds.  As SW said, just trade. If the trend is up, look for your spots to enter. And manage risk. Period.”

And DWP had a big after-hours upthrust, up to 4.25, thru 17 years of resistance. It “kind of pulled” a MARA, just with much longer-term resistance.

 

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About traderscott 851 Articles
Trader Scott has been involved with markets for over twenty years. Initially he was an individual floor trader and member of the Midwest Stock Exchange, which then led to a much better opportunity at the Chicago Board Options Exchange. By his early 30’s, he had become very successful in markets, but a health situation caused him to back away from the grind of being a full time floor trader. During this time away from markets, Scott was completely focused on educating himself about true overall health and natural healing which remains a passion to this day. Scott returned to markets over fifteen years ago where he continues as an independent trader.

5 Comments

  1. A)Can you define in terms of percentage what is “plenty of room”?

    B) Referring to 1:50 on the video. In real time what had you taken into consideration before deciding it was a retest?

    C)Possibly can you talk more on compression and compressed areas. What makes a bullish vs bearish compressed area.

    Thanks Scott

    • Good morning. I’m doing a plenty of room post this weekend. And no it’s not percentages. Good questions, good work. Let me write something up about the other questions.

    • This is going to sound contradictory but will be explained more in a bit.The retest thought was about believing in ROKU being in a strong uptrend, and giving it plenty of room, but realizing that a strong often sets up with less of a setup. And I believed that we saw 123. Meaning PS, SC, and the next push lower would be the #3, and so I believed (a bit too early) that it was a retest of the area. 123 can take several shapes. But so much of this is pure experience and seeing things over and over, and even when early they can work out, if you get the context right.

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