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Hello Trader,
[Just the other day I pointed out how Chewy (CHWY) was setting up for another move higher.]( I decided to take this trade in my [Weekly Money Multiplier]( account and was handsomely rewarded.
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[I expect they might have a bit more to go as they run up into earnings.](
This week I’m back, coming to you from the poolside. While my kids swim, I’m flipping through my charts for the stocks I like this week.
So, without further ado, here’s the three plays I believe could deliver some fast cash this week.
Amazon (AMZN)
We’ve seen a lot of the ‘stay at home’ plays separating from the pack lately. I don’t have to remind you about [TeleDoc (TDOC)]( or [Zoom (ZM)](, which have been on an absolute tear and still look good.
Now, we have Amazon showing up to the party as well.
Prior to the rest of the market making the major turn last week, Amazon threw up a signal that it wanted to go first. Now, it’s setting up with a classic TPS play that could put it in the same category as TDOC or ZM.
Investors have been scooping up shares of Amazon as it’s become the defacto shopper for everyone stuck at home. I know plenty of people, myself included, that get daily deliveries on everything from school supplies to clothing.
That’s why this chart looks so appealing.
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AMZN 78-Minute Chart
Here we have a picture-perfect TPS setup (or at least for this environment). The chart presents all three elements.
- Trend - Amazon pushed off the bottom earlier than the rest of the market, showing a lot of relative strength. It’s recovered substantially more ground than a lot of other stocks that have been hit hard. It’s clearly broken the downtrend for the time being and looks to be consolidating for another breakout move.
- Pattern - When I connect the tops of the candlesticks and the bottoms with the orange trendlines, it creates a triangle consolidation pattern. Traders use these to identify potential breakout opportunities.
- Squeeze - One element most folks aren’t aware of is the squeeze. That occurs when the Bollinger Band starts trading inside the Keltner Channel. It’s basically a signal that price is compressing and readying to break out. The red dots show this stock is getting ready to move.
With Amazon, you get the good and the bad. The good is the high amount of liquidity. This means you get better fills on your option plays because they’re more actively traded.
However, Amazon does have its faults. The stock is widely owned and part of most major ETFs. That makes it susceptible to market selloffs compared to more independently minded stocks like Zoom.
Considering these two items, I like the idea of selling short-term put credit spreads. This takes advantage of the high implied volatility while defining my total risk.
[You can read up on put credit spreads in my free article here.](
Inovio Pharmaceuticals (INO)
Rarely do I get involved with biotech companies. They aren’t really my cup of tea. But when I see all of the other gurus at Raging Bull from [Jeff Bishop in Total Alpha]( and [Jeff Williams’ Weekend Wiretap](, I start to pay attention.
There’s not much I can tell you about their drug trials that would make much sense to either me or you. What I can tell you is that I love this chart and it could blow up like the Stay Puffed Marshmallow Man.
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INO 15-Minute Chart
Even in the most remote sectors of the market, you can find a TPS setup. It’s almost like they work on any chart…
For this one, the move off the bottom isn’t just the start of a trend; it’s a short-squeeze. The stock already fired off from $3 to $19 before pulling back down to $5. Right now, we could be setting up for another short-squeeze.
This short squeeze could push the stock up from the $8-$9 range up to $11-$12. That’s a healthy profit in a stock that will likely do its own thing in this market.
Shopify (SHOP)
Shopify has made one heck of a comeback off the lows. I applaud its efforts. However, the chart looks like it’s setting up for a move back down towards the lows.
Let me show you what I’m talking about.
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SHOP 15-Minute Chart
In this instance, I’m not working with a TPS setup. Instead, I’m using a head and shoulders pattern. If this pattern played out, it could push Shopify back down towards the lows.
One reason I’m watching this pattern is because of the prior squeeze. Check out how the last time the dots turned from red to green the stock dropped. That’s a sign of weakness, especially when the market showed more strength.
Now, it’s got another squeeze building up that I believe could fire and take the stock lower. And yes, this chart is much weaker than the rest of the market on this shorter timeframe.
Not enough trades for you?
I get it. This entire time I’ve been sitting on the poolside looking at charts. What can I say, I love this stuff.
There’s tons of opportunities out there. The best way to take advantage of that is with my [LottoX service](. You get my trades sent right to your phone with the entries and exits. Plus, I hold live training sessions every week.
[Click here to learn more about LottoX.](
To Your Success!
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Nathan Bear
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RagingBull, LLC
62 Calef Hwy. #233, Lee, NH 03861
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