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Hello Trader,
You know what puts a smile on my face?
Looking down at [my LottoX portfolio]( and seeing all green on Friday.
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[And that doesnât include a couple +100% winners earlier in the week!](
With multiple sectors taking off, this weekâs top stock charts come to you from different areas of the market. I wanted to make sure everyone could find a trade to brag about.
In fact, this first chart comes right off that P&L above....
Sea Ltd (SEA)
Before last week, I had never heard of this company. Yet, a friend of mine put together a great scanner that picks up squeezes along with the short float.
I canât tell you how much time that saved me. It lets me whittle down the choices to the top quality charts that I wanted.
And this one looks amazing. Check it out.
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SE 130-Minute Chart
Even though Iâm showing you the 130-minute chart, there are actually setups on multiple timeframes. That makes this a great trading opportunity for intraday and swing trades.
What we have in front of us is a classic [TPS setup]( and a potential short-squeeze.
With the [TPS setup]( you get:
- A clearly defined uptrend where price moves higher as time goes on.
- A chart pattern consolidation, which is highlighted by the two orange lines that connect the highs and lows of the candlesticks (forming a triangle).
- A squeeze identified by the red dots at the bottom which indicates the Bollinger Band indicator is trading inside the Keltner Channel.
Now, this trade has excellent potential because itâs got a high short float. That means a large number of shares have been sold short relative to the total shares available to trade.
When traders sell shares short (bet against a stock), they borrow on margin from their broker. If price climbs too far, the broker forces the trader to exit their position to avoid further losses. Traders close their positions by buying back shares. That forces share price higher, which creates a cascading effect.
So, with all that being said, I love the fact that this chart has both a [TPS setup]( and a potential short-squeeze catalyst.
You can already see that Iâve got the May 15th $55 calls in the stock. I like trading the options because they give me leverage without as much overnight risk. If the stock breaks the pattern and closes below the lower trendline, I exit at a loss. Otherwise, I plan to see where the next move higher takes me.
Match (MTCH)
Sometimes love finds you online. For me, I find it in the charts. Match.comâs stock popped onto my radar at the end of last week with...you guessed it, a [TPS setup](.
Letâs take a look at the 30-minute chart.
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MTCH 30-Minute Chart
First, I want you to take a look at the left orange box. See how the red dots shift to green? Thatâs when a squeeze fires. Notice how that coincided with the stock jumping higher.
That is exactly what Iâm hoping happens here. This setup has a nice uptrend in place thatâs come back after a recent pullback. Weâve again got a squeeze at the bottom along with a nice consolidation pattern forming.
The longer the stock moves sideways, the bigger the squeeze.
Just like Sea Ltd., this stock has an enormous short float of 67%. That means it could really take off if the shorts get squeezed.
While I havenât entered the trade yet, Iâll be looking for an entry between the 8-period and 21-period exponential moving averages. Iâd really like to see squeezes form on the hourly and 78-minute charts. That would give me a lot of confidence in this trade.
Knight-Swift Transportation (KNX)
Trucking companies certainly took a hit with the economy locked down. However, folks still need their groceries, and trucks make most of those deliveries happen.
While transport stocks got smoked earlier this year, that mainly came from the airlines. Trucking companies still look decent.
And when you get a load of this [TPS setup](, Iâm sure youâll agree.
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KNX 130-Minute Chart
Of course, we find a [TPS setup]( in this chart as well. Thereâs an easy to spot uptrend. The consolidation pattern is extremely well-formed, being pressed together by the Bollinger Bands (blue line indicators). At the bottom, you can see how the dots shifted from green to red, indicating a squeeze is upon us.
Now, the short float isnât too high here at 26%. However, thatâs still enough to give this stock a good jolt if it gets moving. Iâll be eying an entry early next week if this stock doesnât take off on me.
Want a P&L like mine?
Then youâre in luck. All you have to do is sign up for [my LottoX service]( and youâll get my trades streamed right to you along with text message alerts. Plus, you get weekly live training with me to help you improve your trading.
[Click here to learn more about LottoX.](
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Nathan Bear
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RagingBull, LLC
62 Calef Hwy. #233, Lee, NH 03861
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