fbpx

Do you think playing the stock market is like gambling?

Are you a trader that just buys stocks that you hear about in forums, blogs, social media, and chat rooms?

Believe it or not…so many traders are. 

You’ll never win following the herd.

It’s just a dangerous game of musical chairs. 

Eventually you’ll find yourself in a position that moves against you hard and fast. 

If Most Traders End Up Losing Money
How Do You Avoid Being One Of Them?

Simple…you need a plan. 

Only take trades where you believe you have an edge. 

If you’re ready to take your trading up a notch and discover a way to develop a true edge against your opponents in the market…

It’s time I show you more about Daily Deposits and how I leverage its power. 

 

Daily Profit Machine

 

Daily Profit Machine is a unique 3-pronged strategy that allows me to take advantage of almost any trading opportunity in the markets.

The 3 main techniques are broken down into intraday momentum, day and swing trading Initial Public Offering (known as IPO’s), and unusual trading volume found in dark pools. 

And a common tool used among all three of these are my favorite technical analysis tools that I use to help time and predict the directions of the markets each day with Daily Deposits.

In this special article, I will share with you how I use technical analysis to determine the momentum of the markets and why I share this with the IPO and Dark Pool strategies.

Now let’s take a look at a Trade of the Day recap and see why technical indicators are so important in my trading.

 

Daily Deposits

 

Daily Deposits is a momentum trading strategy that is based on a unique blend of technical analysis and indicators.  

Technical analysis is a tool used by traders to time and predict the direction of the markets.  

And if used correctly, a trader could pull down massive returns in a few minutes of trading!

So… in order to successfully achieve these high returns, I have combined a set of indicators that can pinpoint explosive moves in the SPY!

So why did I decide to choose PUTS before the market even made its move lower?

Let me explain…

 

Daily Deposits – Fundamental Analysis

 

From the pre market session, futures are moving up and the VIX is starting to taper off.

 

 

Strength continues throughout other markets, and this morning oil and bonds are slightly higher.  Additionally, bonds started to catch a bid higher and the currency markets are appearing to be weak with a risk off mentality.

 

 

Gold and silver continues to show continued strength and currently the world markets are green as well.  Much of the positive movements in the equities markets are tied into  the earrings season, with a boost in stock prices seen from Microsoft and Tesla.   

Now… let’s take a look at the technicals in the SPY pre market trading activity.  

 

Daily Deposits – Technical Analysis

 

Daily Deposits is based around a set of momentum indicators that were selected to identify market direction prior to the market open.  

And recently, these have been put to the test in one of the hardest markets to trade in history!

The pre market analysis starts with:

  1. The global overnight outlook
  2. Sector review to identify strength in the US Markets
  3. Premarket momentum and technical analysis review on the SPY

When analyzing the premarket session there are two primary things you want to reference when determining the trend of the markets.

The two pre market trend signals are:

  1. The overall trend is positive or negative
  2. The moving averages support the direction of the trend

 

Applying this to the SPY’s

 

Futures are up to slightly mixed this morning, and the QQQ’s are slightly higher leading the market in the pre market trading session.

Currently, the 10 moving average is under the 20 moving average, and this is seen on all three major timeframes.  

This is starting to show short term momentum that is pointing to weaker prices.  Currencies are also sharing the same viewpoint, with traders wanting a risk off market.

 

Source: Thinkorswim

 

As you see, the pre markets are showing continued weakness throughout the morning, with decreasing to negative momentum in the TTM Squeeze indicator.  

 

Wrapping Up

 

While Daily Deposits is known for trading momentum on the SPY’s,  there are many ways to repurpose the indicators and technical analysis to use for any other trading styles.

And in my few articles, I want to show you exactly how I combine technical analysis with Initial Public Offerings to land some great profits in my trades and how I profit off trading done in the dark pools.

Now if you’re ready to learn more about the Daily Profit Machine… 

Click here to find out more about how it all works.

Author: Ben Sturgill

Ben leads two services at RagingBull. IPO Payday can help you pinpoint, position, and profit from IPOs. In Daily Profit Machine Ben guides day and swing traders to profit by trading the SPY Index. Ben hosts the RagingBull.com weekly podcast WealthWise where he shares thoughts on wealth and success with traders, businesspeople, entrepreneurs, and experts to uncover and share the wisdom needed to live a wealthy life.

 

Earnings is one of many catalysts that can allow traders to play a run-up on a stock. 

While trading around earnings can be a gamble, I like to use all the resources at my disposal to anticipate how things could play out. 

That includes my dark pool scanner, which tells me what Wall Street’s top players think. 

Fitbit (FIT) is one company that has an earnings announcement coming up.

Dark pool activity around FIT was going nuts yesterday, and I saw activity in it as early as last week as well. 

For example, one big player came in and swept up a whopping 500K shares of Fitbit…

 

 

Does this big player have some non-public information about the FIT earnings on August 5?

There’s no way of knowing for sure, but I’m keeping FIT on my radar and looking for potential opportunities to get in. 

That’s why I want to show you the FIT chart and some bullish news I’m looking at. 

 

The Technicals Look Bullish for FIT Right Now

 

The FIT chart looks really interesting right now. 

It has recently bounced off the 200 day moving average at $6.10 and now sits below resistance at 7.10.

 

 

So it’s no surprise that several orders came through for this yesterday on the scanner.

FIT hasn’t really moved a lot yet, but it could easily break out from here and run. 

There’s still time to get in on FIT ahead of August 5 earnings. 

But my interests in FIT are not purely technical…

 

COVID-19 Research Through Fitbit Could Push Its Stock Higher

 

I’ve been coming across some interesting pieces of news regarding FIT that I find bullish. 

Fitbit watches are currently being studied as a way to potentially identify people with COVID-19 symptoms before they appear. 

Stanford University School of Medicine is currently conducting a study with over 5,000 people enrolled. 

They’re also gathering historical smartwatch data from the smartwatches of 31 people who already tested positive for the virus. 

Heart rate, respiratory rate, and other biometrics could signal early stages of a virus infection. 

So far, the research is showing that smartwatches like Fitbit are able to detect infection 3 days prior to symptoms. 

That’s really significant in my opinion.

Not only that, Fitbit itself is conducting an even larger study of its own— with 100,000 people in the U.S. and Canada, including 900 who were diagnosed with COVID-19. 

I suspect some of the recent Dark Pools activity I’ve spotted in FIT could be tied to all this news. 

To find out if I do decide to jump into FIT before the end of the day today or right before earnings, you can join my Dark Pools trading service here.

 

Author: Ben Sturgill

Ben leads two services at RagingBull. IPO Payday can help you pinpoint, position, and profit from IPOs. In Daily Profit Machine Ben guides day and swing traders to profit by trading the SPY Index. Ben hosts the RagingBull.com weekly podcast WealthWise where he shares thoughts on wealth and success with traders, businesspeople, entrepreneurs, and experts to uncover and share the wisdom needed to live a wealthy life.

Exciting news! We’ve got a new member of the Raging Bull team.

And this week Jeff Bishop interviews him. JC Parets, CMT (Chartered Market Technician) is a savvy technical analyst and founder of All Star Charts. JC has you covered for every charting and quantitative point of view you could imagine!

 

 

JC’s business, All Star Charts, is a research platform for market investors around the world and uses a top-down technical analysis approach. Before starting All Star Charts in 2010, JC worked on the sell side as a broker, analyst, and investment banker.

JC’s going to be a new technical analyst with RagingBull. Jeff considers JC one of the most experienced technical analysts out there and has personally followed him for a long time. He has great insights into the market, and using technical analysis make trades, and get a good, fundamental understanding of where we are as an economy, where the markets are right, and how to base trades off that.

There are underlying reasons why you should be in a sector or a specific trade or not. And that’s what technical analysis can tell you. 

Listen (or watch!) Jeff Bishop welcome JC Parets to RagingBull!

Author: Ben Sturgill

Ben leads two services at RagingBull. IPO Payday can help you pinpoint, position, and profit from IPOs. In Daily Profit Machine Ben guides day and swing traders to profit by trading the SPY Index. Ben hosts the RagingBull.com weekly podcast WealthWise where he shares thoughts on wealth and success with traders, businesspeople, entrepreneurs, and experts to uncover and share the wisdom needed to live a wealthy life.

Related Articles: