Christmas is almost upon us. With excellent trades all around us, I took this week to spread joy to Weekly Money Multiplier members.
I know a lot of traders and investors worry about playing the market up at these levels. They’re afraid of getting crushed by the pending downturn. And make no mistake…
A major downturn is coming!
That’s why I wanted to deliver you my best holiday trades that limit risk and keep you off the naughty list.
So grab a cup of spiced cider as I lay out my top trades for the week that put a few extra presents under the tree.
Yes, the ad controversy surrounding the company isn’t the best image for the business. However, I look at the trades through the charts and not personal opinions. That’s why Peloton made my top trade list.
Initially, the massive short-interest in the stock caught my eye at a whopping 60% of float. In layman’s terms, that means that of all the shares available on the market, 60% of them are sold short (IE people betting against the stock).
Gigantic short floats like this lead to huge short-squeezes. Essentially, everyone that bets against a stock borrows from their broker. As share price increases, losses in the account accumulate. When they reach a breaking point, brokers force short-sellers to cover their positions. They do that by buying back stock. That pushes up share prices, forcing more to cover, generating a spiral. This creates a ‘short-squeeze.’
The last major one pushed Beyond Meat’s (BYND) stock up nearly 100%. That’s why I want to ride this trend.
However, I have zero setups at the moment… surprised?
PTON daily chart
That doesn’t mean I lack ideas. Momentum shifted lower on Friday. I expect price wants to collapse at a minimum down to the 50% retracement at $28.74. However, my suspicion is price wants to break $27 before turning around.
I’m not the only one on this stock. Our IPO guru Ben Sturgill wrote a great piece recently on Peloton you can check out for free here.
PTON moves around a lot. You don’t need to take a large position to make a nice profit. I plan to pick my entries carefully and wait for the stock to come to me.
Murphy USA (MUSA)
Murphy isn’t a name that you hear as often as Shell or BP. But, they operate a lot of gas stations around the U.S. When they popped up on my scanner, their chart made me salivate.
MUSA fits my classic TPS setup. Check out the daily chart.
MUSA daily chart
My TPS setup runs off three elements:
- Trend: The jump in price created a clear bullish trend. However, I love that price stayed up near the highs, consolidating for a while.
- Pattern: Notice how the range for trading keeps tightening. That’s a sign things are about to heat up.
- Squeeze: The red dot indicator at the bottom lets me know that the Bollinger Band indicator moved inside the Keltner Channel indicator.
I got into this trade when the stock moved into my buy zone between the 8-period and 21-period exponential moving averages. Once it breaks the high, I’m looking for it to make it’s way up to the 127.2% Fibonacci extensions.
Luckin Coffee Inc. (LK)
Here’s a beautiful stock that delivers the best of the other two. You get a TPS setup and a massive short-float.
LK coffee caught my eye with a nearly 50% short-float. But the TPS setup drew me in like a succubus.
LK daily chart
You can see the breakout that popped the stock up near $33. It’s held a range that’s narrowed the more time that’s passed.
Like PTON, LK is an extremely volatile stock. I trade it on multiple time frames and with a few different strategies. This one will pay out handsomely once it gets moving. That’s why I scale into this trade every chance I get.
Spread some holiday cheer
Imagine all the presents you could buy with a +100% trade like TSLA…a membership to Weekly Money Multiplieris the gift that keeps on giving.
Check out my free webinar that starts soon where you can learn even more about Weekly Money Multiplier.