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There is a great setup in the works heading into Monday.

It’s very similar to the trade I had in IWM from last week…

*I want to keep the momentum going

*See disclaimer below

One of my favorite stocks, Zoom Video (ZM) reports earnings after the close tomorrow.

And I think there’s a massive opportunity here.

You see, last time the company reported earnings, the stock shot up over 40%!

ZM Daily Chart

But did you notice the +6% gain the day leading into the announcement?

And what about the +4% gain the day after?

I unearthed one of my favorite chart patterns in ZM along with two other fantastic trade ideas.

So if you weren’t excited for this trading week, you will be by the end of this newsletter.

Zoom could go boom!

So what’s got me all excited about ZM?

Let’s look at the chart and find out.

ZM Hourly Chart

This is a great chart because it illustrates several trading ideas all wrapped into one package.

Once ZM bottomed in mid-November, shares created a ‘stairstep’ pattern.

Think of this as a group of bullish patterns stacked on top of each other.

It starts with a sharp move higher, leading into a sideways consolidation.

That precedes the next move higher, and so on and so on.

See the blue curved line underneath the candlesticks? That’s the 30-period moving average.

Notice how shares broke above it, then traded sideways until they hit that line.

They used it as support to make the next push higher.

And where did that take them?

Right into the all-important 200-period moving average (green line).

That means shares closed Friday at the high of the week. Typically, this creates a followthrough the following day and week.

Couple that with the break above all the moving averages and you’ve got a real bullish look to this chart.

You can bet that before the market opens Monday, this will be high up on my list for my Bullseye Trade of the week.

But don’t cut away yet because jobs Friday creates some awesome trade setups.

Jobs data points to strength

Although the weekly jobless claims painted a slowing jobs picture, all that is about to change.

As we hit Q2 of next year, a significant portion of the population will have been inoculated. That has markets bullish on the prospects of recapturing the growth before the pandemic.

We’re already seeing this in one key sector – industrials.

One of my favorite stocks is Caterpillar (CAT).

With the dollar dropping and global demand rising, orders for heavy machinery should pick up.

Shares already hit all-time highs last week, and there’s a sweet setup forming on the hourly chart.

CAT Hourly Chart

Here is another fantastic chart pattern I love to trade.

When you see a stock make a sharp move higher and then consolidate sideways, pay attention.

Do what I did here and draw trendlines (orange lines above) that connect the highs and lows of the candlesticks.

See if they move away from one another, run parallel, or converge.

Notice whether they slope upward.

This is a continuation pattern where I look for price to take a breather before breaking higher.

I see two possibilities here. First, shares spike lower to meet the 200-period moving average early next week. That would be a spot I want to get long CAT.

Second, price continues its sideways drift, allowing the 200-period moving average to work its way higher. This is what I expect to happen.

Think of it like a spring all coiled up. All it wants is a tap on the shoulder to release. And it just so happens that the jobs numbers could be that catalyst.

Now, let me tell you about one last juicy tidbit no one else is sharing.

The big market breakout is coming

Pundits love to tell us how the economy is fragile with weak consumers.

As long as the Fed has our backs, this market is only headed in one direction.

That’s why this could be one of the greatest investment opportunities of this decade.

I already started scooping up companies in my Portfolio Accelerator to not just grow my investments, but ENHANCE their returns.

*Why wouldn’t you want to invest this way?

*See disclaimer below

Don’t regret missing the potential THIS market has to offer.

Sign up now for my Portfolio Accelerator.

Stocks I’m watching this week

ADBE, SHOP, ETSY, NOW, DOCU, AVLR, HUBS, DPZ, HYLN, CGC, TLRY, MJ, RIOT, WORK, WK, DE, AMZN, SFIX, PINS, IWM, QQQ, SPY, SPWR, JKS, TAN, SPOT, TTD, PENN, DKNG, LI, BABA, ECL

This Week’s Calendar

Monday, November 30th

  • 9:45 AM EST – Chicago PMI November
  • 10:00 AM EST – Pending Home Sales October
  • 10:30 AM EST – Dallas Fed Manufacturing November
  • Major Earnings: Adient plc (ADNT), Zoom Video Communications (ZM).

Tuesday, December 1st

  • 7:45 AM EST – ICSC Weekly Retail Sales
  • 10:00 AM EST – October Construction Spending
  • 10:00 AM EST – November ISM Manufacturing PMI
  • 4:30 PM EST – API Weekly Inventory Data
  • Major earnings: Box, Inc (BOX), salesforce.com Inc (CRM), At Home Grp Inc (HOME), Hewlett-Packard Enterprise Co (HPE), NetApp Inc (NTAP), Veeva Systems Inc (VEEV).

Wednesday, December 2nd

  • 7:00 AM EST – MBA Mortgage Applications Data
  • 8:15 AM EST – ADP Employment November
  • 10:30 AM EST – Weekly DOE Inventory Data
  • Major earnings: CrowdStrike Holdings Inc (CRWD), Elastic NV (ESTC), Five Below Inc (FIVE), Okta Inc Cl A (OKTA), PVH Corp. (PVH), Snowflake Inc (SNOW), Synopsys Inc (SNPS), Splunk Inc (SPLK), Sportsman’s Warehouse Hldg (SPWH), Zscaler Inc (ZS).

Thursday, December 3rd

  • 8:30 AM EST – Weekly Jobless & Continuing Claims
  • 10:30 AM EST – Weekly EIA Natural Gas Inventory
  • Major earnings: The AZEK Co Inc (AZEK), Dollar General Corporation (DG), Express Inc (EXPR), Kirkland’s Inc (KIRK), Kroger Co (KR), The Michaels Companies Inc (MIK), Signet Jewelers Ltd (SIG), Cloudera Inc (CLDR), DocuSign Inc (DOCU), Medallia Inc (MDLA), Marvell Tech Grp (MRVL), Ollies Bargain Outlet Hldgs (OLLI), Pagerduty Inc (PD), Smith & Wesson Brands Inc (SWBI), Ulta Beauty Inc (ULTA), Yext Inc (YEXT), Zuora Inc (ZUO).

Friday, December 4th

  • 8:30 AM EST – November Jobs Data
  • 10:00 AM EST – Durable Goods and Factory Orders October
  • 1:00 PM EST – Baker Hughes Rig Count
  • Major earnings: Big Lots Inc (BIG).

 

*Results presented are not typical and may vary from person to person. Please see our Testimonials Disclaimer here: https://ragingbull.com/disclaimer

*RagingBull does NOT track or verify subscribers’ individual trading results and these individual experiences should NOT be understood as typical as or representative. Please see our Testimonials Disclaimer here: https://ragingbull.com/disclaimer

 

Author:
Jeff Bishop

One of the best traders anywhere, over the past 20 years Jeff’s made multi-millions trading stocks, ETFs, and options. He is renowned as an incredible trader with a deep insight and a sensitive pulse on the markets and the economy. Jeff Bishop is CEO and Co-Founder of RagingBull.com.

Even greater than his prowess as a trader is his skill and passion in teaching others how to trade and rake in profits while managing risk.

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