I don’t know about you, but I am pumped for earning season.
It’s when companies tell Wall Street how they’re doing— and given their unpredictable nature—it should create some much-needed volatility and a slew of trading opportunities.
This week’s top trade ideas are ripe for the taking.
But a word of caution—stay nimble and focus on risk management.
Let’s get started!
Entergy Corp (ETR)
This was a chart that I had been watching alongside Weekly Money Multiplier Members this week that I finally got my fill.
Here’s the chart I put out to members explaining the trade setup.
ETR Daily Chart
This chart follows my classic TPS setup. As a refresher, the TPS setup contains three components:
- A clearly defined TREND. You can see the upward movement as the chart moves from left to right.
- An established chart PATTERN. The orange lines highlight a common triangle consolidation pattern. This is formed by connecting the lowest swing points for the lower trendline and the highest swing points for the upper trendline.
- Consolidation that leads to a SQUEEZE. This is indicated by the red dots at the bottom, which occurs when the Bollinger Bands trade inside of the Keltner Channel.
I would say that 90% of my setups are TPS. Over the years I honed this strategy, and it works for me in any market. However, I’ve learned to make some adaptations as needed.
In today’s market, I want to be a little more conservative at times. That means I usually wait for a lower entry than normal to limit my risk on the trade. Plus, I can always scale out earlier for partial profits.
ETR should play out by exceeding the recent highs. However, this could take several weeks, so it requires some patience. I am currently playing this through call options.
Boston Scientific (BSX)
Healthcare stocks didn’t perform well last year. Recently, they’ve recently shown a lot of strength.
As usual, I’m approaching this trade with my TPS setup. However, I’m making some adjustments here.
Let’s start by taking a look at the chart.
BSX 78-Minute Chart
First, you’re probably asking why I used a 78-minute chart. Well, there are 390 minutes in a trading day. Divide 78 into 390 and see what you get…
Now, the dots at the bottom show green, which means I don’t have a squeeze yet. However, it will probably be only a few more days before one occurs. With a nice pattern formed already, and an obvious uptrend, this represents some sweet TPS potential.
What’s neat is you can see how the last TPS squeeze played out. When the dots turned from red to green, the stock fired off higher. I expect this to happen again, and hopefully push past the all-time highs.
Would you be surprised if I told you my last pick was another TPS setup?
This last trade might be a little trickier than the last two. Let me explain why. I want to start with the 130-minute chart.
PPL 130-Minute Chart
Again, if you’re like ‘why 130-minutes’ – divide 390 by 130…
Now, this chart has the right trend and consolidation pattern as well as a squeeze. However, you can see that we’ve had mini squeezes that fired before this that didn’t really do much. The last squeeze that really did anything notable was almost a month ago.
However, I can mitigate my risk here. When a pattern is broken the trade is over. So, the lower orange trendline is right near the purple line which is formed by the Bollinger Band. Notice how price generally sits within the Bollinger Band going all the way back. It only tends to pop out of it when it’s starting a bigger move.
So, I can enter the trade closer to the purple Bollinger Band to limit my risk on the trade. Then, if it pops up to the upper end, I can at least take a portion off and lock in some profit on the trade.
This is why I always advocate for scaling in and out of a trade.
How did I come up with my TPS setup?
It wasn’t overnight, that I can tell you. Learning and creating a style that is your own takes time, practice, and patience. You need to journal your trades and pay attention to how they perform in different environments.
If you want to learn more, I have a presentation coming up… it’s free to register… and well worth your time.
You’ll learn exactly how I went through the journey that took me from $38,000 to over $2,000,000 in two years.