Sometimes you get a gut feeling that you can’t explain. It hits you in the pit of your stomach, but you don’t know where it came from.
That happened to me Friday.
Check out my first trading from that morning:
Then it hit me. A few hours later… I closed out most of my portfolio.
I could be wrong and it may be nothing…
But, I’ve learned to trust my well-honed instincts.
And my instincts told me it’s time to lighten up.
Only time will tell if that was the right decision.
However, there are a few stocks that I’m targeting for potential trades come Monday…
You can find them right below…
3 Trades For A Volatile Market
While I traded Canopy Growth (CGC) a few times last week, I never got a huge winner. But, as I started watching a similar stock – Tilray – I realized it has a lot of long-term potential.
Let’s take a look at the 130-minute chart to start.
TLRY 130-minute Chart
I love the look of this stock. It almost fits right into my TPS setup. As a quick review, that means it contains three key elements:
Trend – While the stock had taken a larger decline last year, it pushed hard off the base it formed. That created a nice uptrend.
Pattern – Friday’s down move came close to breaking the pattern. However, I still like this consolidation flag.
Squeeze – So far, I haven’t seen the squeeze on the daily chart. However, there’s a nice one forming on the 130-minute chart. This occurs when the Bollinger Bands move inside the Keltner Channel. You can see it from the red dots in the bottom indicator.
Here’s the problem. Friday’s market action broke the chart pattern. The triangle formation broke with candle closes below the trendline.
However, I still think there’s a play. Let’s back out to the daily chart.
TLRY Daily Chart
The daily chart still has a pattern and trend. However, I need the squeeze to form before I want to hop on board.
So, this is one to keep an eye on. Once the Bollinger Bands start trading inside the Keltner Channel, then I’ll be looking at a potential entry.
What I do like about this stock is its independence. These marijuana stocks tend to trade on their own rather than with the broader market. That gives me the protection I want for a potential downturn.
Twilio is a stock that I’m cautiously optimistic about. You can again find my classic TPS setup here as well… and this one looks primed to go.
TWLO 130-Minute Chart
Although this stock has run hard, it’s got a great look to it. There’s a nice uptrend, clean pattern, and a squeeze with momentum turning upwards.
However, there’s a catch with this one. Earnings come up on February 5th. I don’t like to necessarily trade through earnings. Given this is a 130-minute chart, there is a good chance it plays out before earnings.
That’s the trade-off here. It all comes down to timing.
20 Yr+ Bonds ETF (TLT)
This play is a great edition to protect against volatility. Bonds normally trade opposite of stocks. Investors like to park money in treasuries as a safety trade. So when stocks drop, bonds tend to rise. When stocks rise, bonds tend to drop.
Now, let’s look at the weekly chart for bonds here.
TLT Weekly Chart
Anything look familiar here? This is my TPS setup but on a weekly chart. That’s what I love about this system. It works on any time-frame.
Because this is a weekly chart, it can take months to play out. However, it fits within a bigger macroeconomic picture and acts as a great hedge against market fallout.
My only concern here is that the trade may have left the station. Last week’s market action may have been the breakout move. Right now, it’s not at a spot where I want to enter the trade necessarily. But, if I get a pullback to the 8-period or 21-period exponential moving average, then you can bet I’ll be sizing this up.
Want Even More Trades
Last week turned out to be a busy one for me. I found lots of great trades every day. Starting fresh this week, I see a lot of potential for even more.
So how do I find these people trades – TPS setups.
In my upcoming webinar, I talk about how I created my TPS system that turned my $38,000 account into over $2,000,000 in just two years, as well as finding these trades every day.