THE STOCK MARKET WILL GO INSANE THIS WEEK

Summary

In this video, the speaker discusses key stock setups and momentum plays, including stocks like Paler, Affirm, Wells Fargo, and Disney. They focus on breakout levels and potential trades based on recent price action. A highlight is a significant trade involving Walgreens (WBA), with large options bought for 2027, signaling bullish sentiment despite the stock's decline. The speaker emphasizes volatility and recommends careful monitoring for both short and long-term investors. They also acknowledge a Discord community member for their trading progress. With earnings reports on the horizon, it's shaping up to be an exciting week for traders.

Takeaways

• 😀 Watch Paler for potential upside if it breaks $66.50 and $67, as recent intraday moves have been strong.
• 😀 AFIRM saw great performance on Friday; a breakout above $57.80 could signal more upside.
• 😀 Wells Fargo (WFC) showed good momentum; keep an eye on the $74.50 level for a potential breakout.
• 😀 Disney (DIS) is volatile right now: a break above $115.20 may lead to further upside, while a drop below $113 signals a pullback.
• 😀 Walgreens (WBA) has a big money trade with $838,000 invested in $2.50 strike call options expiring in 2027, signaling potential bullish sentiment despite its past struggles.
• 😀 Long-term traders may want to average into WBA as it could present an opportunity if it finds support.
• 😀 Big money options can sometimes indicate a shift in sentiment or potential big moves for stocks like WBA, despite its downward trend over the past few years.
• 😀 For momentum plays, focus on stocks that show consistent and strong movement, especially on breakout levels.
• 😀 It’s important to wait for confirmations and breaks at key levels to avoid forcing trades on weak setups.
• 😀 Community engagement is vital in trading; a shout-out was given to Victor G for sharing his successful trading week, which helped boost confidence within the community.
• 😀 The upcoming week looks exciting with a lot of market action, especially with Nvidia’s earnings report on Wednesday.

Q & A

What key resistance level is being observed for Palantir (PLTR) in the script?

The key resistance level for Palantir (PLTR) is $600, which is highlighted as a major obstacle. The trader is also monitoring price action near $66.50 and $67 for potential breakouts.

What is the strategy for trading Palantir (PLTR) if it breaks certain levels?

If Palantir (PLTR) breaks $66.50, the trader is watching for momentum to continue, and if it reaches $67, the focus is on a continuation move. The trader enjoys the momentum from intraday breakouts and is looking for similar setups.

What are the momentum play setups discussed in the script?

The momentum play setups discussed are for Affirm (AFRM), Wells Fargo (WFC), and Disney (DIS). Affirm is watched for a breakout above $57.80, WFC above $74.50, and Disney for both upside and downside moves, depending on breaks at $115.20 and $113.

How does Disney's stock movement affect its trading strategy in the script?

Disney's stock is being watched for both bullish and bearish scenarios. A breakout above $115.20 could lead to upside momentum, while a drop below $113 could signal a pullback, creating opportunities for both directions in its trading strategy.

What is the significance of the $838,000 big money trade in Walgreens (WBA)?

The $838,000 big money trade in Walgreens (WBA) involves buying long-term $2.50 strike call options expiring in 2027. This indicates a bullish stance despite the stock's sharp decline, with the expectation that WBA may see a rebound if it finds support.

Why is Walgreens (WBA) considered a risky trade despite the large options investment?

Walgreens (WBA) is considered a risky trade due to its significant drop from $100 to $8.50 over the past few years, with the stock's fundamentals being weak. However, the options have a long time frame, allowing for more flexibility in case of a recovery.

What potential reward does the Walgreens (WBA) trade offer despite its risk?

The Walgreens (WBA) trade offers a good reward-to-risk ratio, as the long-term options (with a 2027 expiration) allow time for the stock to recover, especially if it finds support. Despite the risk, there's potential for a strong rebound.

How does the trader suggest handling the Walgreens (WBA) setup if considering a long-term investment?

The trader suggests averaging into the Walgreens (WBA) position over time, especially if the stock continues to fall, which could allow for a better entry price and reduce risk as the stock finds support and potentially rebounds.

What is the significance of Nvidia's earnings report in the script?

Nvidia's earnings report is expected to create significant market action, with the trader noting it as a key event for the upcoming week. The report could lead to potential opportunities depending on how the stock moves in response.

What is the role of the Stocked Up community in the trader's strategy?

The Stocked Up community plays a role in providing support, motivation, and insights. The trader gives a shout-out to a community member, Victor G., who had a successful trading week, highlighting the importance of the community in boosting confidence and trading success.