Trade Ideas LLC

Real-time Market Intelligence. Leader in Derived Data Analytics. Here we discuss Trades of the Week, Daily Trade Recaps, Ideal Patterns, and Taming Egos.

[tradeideas]

The First 30 Days

January 1, 2016 I joined the Trade ideas team to help them with the growth that is occurring with new subscribers who are discovering the software for the first time. Since I am user #3 in the system, it seemed only natural to jump on board and help since I have been associates with this group since 2003.

Like most traders, I get stuck in my ways and only use a portion of the tools that Trade Ideas was offering. Then one day in late 2015, Dan Mirkin, the CEO pulled me aside and said “Steve, you will not believe what we have created here. We now have the ability to use artificial intelligence that can optimize trading strategies and give trader’s a true edge”

He told me to just pull up the A.I. window (code named “Holly”) and watch for a month. So I did, and I was immediately impressed beyond anything I had ever seen.  Trade Ideas has always been able to innovate and execute but this time I could tell this was going to be a game changer.

Casinos don’t let you count cards because it gives you the edge. Holly the A.I. engine finally gives traders an edge when it comes to discovering new trade opportunities with the wind at your back. It’s like having a professional trader that has zero emotions sitting next to you allowing you to watch and learn. There has been many times where I find myself using Holly for short term market directions. Seeing resistance areas met with short selling strategies by the unemotional robot sitting next to me has been an invaluable tool so far.

The developers at Trade Ideas continue to refine the user experience with this new technology and I am glad to be along for the ride on cutting edge fintech innovations here. - Steve Gomez

[tradeideas]

Watching the artificial intelligence engine do it’s thing in #TradeIdeas Pro. http://bit.ly/1288TODAY 

[tradeideas]

You Have Many Opportunities to Play Disney Like This

It’s a fine time to be a comic book fan. My childhood superheroes make the leap from dusty pages in my collection to the big screen with this weekend’s epic release of Avengers: Age of Ultron. A more responsible reboot of the Fantastic Four is also underway. This is on top of some great Marvel films over the past years in X-Men, Spiderman, and Captain America. 

The small screen participates too. Have you seen NetFlix’s Daredevil? It’s damn awesome and smartly done. Stop, drop, and go see it.

We all know Marvel is part of the Disney universe. You might know that the original Avengers, released in 2012, grossed $623 million domestically and $1.5 billion worldwide for Marvel Studios, owned by Disney. Since then, Disney's stock price has rallied over 160%. 

Yes, gargantuan results for the Ultron movie are priced into Disney stock. The movie will make waves all throughout the summer across the globe.

Yes, your head will nod when I tell you that just as the embers die out for the Avengers in theaters, there will only be a few weeks before the thigh-slapping, yeehaw excitement of hyperspace and the start of the next Star Wars trilogy in December. But really, Star Wars and Marvel both now part of Disney? It’s rather astonishing.

Read Seeking Alpha’s in depth article for all the Avenger projections. I’m just telling you that there isn’t enough hype to capture what will be a truly joyous movie going experience in 2015. Start talking about Frozen 2 and Indiana Jone reboots and it’s easy to see more box office records smashed. SeekingAlpha further reports that the studio has already ambitiously announced 11 more films to be released over the next five years: Ant-Man (2015), Captain America: Civil War (2016), Doctor Strange (2016), Guardians of the Galaxy 2 (2017), Thor: Ragnarok (2017), Avengers: Infinity War Part 1 (2018), Black Panther (2018), Captain Marvel (2018), Avengers: Infinity War Part 2 (2019), Inhumans (2019). 

I am in Disney Oct 16 ‘15 $115 Call options and looking to exit half the position after opening weekend results and the rest a few weeks later when noise of Star Wars starts up or a newer version of the trailer is released. The beauty is that the calendar above of movie releases will likely make Disney a frequent stock or option to ride.

Hand me the popocorn!

[tradeideas]

Profit from the Opening 30 Minute Range Break

Voltari Corp (VLTC)  I have featured this stock twice in the past and today, it triggered on my favorite strategy – the Opening 30 Minute Range Break.  The trigger price came at $9.59 and I called the trade at $9.71 and took profits at $10.27 and $10.17.   I will watch VLTC for the next few days because if you look at the daily chart, the pullback may be over and there is a nice gap to fill.

[tradeideas]

Stocks falling rapidly but have potential to reverse

Acadia Healthcare Co (ACHC)  Today’s trade of the week required a lot of attention in order to find a suitable entry.  I was alerted to ACHC from my Turnaround strategy which shows stocks that are falling rapidly but have the potential to reverse.  The initial alert came at $66.76 but the spread was terrible and I couldn’t bring myself to take the trade.  My disappointment grew as the stock bounced over $2.00 without me – but finally the spread shrunk to a manageable 6 cents and I called the trade at $69.52.  In 2 minutes I was out of the trade at $71.31 for a profit of $1.79!

[tradeideas]

How Trading ETFs Can Keep You Out of Trouble

Proshares Ultra Short Nasdaq Biotechnology (BIS) – Today’s trade of the day was not actually a stock but an ETF. Because I like to trade Biotech stocks, I always have to keep an eye on IBB, the ETF that tracks the sector. The IBB had a big decline yesterday and started off very weak today. So I did want to participate in the weakness but not with an individual stock. I could have shorted IBB but I decided to go long the inverse which is BIS. If your account does not allow you to short sell, this is a good way to effectively short by going long the inverse ETF. I called the trade at $34.51 and exited at $34.82 and $34.61.

[tradeideas]

This Repeating Pattern in the Market Proves You Can’t Leave Home Without It

Autohome Inc (ATHM) – My favorite strategy is the break of the 30 Minute Opening Range – and I was alerted to ATHM on a slight variation of it – the 15 Minute Opening Range break. The 15 Minute is more risky than the 30 Minute in that it has had less time to “prove” itself but the flip side is that the successful alerts usually can run more. And that is exactly what ATHM did. The alert came at $55.04 and I made the call at $55.09. Under 20 minutes later, I was out of the trade, selling at $55.39, $55.80 and $56.29, the latter for $1.20 per share profit.

[stocktwits]

The Huge Fibonacci Line That Has Everyone’s Attention

This share from AllStarCharts​ was one of the most viewed charts on StockTwits last week. If you’re a stock market technician or quant you’ll quickly understand why – it shows an epic Fibonacci line. One that started at the bottom of the Global Financial Crisis and rises to the current all-time highs.

The S&P 500 is now approaching its 161.8% retracement since the market bottomed in 2009. Here’s the chart:

Does anyone care that we’re running into the 161.8% Fibonacci extension from the 2007-2009 decline in S&P500? $SPY

— J.C. Parets (@allstarcharts) Apr. 24 at 02:34 PM

[tradeideas]

You Only Live Twice. Then Repeat.

Cytosorbents Corp (CTSO)  I was alerted to this stock from one of my favorite setups – the break of the Opening 30 Minute range.  The alert came at $7.73 and initially, it went too quickly for me to take the trade, but luckily, it pulled back and gave me a second opportunity.  I called the trade at $7.80 and sold in 2 increments: at $8.20 and $8.05.  On a day that I found quite choppy, I was glad to find this trade reasonably early so that I didn’t have to fall into the trap of taking some marginal trades.

[tradeideas]

When A Trade of the Week Creates a Trade of the Day

Viggle Inc (VGGL) – Today’s trade of the day is a bit of a departure from my normal trades of the day. Early each week Trade Ideas issues its Trade of the Week (visit the site to get your copy) and in the latest installment, it reported on VGGL. VGGL stock exhibits similarities to the hottest stock over the last 3 weeks - VLTC - a stock that I featured in this Tumblr blog twice already. I entered the trade yesterday at $2.72 and sold some today at $3.26. I will continue to hold unless it breaks down through $3.00.

[tradeideas]

Ready for the Trading Day? Unlikely Unless You’re Doing This

Advaxis Inc (ADXS) – This stock came up on a scan I do after market to find stocks that might be interesting the next day. What I am looking for are stocks that have had an abnormal volume day and that are up at least 5% for the day. Then I check the daily chart for support and resistance levels and ADXS looked to be breaking out from a consolidation area and was poised to challenge a recent high. ADXS is in the Biotechnology sector which has made a great recovery from its mini-crash of several weeks ago. It was up a little bit in the pre-market so I started watching it right at the open for any continuation. On the second break of the whole number, I called the trade at $23.10 and sold at $23.34 and $23.78.

[stocktwits]

We love this share from Persic Sinisa, a trader and CMT. This picture shows 15 of the most common candles in technical analysis and how they look. Make sure you save this! It’s a great reference. #charts #technicalanalysis #trading #stocks #stocktwits

[tradeideas]

Here's How to Catch a Lam on a Bounce

Lam Research (LRCX) – This stock was strong out of the gate this morning based on a good earnings report. However, it gave up a good portion of its gains in the first hour so I started watching it closely for a bounce play. When I saw that three 5 minute candles bounced off the same price point, I felt that the bottom had been put in and called the trade at $77.14. I sold in two stages: $74.70 and $74.73 for a total trade time of about 25 minutes.

[mikebellafiore]

Hi Mike,

Just finished reading The Playbook (after One Good Trade earlier) and felt obligated to send a thank you note. I really appreciate you offering this information out in the form of a book unlike anyone else really does in trading! It helped me build even more on my base trading...

[tradeideas]

The Ultimate Path to a Great Trade: Nymox Pharm’s Monster Volume Surge

Nymox Pharmaceutical (NYMX) – An abnormal volume alert signified that something was happening with NYMX. As the volume was pouring in, I called the trade at $1.44 and exited at $1.56, $1.70 and $1.62 for a great percentage gain. NYMX had some monster days at the beginning of April but was in a 10 day pullback until today’s surge. Based on that, I will continue to watch the stock for any sort of continuation.

[tradeideas]

The Pacira Pharm Pattern: What A 12 Minute Hero Looks Like

Pacira Pharmaceuticals (PCRX) This company was down huge in the pre-market on news that it had received a subpoena from the Justice Department “for access to documents pertaining to the marketing and promotional practices for its flagship pain medication Exparel.” Thank you, sir, I’ll have another.

Never a good thing. However the event provides us an opportunity to watch for a potential reversal trade. The clue that the stock might be turning was a big tail on the 5 minute candle at 12:45pm EDT. I made the call at $81.19, quickly took some profit at $81.56, weathered some price gyrations and then sold the balance at $82.21 and $82.40. All in all, a nice profit for 12 minutes of work.

[parislemon]

"That’s why this thing is going to fail miserably."

Melissa Leon speaking with Death Cab for Cutie frontman Ben Gibbard:

In the music world, another issue has emerged regarding artists’ compensation from streaming platforms. Jay Z recently unveiled plans for his own subscription streaming service, Tidal, which aims to “forever change the course of music history” by offering high-fidelity audio to customers for up to $20 a month, higher royalty rates for musicians—and a share of the company for an endless parade of high-profile artists like Rihanna, Kanye West, Madonna, Jack White, Daft Punk, Arcade Fire and Beyoncé (none of whom seem strapped for cash). Gibbard says the service is dead on arrival.

“If I had been Jay Z, I would have brought out ten artists that were underground or independent and said, ‘These are the people who are struggling to make a living in today’s music industry. Whereas this competitor streaming site pays this person 15 cents for X amount of streams, that same amount of streams on my site, on Tidal, will pay that artist this much,’” Gibbard says. “I think they totally blew it by bringing out a bunch of millionaires and billionaires and propping them up onstage and then having them all complain about not being paid.”

“There was a wonderful opportunity squandered to highlight what this service would mean for artists who are struggling and to make a plea to people’s hearts and pocketbooks to pay a little more for this service that was going to pay these artists a more reasonable streaming rate,” he continues. “And they didn’t do it. That’s why this thing is going to fail miserably.”

Amen.

[philpearlman-blog]

“That’s why this thing is going to fail miserably.”

Nailed it.