Find The Bottom in The Next 2 Days.

The March Intraday Playbook Class Registration is Here

Yesterday was pretty nasty after gapping higher to see it reverse like it did and you don’t see that a lot but those that read the report know I talked about the key levels on SP500 that mattered if we were going to stage a rally.

A few thoughts this morning after being out sick yesterday missing most of this…..

Don’t Catch a Falling Knife?

You’ve probably heard this. It’s what people who heard other people say it, say. And I’ll tell you what it really means: it means you don’t know what’s going on so instead of figuring it out you use this line to do nothing and miss buying key names trading at discounts.

• Look for basing around key price levels: which we’re likely close to after another day or two of selling

• We’re not at the bottom yet: you need capitulation which we’re likely to get

• Looking for kew names: there are plenty of names coming off these highs that are going to be good adds/new longs

• Look at LEAPS: this is a good way to test longs and I think a lot of people ignore them and not in just situations like these. They allow you to put on risk and to not have to time these bottoms perfectly which is always hard to do.

SP500 Levels: The Key

• Issue 8 of LongVol Report: we talked about $5800 as a key spot, we’re nearly there and below that this market opens up capitulation.

• A Target to Watch: at $5640-$5650 is where we might see capitulation

• Rally: $5950 is resistance still so without that regaining this is bearish

Trump & Crypto Plays

• Crypto Reserve: Trump, Sunday, announced the US Crypto Reserve. Whether you agree or disagree it’s in play and we saw a sharp rally Sunday night.

• Coinbase Long: Coinbase traded to $240 pre-market Monday only to see it reverse and close at $205, nasty work. We are getting into a PTA (what we call it here for buy zones sell zones). I probably pick up some LEAPs this week on this name near there.

• Micro Strategy Long: MSTR near $210-$220 is on my list as well with LEAPs. Not because I believe in the company, I don’t, but because it’s a proxy for bitcoin/crypto rallies.

Trump & Crypto Plays

• Crypto Reserve: Trump, Sunday, announced the US Crypto Reserve. Whether you agree or disagree it’s in play and we saw a sharp rally Sunday night.

• Coinbase Long: Coinbase traded to $240 pre-market Monday only to see it reverse and close at $205, nasty work. We are getting into a PTA (what we call it here for buy zones sell zones). I probably pick up some LEAPs this week on this name near there.

• Micro Strategy Long: MSTR near $210-$220 is on my list as well with LEAPs. Not because I believe in the company, I don’t, but because it’s a proxy for bitcoin/crypto rallies.

Subscribe to our premium content to read the rest.