Let's Trade Derek Hutson

Announcement: I will be gone on a trip to Italy for 2 weeks starting tomorrow, so no shows until then, best of luck!

In the meantime looks like today the markets are trying to bounce after a week of sliding. Will want to wait for a little more confirmation though, perhaps in the form of a shallow pullback.

Best stocks I am watching with potential are NVDA, AFRM, and MU. Again, always important to wait for confirmation of a good pattern before jumping in.

Best of luck to you over the next couple weeks!

Week starts with a slight day in the red, DOW is the biggest loser ay .75%, however the big loser on the day is crypto with a massive parabolic move down, bitcoin dropping over 10% in the course of an hour in the morning, only to recover about 50% of that drop. Interesting shakeout, now could be a good time to bargain shop on some cryptos.

PII also shook me out after what had a ton of potential on a good looking move today, CRUS was a less dramatic stop out today to end the day -2R. That is the way it goes sometimes, may be sitting on hands quite a bit this month....

All 3 markets start flat in pre market but immediately start sliding down to start the day, likely due to a jobs report that showed new jobs added being way under predicted for August. Likely due to that being the last month of unemployment benefits, my prediction is that we will see a bounce back of jobs for September as people are forced to go back to work.

Since markets are sliding we of course want to look for stocks that have good relative strength to the market. Nothing super impressive so far, but a couple on my list are PII, CRUS, DXC, and ZTO.

Bitcoin and crypto have an overnight slide after a nice weekend of gains, we will see if the beginning of El Salvador using Bitcoin as legal currency today has any effect on price or volume movement. If it does, it will be nothing substantial but a little boost to get some momentum going would be nice.

Markets get whipped around this week all over the place, no idea which way they will start next week. We will need to wait and see what the pre market charts look like...

Bitcoin and Crypto end the week sliding down just a hair but for the most part holding onto some significant gains made over the week. Remember that crypto never sleeps and the market is open 24/7 so we could potentially see some more price action movement over the weekend.

Took 2 trades today, one worked one didn't which will have me end the week roughly break even. Both buy setups, NVDA worked out and PD did not.

We see a huge swing both ways in the pre market chart, with a bit of a rise in the volatility indicator. Could go either way today so may be a good idea to wait a bit for confirmation of direction either way, or find some stocks with relative strength.

Bitcoin, Ethereum and the rest of the crypto market making big moves over night, could be a good play to jump in and trade those markets today.

Buy setups and breakouts are my 2 favorite patterns to trade. Here are the criteria for each:


Buy setup requirements: Stage 2 uptrend or double bottom retest (W), 2 or more lower highs, less than 50% overlap on pullback bars, roughly 50% retracement
Breakout requirements: Narrow/tight consolidation, resting volume in core of consolidation, at or near high of day, tradeable void above

SPY and the QQQ finish in the green today, but only barely, to start September which as we mentioned this morning is historically the most underwhelming month of them all. All it will take is one or two FUD catalysts to start a slide, we will see if that happens, although there is nothing in the foreseeable future that could cause that.

Both trades stopped me out today on SAVA and SKLZ, looked like nice entries but that is the way it goes sometimes. This is why as traders we take protective stop losses so we can live to fight another day.

Bitcoin, Ethereum and the crypto market have a huge lunch time rally, will be interesting to see if the momentum can continue up as there is a good amount of tradeable void to the upside for these cryptos still.