I called the bottom in the market on Tuesday as the mainstream media was all obsessed with the dreaded DEATH CROSS. That was the exact bottom, and the SPY had a massive move up since. You can read more about that HERE.
Last week’s Bullseye pick also worked out great, as I’ve come to know over the years, “There’s always a Bull Market somewhere”.
Here’s how the stock traded after the pick was sent out:
The market was down a lot the previous week, but ZIM was showing relative strength, moving higher. I try to find the right stock that will be a winner, no matter what the market does. I’m looking to be in the right sector, at the right time, and finding the right stock there.
These types of stocks can be winners regardless of what the market does, that’s exactly what I’m looking for! And as the market turned, ZIM continued even higher!
Sometimes we keep trying to play the same tech stocks, with the same trades over and over, hoping they’re going to work. If we look at different sectors and expand our horizons, and look at what is hot. Is it fertilizer stocks, gold or oil, or commodities, is it International? If all you’ve been looking at is tech, well, you probably haven’t been doing too well! You might catch a bounce once in a while, but this year has been rough! There’s other stuff out there than high-growth tech stocks!
I bet most people don’t trade shipping companies! I usually don’t because they’re boring! But right now, they’re in play! In this environment, it’s a very good trade. It’s not that its a very good company or stock, but right now, to me, it’s a really good trade idea. I look at the price actions and search for the strongest stocks, in the strongest sectors!
This can be a much better strategy than always trying to catch bounces or getting cute and saying I’m just going to buy puts because the market’s going down! Maybe you’re right, and maybe you’re wrong, those puts are super expensive, and if you think it’s just as easy as buying puts in a bear market, I’ve got a few things coming for ya. It’s just not that easy! The markets are so choppy in bear markets, it’s really hard to hold a sizeable position because it’s so volatile! Look at the strongest sectors, look at the strongest stocks in those sectors that is typically a winning formula!
My job is to identify the best stocks in the best sectors. I did that, ZIM was up when the rest of the market was down. Unfortunately, I didn’t get a fill on my orders, but that’s life, that’s trading. I don’t worry about FOMO and don’t chase stocks!
ZIM is a great-looking chart. In fact, it’s been one of the best IPOs over the last year. I challenge you to find a better-looking IPO, this has been one of the best trades over the last 12 months in the entire market! This year it has continued to crank higher, and I love the stock!
So Here Is My trading plan sent to subscribers:
ZIM is one of the strongest stocks in the market right now and the chart is confirming this viewpoint.
The bulls are in full control here as the ascending triangle is broken out to the upside, showing the continued momentum by the bulls.
And as the bulls continue to buy at every drop, how far can it go?
Since ZIM is at all-time highs, we need to use a different set of technical analysis to understand where the stock might be running next.
Using a Fib Extension tool, you can see that ZIM has broken the 100% level from the prior pivots, and is running towards the 261.8% Fib level near $89.
Another stop for the bulls once that is broken is the 361% Fib level near $107.43, but that is a very long way between levels.
While the market is so volatile right now, it is especially important that as a trader you respect and honor all stops that you have in place.
I don’t want to be a buyer right now, but I do think the QQQ’s might start to rally as we approach the lower support levels this week, but only if they are able to hold the $340 level.
My Trade Plan:
What did these calls do?
In fact, both of my targets were cut through and the stock ran all the way up to the 261% Fib Retracement on the daily chart!
And the call options could have generated well over 250% returns if purchased near the entry price and exited near the top!
What an exciting move!
I didn’t get an entry, but the trade idea worked incredibly well. And I’ve already Identified my next Bullseye play, which was sent to subscribers this morning!