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♟ Playing the Pullback With 2 Trades

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"I would not be surprised if the SPX goes sideways over these next few weeks."

Nathan Bear, Lead Technical Tactician, Monument Traders Alliance

In January we saw a nice rally in the SPX.

Now we're experiencing a pullback. But there's still plenty of trade action to be had.

I go over two potential plays in today's video.

You won't want to miss this one.

Click the image below to watch.

The TPS Setup and a Short Squeeze Play
 

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YOUR ACTION PLAN

First Solar (Nasdaq: FSLR) has a great "standard" TPS setup. We have a name near 52-week highs with a strong trend, a great pattern and the start of a squeeze. It has earnings coming up on February 23, and I'm looking to get long for a run into those earnings. I'd like to buy the February 24 $170 or $175 calls when the price of FSLR is around $168, and I'll look for a new high into earnings.

First Solar Chart

(Click to enlarge)

The second name is Beyond Meat (Nasdaq: BYND). This is a name without a TPS-style setup, but it has nearly 40% short float and it announces earnings soon. My plan is to use the earnings as a catalyst for a short squeeze. I'm looking to buy the BYND February 24 $20 calls when the price of BYND is near $18. This is an "if/then" trade - if BYND can hold the $18 level, then I want to be long looking for a run into earnings. If BYND cannot hold this $18 level, then I want to close the trade and look elsewhere.

Beyond Meat Chart

(Click to enlarge)

If you're looking to get more trades, I recommend checking out The War Room. Bryan and Karim are off to a hot start in 2023, boasting a 100% win rate on nine trades last week and an 86% win rate overall. Right now they're guaranteeing members will receive 252 winning trades in their first 12 months.

Click here to join The War Room.

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TESTIMONIAL TUESDAY

"I closed the [AI] 2 Shares/Contracts I opened at $3.90 for $6.00 [in two trading days]. Thanks Bryan for a 54% winner to start the week."
- Chris F.

"In [TSLA puts] at $.90 out at $.65 for 38% [in 42 trading days]. Thanks Karim."
- MargeCT

 

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