Tuesday, January 10, 2023

♟ I'm Greenlighting These Trades

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"What I'm looking at is a couple of names, and one was on my weekly watchlist earlier this week."

Nathan Bear, Lead Technical Tactician, Monument Traders Alliance

I've got some trade setups ready to go for you today.

Yesterday the market saw a big breakout.

And today we pulled back a bit.

Does that mean the game is over?

I go over several names I'm looking to move on in today's Trade Talk Tuesdays episode.

Click the image below to see the trades.

Greenlit Trades After a Breakout
 

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In the SPX, we basically had a range break higher on Friday. So far this week, we've been getting a retest - this is normal. Now, if the bulls want to push this higher for a couple of weeks, they need to hold the top end of that previous range. Resistance becomes support on a retest in healthy markets. This market is anything but healthy, but the theory still applies from a technical analysis perspective.

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YOUR ACTION PLAN

So, with that in mind, here are the two plays I'm looking to get into...

Target Hospitality (Nasdaq: TH) - This name was on my weekly watchlist, which went out yesterday morning. Today I'm "greenlighting" this trade and suggesting an option. I want to buy the February 17 $15 calls on a pullback to $14.50-$15.00, and I'll be looking for a move to over $17 - maybe as high as $20.

Target Hospitality

(Click to enlarge)

General Dynamics (NYSE: GD) - This is a new name to the watchlist with a classic TPS setup and a great risk/reward ratio. I want to buy the February 17 $250 calls on a move to $245, stop on a daily close under $243 (very tight risk) and then look for a move higher - over $255 and perhaps to $260 - into earnings. Note that GD reports earnings on January 25... I would NOT hold these options through the earnings report.

General Dynamics

(Click to enlarge)

P.S. If you have any questions about my trades, feel free to contact me at feedback@monumenttradersalliance.com.

P.P.S. If you're looking to see more trades like these in real time, I recommend checking out The War Room. Bryan and Karim are on fire to start 2023... with a 100% win rate on their first 10 trades! Right now they're guaranteeing you'll receive 252 winning trades in your first 12 months of membership.

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