Wednesday, December 18, 2024

S.A.M. AI Just Flagged This ROKU Setup 🎯

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"How to Manage Risk Through Year-End"

Nate Bear, Lead Technical Tactician, Monument Traders Alliance

Nate Bear

Hey Gang,

The Fed's kicking off their big meeting today, and everyone's holding their breath for tomorrow's announcement.

It's funny - every time we get close to these Fed meetings, I see traders freeze up like deer in headlights.

But you know what?

While others are paralyzed by uncertainty, we're going to do what we always do - follow the momentum and profit from clear setups.

That's exactly what I've spotted in Roku (ROKU) right now.

This stock has been quietly setting up one of the most beautiful patterns I've seen in weeks, and my S.A.M. AI Scanner is flashing multiple signals that tell me something big could be brewing.

Before I show you exactly why I'm excited about this setup, let me be clear - I'm not trying to predict what Jerome Powell will say tomorrow.

That's a fool's game.

Instead, I'm focused on a proven pattern that's worked time and time again, regardless of what's happening with interest rates.

My first step is to create a game plan for the week.

Market Outlook

Tomorrow's interest rate announcement is really the last major data point before the end of the year.

Markets priced in one quarter point cut based on the CME FedWatch tool. Futures imply another quarter-point cut again in the springtime. But they aren't sure after that.

While I can't speak to macroeconomics all that well, I can tell you that indices like the Nasdaq 100 are in full bull mode, with stocks like Tesla going parabolic.

I don't see that changing before next year, even if the Fed takes some of the wind out of the sails.

See, as we approach the end of the year, volume begins to evaporate. Traders begin to take vacations because there isn't any data or earnings to process.

So, outside of some initial positioning tomorrow, I expect the market will tell us whether it wants to float higher, lower, or just chop sideways.

We also see whacky stuff start to happen at year's end. The VIX and S&P 500 can rise or fall together. Stocks come up short or blast through support and resistance levels and other kinds of irregularities become common.

That's why it's critical to be selective with your setups and understand there will be fewer trades than usual.

But the trades you do find can offer some amazing profit potential.

Why I Love This ROKU Setup

Take a look at this chart and you'll see why my S.A.M. AI Scanner is lighting up right now.

 

ROKU has been in a beautiful uptrend since August, steadily climbing higher with strong momentum. But what's really got me excited is the recent price action.

The stock has formed a perfect symmetrical triangle pattern right at the highs. We've got a series of lower highs and higher lows, creating compression in the price - exactly what we want to see before a big move.

And check out those indicators at the bottom of the chart. The squeeze is setting up beautifully, with momentum starting to curl higher even as price consolidates.

This is a classic TPS setup that's hitting all three of my criteria, which are labeled on the chart:

  1. Trend: Clear upward trajectory since August
  2. Pattern: Tight triangle consolidation with converging trend lines
  3. Squeeze: Our momentum indicators are coiling up for a potential explosive move

The best part is this stock had four different A+ setups on the 10, 15, 60, and 78-minute timeframes in addition to the one forming on the 130-minute chart.

 

With the stock sitting right at $82, a break above $85 could trigger a significant move higher. The measured move target from this pattern suggests we could see ROKU run to $90 or higher.

Remember though - we're keeping position sizes manageable heading into the Fed announcement. But this setup is too good to ignore completely.

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Ready to Trade These High-Probability Setups?

Finding setups like ROKU isn't easy - especially when you need to time both the technical pattern and navigate major market events like Fed meetings.

That's exactly why I combined my S.A.M. AI Scanner with Profit Surge Trader.

Every Monday at noon EST, I host a LIVE session where I:

  • Break down opportunities like ROKU before they make their big moves
  • Share real-time trade alerts when stocks hit my key entry levels
  • Show you how my S.A.M. AI Scanner spots these perfect setups
  • Answer your questions about managing trades through volatile markets

The power lies in the combination: The S.A.M. AI Scanner finds the strongest setups, while our LIVE sessions walk you through exactly how to trade them. No more guessing about entries, exits, or position sizing.

Ready to join me and start catching these momentum moves yourself?

Click here to secure your spot for Monday's Profit Surge Trader LIVE session.

Let's navigate these markets together.

— Nate Bear

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