What You Need to Know

Hey…it’s Jay Simon, and here’s what you need to know about the markets today.

Sorry for missing my daily email yesterday. I wasn’t feeling well in the morning, and needed a little extra rest. Still managed to have a good day trading, and I hope you all did as well.

We have pending home sales today at 10, but the big news will be at 2:00 p.m. EST with the Federal Funds Rate and FOMC Statement being released. I would be flat on positions before that release!

Trade of the Day: 2 Ways

I’m once again watching NVDA in premarket. Both NVDA and AMD are gapping up due to Biden’s announcement that he will exempt some allies from the rule govering chip exports to China. Either one could be a good play today.

For Calls:

To buy Calls we will want to see price hold above VWAP after market open, and then begin to push through resistance levels. Only buy on pullbacks.

Resistance levels:

• 111.21 (premarket high)

• 111.33 (hourly chart)

• 112.00 (round number and congestion area from hourly)

For Puts:

To buy Puts we will want to see price move AND stay below VWAP.

Support levels:

• VWAP

• 110.24 (weekly level)

• 108.00 (hourly chart)

Profit Pointers

Every email I try to impart one market insight that will help you develop into a better trader. Here is today’s golden nugget…

ADMIT WHEN YOU ARE WRONG.

There are two and only two reasons people kill their accounts.

1. Taking on excessive risk

2. Refusing to admit being wrong

The top 10% of traders in the world still having losing trades. Everyone has losing trades. Get that through your head. It’s okay to have a losing trade.

It’s even okay to make a bad decision, and enter a bad trade. You can survive those things, but you cannot survive an inability to admit when you are in a bad trade.

Be okay with being wrong. Make quick decisions. Don’t let yourself get hurt by one bad trade.