Intraday Trading
"Discover the SHOCKING TRUTH of how 
 A Part time trader who has been 
losing for years"
And Who Initially Refuses To Believe 
The Live Trades Shown In This Trading Video
Starts Using the secret trading formula and 
 Now Successfully trades full time! 
or Forever Regret Not Knowing!
So many bulls out there make so little money. Welcome to the 13 Market Moves weekend edition, where we help dedicated traders go to the next level. 

n this video, we're going to talk about the myth that traders make money in the bull market by being bullish. What the hell did I just say? Damn Leonardo you just said that? 

Damn right I said that, because that's exactly what I meant y'all. Guys, this is going to be an incredibly important video if you are trying to take your trading game to the next level. We had a phenomenal week here at 13 Market Moves. 

If you haven't doubled or tripled your account this week, guys this video is definitely for you, if you are trying to improve as a day trader or a swing trader. 

With that said, if you look at the markets simply from the perspective of being bullish or bearish without really getting an in-depth understanding, and how to actually put individual trades and individual stocks together.
Specifically intraday, knowing you exits, knowing your entries. You're missing on some incredible gains in... 

Guys, my mission is not for this channel to get a million subscribers. I don't care about that. What I do care, is about helping a handful of guys achieve some phenomenal results. 

By the end of this video, you will have a clear understanding. Just because somebody says and maintains a bullish perspective of the market, it does not actually mean that they are making money by being bullish. I know it sounds shocking, but I'm going to show you the details that will reveal to you the absolute truth about day trading this market. 

Now, you will make the most use out of this video, guys, if you're an active trader. If you're a long-term investor, it's highly desirable you finish watching this video till the end to understand some specifics and details that can also help you out.
You will make the most benefit out of this video if you are an active trader, specifically if you're trading weekly options. We're going to give you some specific recommendations of what you can do starting today, tomorrow, when the markets open, Monday, Tuesday, that could help you take your trading game to the next level. 

To extract the most value out of this video, I hope that you're not brand new. They have some basic understanding of how to make money when stocks drop, how to buy put options and things like that. 

Hopefully, you've had a chance to get acquainted with the terminology used within our channel, specifically pertaining to 13 Market Moves, chart divergences, pattern recognition and so on. Now if you are brand new it's fine, I would just highly recommend that you go and watch the last 500 videos that we've posted on this channel on this subject.
The purpose of this video guys is to help you understand your entries better, and how to adjust your strikes as you're trading intraday, specifically going into Thursday and Friday. If you really want to learn guys finish watching this video until the very end, and do take notes. 

I'm shocked how many guys actually get on the phone with me like, “Leonardo, I want to trade like you man, I want to do these trades 4K to 60K.” Then I find out most of these guys they don't even finish the video. 

They only watch it to like minute three or four. Guys, there's no shortcuts. If you want to do this right, you got to use every moment, every opportunity to get better. 

Just like pretty much with everything else in life. You want to get really good at something, you got to go the extra mile.  
You got to put in the hours, you got to put in the work. This video is designed for those of you that instead of doing a bunch of stuff out there this weekend, you're actually trying to understand, learn the markets so you can take your trade and get it to the next level. 

Now, just a quick disclosure, we had a bunch of goofy guys complaining. 

If you don't like hot girls, big boobs and bubble booties, and if you don't have any sense of humor, or if you think that proper spelling is required to be an awesome trader, okay, unsubscribe now. If you like to whine, bitch, gossip complaint, and if that's the only reason you're here guys, fuck it, unsubscribe. 

Again, I'm not trying to save the universe here. I'm not trying to be in a competition for the most subscribers on the trading channel. I don't care about that.
But the only thing I do care is a couple of hundred guys that are going to use this information to pay cash for their house this year. A couple of hundred guys that are going to make two, three, $400,000, and about 10, 20 guys that are going to make a million dollars with me this year. 

That's all. 

I understand I can't help the 12,000 subscribers we got here right now. But I do want to help just a handful of guys that are committed, and they're really trying to make something out of themselves as a trader, are really trying to pursue their dreams in life. 

I wanted to do this now, not in the next 30 years, not in the next 40 years. That would like to learn something they can do today in order to make their dreams a reality tomorrow.
The one question you should be asking yourself when you wake up in the morning, that is if you are trying to perform as a high performance trader. 

If you're just trying to perform as everybody else who gives a shit? But if you're trying to perform at the highest level, look at yourself in the mirror when you wake up tomorrow and ask yourself this question, do you believe that you will be an awesome trader tomorrow? 

Do you believe that you will be an awesome trader this year in 2020? 

If your answer is yes, then you should understand this. If you have hope in the future, there is power in the present. In other words, what you do today matters. What you learn today out of this video matters. 

That's why I want you to get off your ass, grab the pen and paper and watch this video with the highest level of intensity than you have ever watched any other trading video ever before.
Now to make the most of this video, guys, I highly recommend review these two videos. Yes, the one video that was posted last Sunday, February the 9th. 

One chart pattern you must know for day trading earnings this week. Very important. The one chart pattern that was explained there produced returns of over 2000% this week. I want you to understand, I want you to go to the root of what was explained in that video so you can get better. 

The second video, the one that was just placed yesterday. It was posted yesterday on this channel guys, on February 14th. Breaking down how to trade EXPE, BKNG, Roku, and NVDA earnings. Giving you all the details on that, so review those two. If you have watched them, let's roll, let's move forward from here.
Real quick not to make fun of anybody but to illustrate the subject so you can remember this better, I will first walk you through what a typical trader would do, and later I will contrast this with how we do things here, utilizing the 13 Markets Move Formula. Any so called bulls that claim they made money buying calls Friday are simply lying. 

Here's why. Now, most of the typical traders, they condition that the best time to trade is to trade the open, 9:30 to 10 o'clock. Now pretty much unanimously, 99% of the traders they have this bullish bias right now, okay? They're bulls, no matter what, they are bulls, all of them are. That market can never drop it. It's going to go to the moon forever.
Most of the traders are so brainwashed right now that this is an infinite bull market that will never stop. They're conditioned to just go ahead and buy calls. Since majority of the traders they're conditioned and brainwashed to believe that this timeframe right here is the best time to jump in into calls. This is what a typical trader would do. 

I'm going to walk you through. Considering the market was opening in the green Friday, February 14th, a typical trader would actually buy calls in the first 10 minutes of the trading session in the expectation of the markets going higher. This made a lot of sense, if you are that type of trader. Here's Amazon. The typical comment, "Leonardo, everything is gaping up higher this morning." I know, which is not the ideal condition you want to have if you want to buy calls. 

You don't want to be buying calls when things are gaping up higher, because when market gaps up higher, actually it has a higher probability of a reversal.
This is where Amazon was trading, 2161, 2160. I'm going to scroll this down so you can see time frame. 9:07, 9:30, Amazon's trading about 2160. What else do we have here? BKNG 9:30, 9:45 trades at 2024. Roku 9:30 trades right here in the area of about 152, 153. Fast forward things a little bit. 

Here's the move to an Amazon. As a typical trader, you will be like, hell yeah Leonardo, God damn it wrong so wrong. I'm a bull and you are a bear, and I'm right and you're wrong, and I'm buying calls. Shit, he was right again. Why did I put those bad comments? Oh fuck. But no, I'm going to buy the dip. This is what they do at the Bluepoint. 

They buy the dip. No, I've been posting those comments out there, buy the dip, everybody buy the dip. They buy the dip right here, it bounces slightly just a couple of bucks. Then we never hear from them again. I wonder why. Because it is a move too. It's complain and whine.
The point here is this, it's very simple guys. Just because somebody has a bullish outlook on the market, simply buying calls and maintaining the bullish view is not going to make you the money. Does it look like the guy that pulled your trigger out here and buying Amazon calls? 

Does it look like he made the money on Friday? The answer is, it's not no, it's hell no. Second chart, BKNG does it look like calls made money? See the idea is the most active trading point is the first half an hour they were buying calls. They're so bullish. Come on, I can't wait for somebody to actually record how they were buying calls right here. Come on. Bring it on. 

So move to BKNG, now interestingly, we're going to use this as a very detailed breakdown so I can actually help you guys improve. Because what was said in the video posted on Friday, we actually specifically said short BKNG at the open. At the open literally means right here.
If you pulled the trigger at the open, we initially suggested buying 1980 puts in BKNG. Immediately after that it reverses, hits the 1980. That would've produced 260. That was actually lowest percentage gain in BKNG puts over the course of the entire Friday. What you want to do as you hear often us talk about in the videos, about shorten the bounces. 

Now it bounces. The only difference, these options now that you're buying here coincide with a time frame about 12 o'clock, 11, 12, right here. What you need to understand is these options right here, 1990 strike, they're sold for a dollar, actually 95 cents right here. 

Within 20 minutes they're sold at 4.9. That's a 500 percenter guys, that's a 500% return within 30 minutes. Now, I'm going to share a very important step with you. I'm going to share a very important tip here in just a second for you to understand, but let me finish this chart. Bounce, you answer the puts again, and you make another 500 percenter.
Now notice this last final drop doesn't really come in until the last 20 minutes of the trading session. In order for you to perform at this 260, 500 and 500%, it's very important to adjust your strike if you see that the stock is doing this. 

If you see the stock that typically reverses and it could reverse by 40, 50 bucks. It doesn't mean that you should be buying options that are 50, $40 out of the money. If you see the stock by midday like 12, one o'clock, if it's stalling out pretty much within the same levels it was earlier in the day between 9:30 and 10:30, you should adjust your strike. 

 We're talking about intraday trading, so shorten the open was profitable. That wasn't as profitable as shorten the intraday. Why? Again, we trade weekly options. We specifically deal with options that expire on Friday. Now for those of you that might have taken this trade and you bought options that expired next week, there's no freaking way that you can get a 500% return. Understanding this is crucial.
Now also, those of you that bought next week expiration also invested a lot more money. While we were investing 1,000, couple thousand dollars right here, by buying next week's options you are investing 10, 20,000 and you're actually able to buy less options. Just because you're going longer on your expire ration does not mean that the trade has less risk all of a sudden. See, most of the time traders do that when they don't know exactly when the move is going to come in. 

They often say like, “Hey, I'll get me some extra time in the trade just in case.” Well, when you're saying stuff like that to yourself, what you're really saying is you don't really know. If you don't really know, you shouldn't be taking the trade in the first place. Does that make sense? Trading intraday, the initial message that was actually shown in the video was buying BKNG 1980 puts on bounce to 1990, 2000. Understand I record these videos pre-market.
Naturally I wouldn't have the latest chart, because I have to record them before the market opens. Here's the deal. At the time I was recording the video, this was the chart right here, BKNG was at 1990. If you ever watch in some of these 13 Market Moves daily analysis videos, what you want to do is understand that these charts are taken pre-market. 

Now, the most important component of this chart was the fact that we described that BKNG stock was moving higher on very tiny volume, which was only about 300 shares. Now notice, I'm suggesting shorting BKNG when it bounces to 1990, there was still in the cards it could move higher. Okay, let's say to 2000. Then we were suggesting to buy literally these puts that at this point would have been 10, $20 out of the money. If you watch most of my live trading videos, guys, that's how I like to do it. I don't want to go substantially out of the money unless certain conditions are met.
If you're really trying to learn how you could have done better on this trade, watch this. Tip number one is you want to adjust your strike if certain conditions are met. Condition A, if stock makes a sharp move higher at the open. 

For example, in stocks that are highly priced, and there's not a ton of those stocks out there. But understand that if it's a $1,900 stock, $1,800 stock, and if it's an Amazon, like a $2,000 stock, these stocks can move 20 bucks. It's not a big deal. It would be an equivalent of a $20 stock moving 10, 20 cents. If you understand that then you should position yourself properly. 

Now you should have adjusted your strike slightly. Noticing that... Hold on. The same condition is met. It's not like all of a sudden BKNG is rocking in higher and stronger volume. But I understand that I don't necessarily... Now it's trading at, at the open it was trading at 2024. What you want to do is you want to adjust your strike.
You want to go with 2,000 strike, maybe 1995, 1990. But you would have readjusted your strike price accordingly. Even if you went with an initial strike price, you would've still made 260% gain around here on this drop within minutes. 

Then you would have been able to reposition yourself. But at this point, you understand, hold on, this drop stopped, the stock is bouncing. You could have adjusted for a better strike. When you trade in intraday guys, it's super important to understand depending on how the market move is developing, in the stock and in the market, it's important to acknowledge it and adjust the strike. 

Now if trade moves sideways longer than typically expected on Fridays, what we mean by that is there's certain key stocks that would like to trade. If there is a daily trading range of say 40, $50 in the stock, what you want to do is if all of a sudden the conditions are changing, and all of a sudden typically the stock maybe would've moved $30 lower or higher within three or four hours that day.
But all of a sudden the daily trading range is being diminished. Now all of a sudden the trading range is only 20 bucks, then you should adjust your strike price accordingly. In other words, if you maybe own the 1980 strike, but you see the stock keeps going sideways for a couple of hours, and it has not done that in the last five Fridays. 

You understand hold on, that's a bit of a shift in the environment here. I got to adjust my strikes. What you want to do is you want to sell the out of the money strike, and you want to repurchase a higher strike. It doesn't mean that the trade is bad, it just sometimes you're going to have an awesome trade, but if you got the wrong strike, it could actually turn that trade into a loser. 

For those of you that have been trading options actively, especially weekly options that is oftentimes what it comes down to. It's about your entries, exits and your strikes.
If you watch all of my live trade videos, guys, typically you don't see me going way out of the money on puts, unless VIX is uptrending, and numerically VIX is high, which is always 16. 

In this condition, this Friday, we have VIX between 14, 14.5 level. One of the conditions was not met and VIX was going sideways to downtrending, so none of the conditions were actually met. In this case, being 20 to $25 out of the money, when you select just strike price is actually reasonable. 

Reasonable meaning you wouldn't want to be 20, $25 out of the money on $100 stock. But considering this as a $1,924 stock, again, when you do the percentages and calculations, that'd be the same thing as buying, something 50 cents out of the money in like a $50 stock or something like that. 2025 bucks out of the money on a $1,924 stock actually makes sense. If I go back right here and show you one more time, okay.
Basically watch the timeframes. It's very important guys, write this down. Watch the timeframe. The stock pops in very low volume. The strike that was described in the video now should be adjusted, because we're no longer opening at 1990 or 2000, now we're opening $24 high, which is fine, but you want to adjust your strike price. 

The ideal strike price would have been like 2000, 1995, 1990. You would've made a huge gain. Actually if you were to select those prices your gain would have been high. Then right here, same thing. 

See, we're going sideways for some time, so typically we would get a bounce, maybe go sideways for 30, 40 minutes an hour, and then would resume the drop. In this case, we stay sideways longer. Here's another red flag. As soon as we make this dip from 2009 all the way down to 1900, this is exactly the time interval where options go from like 90, 95 cents all the way to 4.9, creating that 500% return.
Then we bounce. Look at how quickly the bounce, and then instead of just sometimes you'll get quick bounces like this and then the stock will immediately resume the drop. But in this case we bounce rather quickly and then we hold the sideway pattern. That's not good. 

That tells you hold on, something is just not right because it drops, bounces, drops, bounces sideways. Now the strategy of shorting the balance was insanely profitable, if you just got the right strike, and if you capitalized on the drop trade intraday. Now notice how this strategy of shorten the bounce, the initial bounce at the open, the second bounce, and the third bounce, create phenomenal opportunities intraday. 

But not the strategy of actually buying calls. If anybody bought calls right here, they lost their ass. If anybody bought calls right here, by the time the stock got to over here, they would have depreciated. They would have lost value.
That would have decayed. At best, they might've locked in like 50% return. Same thing here. These bounces in relation to the drops, do you see how much smaller they are? You get a drop from 2024 all the way to almost 1980. That's a $44 drop within like 28 minutes. 

Then your bounce is much less than the drop, than the size of the drop and then the magnitude of the drop. So now you're at this level right here. Then notice the size of the drop, $20 drop in relation to the bounce. The bounce is only about 60% off the drop. If you understand this, you will tap into some unbelievable trades that other people are just simply blind. 

They don't see them. But this is how you're going to make a bunch of money. After BKNG I hope this makes sense. Again, to review this, adjust the strike as the day continues on. Adjust the strike if you see the stock keeps hitting certain level, and it has staged to move lower, adjust your strike higher.
That is of course the case when you're trading put options. Okay Roku. 150 puts at the open. Look, the stock was moving higher on the greater ends report. That is what we said in the video. This is what happens next. 

Does it look like calls made money? All these guys that are saying, “Leonardo the market closed positive man. There's no way you're making money on puts.” Screw them. They don't know what the fuck they're talking about, okay. Does it look like they made money? Let's say they were bullish, and they decided to go ahead and buy calls. 

That's why they're not leaving comments today. Because these guys, they are destroyed. Buying calls when the first 10 minutes, 30 minutes of the trading session here was a disaster. Guess what? The same guy, “I know I'm right man. Let me buy the dip. I'm going to buy the dip man.” Okay, where's he at now? Now the worst thing is being bullish actually conditions you to buy the dips.
When you're buying the dip here, temporary you get a smile thinking that you're right. But then like damn it, you just get completely wiped out. Basically guys, what it boils down to is having this crazy bullish outlook, prevents you from taking some insane trades. 

Guys, this was like an insane trade, 800 to 2800% in less than five hours. From here to here baby. And guess what? If you would have used the strategy of shorten the bounce, then if you miss this initial drop, you could have gotten on the bounce right here and you would have still made 500 to 1000% guys. All right, there's some other trades that we talked about ANET, EXPE. 

Now those of you might not have watched that video. It was another video talking about Amazon and Shopify the day before. That's why we're showing these as examples right here as well. We noticed this reversal pattern in both charts in Amazon and Shopify, and that's why we switched from being bullish to being bearish on these two stocks.
ANET, boom, where's it trade at the market open? 227, so it's shorted, shorted on the bounce, shorted at the open. EXPE, shorted on the bounce. We said when the market opens at about 225, 226, Shopify short the bounce. ANET, 225/220 puts at the open guys. 

Next trade described it in the Friday video, ANET 225/220 puts at the open. Guys, you got to pay attention. I'm not saying ANET 210 strike, I'm not saying ANET 200 strike, I'm saying ANET 225/220 strike at the open. Where was the stock at the open? This is ANET at the open at 227. How would you like to be a bull there? Okay, so while ANET is dropping from 227 all the way to 217, okay he's no longer bull, he's officially a bear. Well, welcome to the club. This move right here guys. All it takes is about 33 minutes, two, 300% gain. Weekly options.
Guys if you don't understand how the hell to do these two, 300 percenters within 33 minutes, got to click the link below this video and get more information. You may be saying, “Yeah, but I bought the dip.” Okay, and if you bought the dip, there's no way you would've made this type of returns because overall the stock stalls and doesn't go higher. It doesn't drop anymore, and it is likely to continue lower next week. 

But guess what? You bought calls for next week buying the dip, and guess what's going to happen by the end of the week if you keep holding them things? It's going to look like this, from 227 to 217. Exactly the way you felt when this happened, this is exactly how you will feel next week because this stock is no good. It's got more room to the downside. Expedia. Notice guys, notice specifics, the specifics. This video is about helping you watch the content on this channel so you can get better.
Expedia, what strike? 125. On what? On bounce. To what? 125/126. There's two things that we can actually say about this trade and how you could have executed it. Number one, you should have gotten the right strike, so 125. 

If you've gotten the 125 strike, you would have made really quick return within the first 15 minutes of trading. About 200, 250% no big deal. But if you've got a strike that was like a 115 or 110, those are not good strikes guys. We're not trading BKNG where it could drop 20 bucks in 20 minutes. This is $100 stock. We shouldn't expect it to drop 25 bucks. But even if you bought 120 right on that move right here, this was a 300 percenter in the 120 strike. Not bad, right?
But the idea is this, your strikes do matter. Your entries do matter. There's no way if you're a bull that you would be using this. Now you may be saying, “Leonardo come on man, I don't trade the open man. I'm better than that. 

I'm better than you. I'm better than that, and I am a bull and I bought the dip.” Well the question is, if you bought the dip, okay, let's say you nailed the damn dip, and you bought it perfectly. Still, the stock ended up 122.5, 123, there's no freaking way you would have captured this much of a percentage return. Now, here's why. Now this is overall a five dollar move lower, while you were capturing a two dollar move.
Does that make sense? I don't think that makes fucking sense. All right, so tip number two basically is focus on strike prices. The only way you could have lost money on Expedia trade on Friday guys, if you selected the wrong strike price, and never adjusted it. Let's say initially you could have gotten like 115. 

When the stock started bouncing out of the 120 you should have sold it. You should have readjusted your strike price into a better strike, and you would have done much better. Your safest strike guys understand this, is the closest to the top of the bounce. Which basically allows you to buy the stock put at its peak price intraday, and you end up buying that put near the money, at the money, or slightly in the money.
Those are the puts that will produce the greatest result. In order to understand this guys, you actually got to understand the stock divergences, the stock charts. We teach a lot of that stuff in our charts divergence course. 

Now here's the deal, NVDA, catching a lot of bullshit. The question is why? If you listen to the video, the video tells you specifically what. On the other slides we specifically said either short the bounce, or we said short the open right at the open. On this one we said what? We said wait till the stock bounces to 294. There was a reason why we said 294. 294 that's when we want to buy puts. You want to wait until the stock moves six dollars higher, and then short the hell out of it. 

Why? Because we shorted NVDA at 294 a year and a half ago. We knew that once the stock was going to get to that level, it was going to hit a resistance, and that was the ideal level to come in and short the hell out of it. Guys, you got to know the chart, you got to know your levels.
You could be saying, “Leonardo, but I'm new. I didn't trade a year and a half ago. How the hell am I supposed to do that? How the hell am I supposed to know that?" Guys its simple, you should make it a habit to go look at charts on different timeframes, you're not going to help yourself become a better trader. You could argue, hey we actually had a comment from the guy, “Well hey, I'm the man here. I bought calls and I sold the puts.” Well, whoever that was that posted that comment, I dare that you would show us the trade. 

Because right now you've got to be very, very freaking nervous. Because I guarantee you if you show us your execution, you were buying calls when, when the stock was here. Or you could say, no, I'm so good I nailed it. I bought it right here 287, 280. Okay, fine. So what happened since then? Let's say you didn't jump at the highest level. Let's say you did buy it on the dip, and then the stock bounce. Okay, all right, fine.
If you bought next week's options, number one, if you bought this week's options, if you bought Friday expiration, the stock popped and it dropped. If you stayed with this trade, okay, you would have not made money. Because by the end of the day, whatever you were paying for the call option right here, was actually less by the time the option got here. 

Because you might have been paying a couple of dollars right here by the time it actually finished the day, it was like a dollar. Now understand this important factor right here. That the greatest trade of the day was actually pulling the trigger on the put side, and shortened at 294. Okay, let me explain why. Because if you understand this, this is very, very powerful. When you're buying calls right here or right here, now the preexisting condition of course, maybe you can see it right here. NVDA on Friday, February 14th was already up $19 when it opened.
It had a great report, great response, very positive reaction to the report, which is exactly what we discussed in the video. Now notice we didn't say like everybody else said, we're raising the [inaudible 00:36:44] on NVDA, you need to go ahead and buy some calls. No, we said hold on, wait till it goes higher six dollars and then short the hell out of it. 

Understanding these key levels, understanding your entries guys is very, very powerful. The point I'm trying to make is, when you're buying calls, when a stock is already $19 up for the day, you're actually buying calls when the probability of the stock making another significant move higher, let's say it's already up 18, $19. What are you doing buying calls? 

Because you think it's going to go up another 18, $19? That shit ain't going to happen. But it's a lot easy at this point. All you see is like, it's in the green 18, 19 bucks, let me go ahead and buy calls. No.
I hope you didn't do that in Shopify two days ago, because if you did you got killed. The point here is this, this is the worst time to buy calls. If something opens up in the morning higher, this is the worst time to buy the damn calls. You don't want to do that. You definitely want to wait for a pullback if you're just completely insane, and you don't want to listen to anything that we teach in our channel. 

If you want to just be a bull, that's fine. I mean, you're being a bull at the worst possible time to be a bull. The market is at fricking all-time highs, and it shows all kinds of signs of diversity. But go ahead, just please record the damn trades and let us see them. All right, so here's the deal. 

This is the worst time to buy the calls. Absolutely worst time, because right now when the stock is up 18, $19, they're priced the highest. This is the highest fucking price you can pay for these damn calls. You may say, “No, you're wrong, it goes higher.”
Okay, well please don't fucking tell me you sold it here because you didn't. Because at that point you're like, “Yeah, I knew it I'm right. Hell yeah there's no way.” Then you're like, “It's making a little pullback. It's okay. 

I'm holding on its making another one.” Right about here like fuck it, I can't take this shit no more, I'm out. Sorry guys I’m having too much fun here. The point is when you're buying these calls, you're paying the highest possible price. Now when all the bulls have mesmerized with this magnificent six dollar move higher, that we knew was going to hit a wall when it was going to get there. Based on our historic observations of the behavior in this particular stock. 

Based off the numerous freaking hundreds of trades that we've taken on the NVDA, we knew it was going to hit the damn wall right here. The question was, this is the most important question if you're trying to understand how today trade intraday on Fridays.
Guess where the puts are priced right now? We said on NVDA buy 290. 290 strike put when the stock hits 294. Guess where these 290 puts were priced? 290 puts right here were priced when the stock was trading at 294? 

Guys, they were going for 40, 45 cents a put. Basically the 290 puts were worth the lowest possible amount you could have possibly freaking paid for them on Friday, and that's when you pulled the trigger. 

This drop right here from 294 to 288 okay makes you a quick 400% gain, guys within an hour, this is within an hour. Now this move did not produce a 400% gain. Why? It's because of what you're paying for these options. 

Again, the stock was already up 18, $19 higher. Everybody thought it was going to go higher. Nobody would sell you the damn options when the stock is 18, $19 higher. Well, everybody's raising the price target on the stock, everybody looks like they're so optimistic about it.
That's when you're going to pay the highest price. When you pay the highest, it's going to be very difficult for you to make these three, four, 500 percenters. It's going to be almost impossible. It's the cost of the options. 

It's not that you're wrong with your trade. Let's say you're really good and you actually understand the probability of the stock moving higher once it's already up 18, $19. Let's say you already understand all that and you're really good. 

That's awesome. But also understand that the second part of the equation is not whether you're right, whether something is going to move higher, by another let's say four, five, $10, but what do you make of it? 

In other words, how much are you paying? What is the cost of your option in relation to what you're going to be able to sell it for? When you're looking at the same size move from here from 288 to 294 on the bull side, you're not making as much because your cost of these calls is substantially higher than the cost of my puts.
On the same size move I am making a ton more than what you are making on the same move on the call side. Now I hope you understand this because this is key. Understanding when you're actually getting a good price on the option, and pulling the trigger at the right moment, is the only way to make money with directional options. 

Because most of the people don't understand this. That's why you got so many bullshit gurus out there killing you that selling options is the best, most effective strategy ever. Because they don't know this. See, if they knew this, I'd be like, what the hell? I’m trying to invest $20,000 selling these options and I'm making like 10%. Dude, I've just shown you these move 400% mover within an hour. You sit and selling your options waiting for a fucking month to collect 10%. Now tell me which strategy is better? Come on. Now on top of that, selling options don't work for small accounts.
You guys got a couple of grand in your account, good luck go sell some fucking options. That's not going to work. But here you can invest, let's say you're working with a small account, you can invest 300 bucks, turn it into 1200 within an hour you're done. But guess what? You're going to say, “Yeah, but you can lose the money.” Okay, fine. Yeah, you can lose 300 bucks. That's the worst case outcome, all right. 

But imagine you can actually get good with calculating these answers. Imagine you can actually get good with calculating this shit. I'm hoping you're watching this video because that's what you're trying to do. Because that's why I'm trying to explain to you this stuff. That takes me to the next most important point guys, and that is most of the people will tell you that trading weekly options is incredibly insanely risky. That's a myth. Do you see how you can risk their little bit of money opposed to risking a lot of money?
See the guy that sells options, even though he's not going to admit that he’s risking $20,000. Why? Because he's got $20,000 tied up into the trade, in order to make 10%. He's risking 20 to make two grand. We're risking 300 to make 1200. Tell me which trade is better? 

From the risk reward perspective our trade is 100 times better, and it works for any size account. All right, moving on. All right, this is actually, so I don't have to record a separate video, this is a quick review of the BABA trade guys. A quick review of the BABA trade. On Thursday we posted the video to all 13 Market [inaudible 00:44:38] members. Said, hey, short BBA at 223.40 specific alert was sent at 223.40. Now BABA overall action was bullish, okay. But again, when the stock was moving higher, it didn't make sense to buy calls. 

What we want to do is we want to target the bounce, when put options become incredibly inexpensive we want to pull the trigger here.
Now this trade right here, I mean by no means it was no prom queen. It was a couple of hundred percent depending on what strike you were buying, would have made two, 300%. But the idea is the same. 

Again, if you've taken the BABA trade, but you didn't execute the entry correctly, you would have not done as good. But also understand this, that buying, let's say next week's calls right here guys, when the stock was trading, let's say here, at 219 on Thursday, buying next week's calls would have not made you any money. 

Shorten the bounce, would have made you a good bit of money. The kind of money most of the traders don't freaking expect to make in a month. I mean, that's a couple of hundred percenter right here. Understanding this, okay, when you're buying next week, or you're buying next month, you're committing a lot more capital to the trade.
But this is what you're not getting, is that there is a risk at committing more money over a longer timeframe, because what you can see is this, and basically sideway trends. Sideway trend goes by all of a sudden, hey, what happens? Your options decay. 

Your options lose value. Just buying extra time is not like, look, it's just not the best strategy. You're better off timing your entries, you're better off doing a lot of studying on charts, charts divergences, and really getting good at identifying this. When is that you want to short the bounce? At which point do you want to pull the trigger? At what price? At what strike? Specifically, if you go back and you analyze this BABA trade, we actually suggested 225/220 strike. When you're doing that, the stock actually drops 218. 

You're making way more money than anybody would've bought calls. Because anybody would've bought calls unless they sold them pretty much right away in the pop here.
But again if they bought next week's calls, there's no way they would've made the money that you made. Okay, so bottom line just end of story let's roll, let's move on. I'm going to show you the most important thing right now guys. This is how you could have made over 500 to 2000% returns. 

Meaning for every thousand dollars you've invested, you could've made back 20K or at least 5K. You would have been able to do that by watching our video posted last Sunday. Yes, another weekend extravaganza 13 Market Moves. February 9th this video. Again, one chart pattern. 

Guys, you got to understand this chart pattern. Look, if I can drill into your head how important this damn chart pattern is, just understanding this one freaking chart pattern. You're going to be shocked the type of trades you're going to be able to put together. While the bulls are being bullish, you're making five [inaudible 00:48:13] being bearish. Damn it Leonardo, show me this one chart pattern again.
Let me take another consideration of this. The chart pattern I was showing you guys brief review real quick, RCL pay attention. I'm going to break it down one more time real quick. Watch this. What's this? That's called the gap down. What's this? That's called the beer reversal candle. What's this? 

That's called the black candle. What's this? Another black candle. Another beer reversal candle. Basically what you want to focus on, anytime you have a gap down on meaningful volume like here, look, we're not gaping down on this kind of volume. We're gaping down in some substantial volume. This is almost the highest volume on this fragment of the chart. The only candle that's high is this one. 

We have this condition, something gaps down and it bounces, and it creates this type of candle. You want to acknowledge that because the next move is lower. Now it doesn't guarantee that there's not going to be further bounces, but further bounces are to be shorted.
They typically will result in a further drop. Understanding these [inaudible 00:49:23] some other things. Guys, like there is a deaf hook going on, there's huge divergences right here when the stock failed to make that second attempt to break out higher, look at where RSI was right here at 133. 

Look at where RSI is right now at 135 substantially lower. Guys, I don't have time to show you freaking everything in this video, otherwise it's going to be five hours long. But just focus on this gap down, bounce short to bounce, another drop, another bounce short to bounce. I'm going to show you now the couple of instances of how you could have used this. 

Now when you zoom in to actually pull the trigger, you see this candle around here, and you see this candle around here, well, when you look at the one day, one minute chart, it's going to look like this. This was a more detailed view that we've shown you last Sunday on February 9th, basically saying, hey, RCL after the earnings, what does it do? It bounces.
We want to short this bounce, because we've already studied the chart and we know the levels. Once it's going to bounce to 122/124. Guys look, how the hell can we be so damn consistent to tell you exactly when is the right time to actually pull the trigger on this trades? 

Guys, it's not a coincidence. It's the 13 Markets Move Formula, its the charts divergences. It's understanding how to look at things in a way that 99% of the traders don't have a clue how to look at. You can actually learn how to do this, and you can get good at this stuff. That's the exciting part. RCL 120 puts recommended shorten it on the bounce to 122/124.

 The stock opens goes to 123 and never goes higher, and then it reverses like a maniac. This is how you could have actually used this chart pattern and used the details of shorter than the bounce on the one day one minute chart. Multiple times this week, guys this is like please freaking learn this shit.
Here's the exact breakdown of the first trade that was based on this pattern posted on February 11. This was the trade on Hasbro, explained in this video with a thumbnail that looks like this. I forgot what her name was. But anyway, Hasbro options today some other charts that point were bullish and Amazon, Amazon since that moved 50, $60 higher. MELI options that thing had a reversal of almost 100 bucks since the entry to the upside, we've said buy calls on that. All of these guys they were calls, and we had reasons to be buying calls on these things. This one we did puts, based off this one chart pattern. Damn it what is it, Leonardo show me this shit one more time. One chart pattern shown on Sunday, February 9th, 20 video. 

Look at this. Do you see the details? Just compare these details. What do you have? Earnings report you have bounce on RCO. What do you have here? Hasbro. Have earnings report you have a bounce.
You can say, “Leonardo, what the hell did this... Hold on, this is a trailer stock, this is Royal Caribbean cruise line, and this is a toy maker. How are you going to use the same chart pattern?” Guys it's because these chart patterns are so powerful that you can actually use them on any sector. That's the beauty. Now let's review the preexisting conditions. 

Let's look at the Hasbro chart. It may look at the first glance like it's quite a bit different because you got more of a prolonged sideway trend. But the idea is the same, I just want you to grab the concept. First, what do you have? You have a preexisting condition of what? Huge gap down. Huge gap down on what? I have huge gap down on what? What do you mean what? Fucking higher volume. Huge gap down to higher volume. Stock drops, bounces. Now look what happens when it bounces. It drops. Bounces, drops, bounces, drops, bounces, drops, bounces, drop, bounces, drops.
Thank you hallelujah it bounces again, yes. Here it is as shown you in the prior picture out of your bounces, after you guys just got a better view overall. That's why I recommend looking at multiple timeframe charts. Now it's right here, 110, 109, 107. That is represented around here. 110, 107.5 right around here. So basically in that video on February 11th we said, hey, you want to come in, buy these puts at the open, and then you want to target the level of 100 first, because that could be the first supported area. 

You can take some profits there and then watch the stock drop all the way potentially to 95 this could be your second area of exit. Here's the actual live trade execution guys showing you details of exact execution on this trade. Look, I'll say this, this by no means was perfect execution because I was a bit slow like entering some stuff right at the open.
I didn't get the best feeling, I was a bit frustrated with that. But look even with that, for those of you that have taken the trade got a better answer than me. 

Guys, I know some of you've done like seven, 800% on this one. I didn't do quite as good, but I mean here it is check it out. Boom, right here. Hey guys, what's going on? In this video we're going to show you how to turn $1,500 into 10K. We're going to buy some Hasbro puts. 100 level put currently the stock is trading at 107, so we want to buy actually about 30 of these puts, 30 at about, we want 30 at 42. 

Let's see where we can get that field, buy. The order's sitting in nothing's going on. That's why it dropped to 106, so we're going to have to step up and pay more for these, so maybe 47. No, not getting a feel. All right, let's try to move that up to 50.
Order partially filled.
Okay, partially filled position one. Damn it we only got one. Okay, that's not good. Now they're going for 153. We're just going to have to probably turn this order into a market order and just get as many as we can. Just bomb at market. Because I don't want to miss out on this entire trade. 25 at I should've just entered this market order from the get go.
Order partially filled. Order filled.
Damn it, I paid too much for them damn things. Average price, 74 cents that was horrible, horrible execution. Just horrible. Just try to buy three more.
Order filled.
All right, so we bought two more. All right, fine, so loosing 29 bucks in this trade we've got 20 Hasbro puts. Overall we bought them wall, the stock was moving higher. But still by the time the order got filled, the stock has already dropped. The trade was described in our 13 Market Moves daily video basically saying, “Hey, it's the same chart pattern that we have identified in RCL.” If you haven't watched that video guys, it was posted on February 9th, 2020. Specifically going through the one chart pattern that you should be using for trading earnings reports this week. In the video today we explained exactly how this chart of Hasbro was almost an ideal match with a chart of RCL last week pointing to a reversal and a drop. The goal was to actually come in and short this on the bounce. So anyways, with that said, we want to set a limit order to actually sell these guys.
We're going to sell. The position 20 of them and set a limit order, they are at about three bucks. That will put us at about 6K in the account. I mean if it reverses another three, four bucks, it's likely to possibly hit a level of 95. But so far we're targeting from the reversal to maybe hit a level of 99, and the stock is at about 105 right now. What we want to do is set a limit order at about 3.45 here, submit it. As you can see, the trade now is making 369 bucks. It's not bad considering we started with what $1,500, and we had a horrible execution of actually trying to get into the strike. We want to have this limit order just sit there, and do this. By the way guys, we're trading today with Interactive Brokers. We have a lot of new subscribers from around the world, and a lot of them are using Interactive Brokers. They've actually asked me to trade on Interactive to show them how I'm actually going about these trades.
Now in my view, there are actually some good things to the software, but as far as the charting part of the software I believe it is inferior to Thinkorswim. But nonetheless, once you actually try to play around with this, and try to get good at utilizing this, I mean it's not a bad alternative for anybody that is overseas that is trying to trade the United States market. Now you have to, again, probably look at the charts part before you go in and place these trades. You shouldn't be doing that at the same time you're trying to, because the chart part of the software here's just not as good. You should calculate your trades ahead of time, and when you're going in and you're just focused here basically on executing your plan and trading that you have said before the marketing even opened. With that said, we'll review the trade shortly guys. But let me go ahead and finish setting that limit order. There it is. Submit.
You'll see this order appear right here. I've got a sell order sitting there to take this position out when the stock drops. We're calculating the drop about six dollars. That should get us real close to this price. Especially, well, it really depends on how quick the drop could come. Given the fact that the stock is bouncing, okay, so now it's at 103.51, 103.30. We should see it spike in these contracts valuation pretty quick here, if we're getting to this 101 level. Then it's going to be, is the stock really going to break below that 101 fast to get us actually an opportunity to cash out the 3.45 today? Or is it really just going to stall out here? That's what we don't want. We don't want this trade to be stalling out right here. We want the trade to actually break this level, and the quicker it breaks this level, the quicker these 100 strike puts are actually going to produce the result we're looking for.
It's all about now watching the chart, watching exactly how this trade develops. If it stalls out, we may have to actually readjust that and get out of the trade earlier. With that said, we'll do a quick follow-up shortly. Okay guys so, so far we've pretty much doubled the account. It's 9:49 AM at this point. Hasbro is dropping about 102. Remember we were buying these average of about 74 cents. They're going for $1.50 now, that's why we're showing a $1,400 gain here. Whoops, bouncing, the stock is bouncing so only making 866. But we didn't get into this trade to just double the account. We're really trying to target this exit at 3.45. Now this could be modified slightly again, based on how this chart is developing. If we stall out it's 101, probably may have to pull the trigger at around two dollars or $2.50 cents. Ideally, we think we should be able to close this at 3.45 by tomorrow.
We are in no rush to close this position today, because this reversal in the stock actually let's take a closer look here. Switch it to the one minute. This reversal in the stock that was explained in the morning video, it is likely to continue based off the preexisting condition. We're drawing a parallel between the RCL chart, and this that looks very, very similar. Now if you study the RCL chart, it is likely to make a bounce at some point. The importance there is not to panic, and actually stay with the trade. Don't expect the stock to just completely drop, drop, drop at the instances it's going to make that. But the quick the drop, the higher the probability becomes of a bounce. It's important on one end for us to make sure it does pierce this level of 101, but if we get to this 98, 99 level, we should be hitting this area to where we actually close in this. That should coincide with the moment right before the stock is actually going to bounce.
A quick four dollar move lower from here should trigger this order to get executed, and then we should be moving higher from there guys. At that point we're not necessarily looking to play the bull side, because that bounce is not likely to be long-lived. On the opposite, we want to target if it hits 98, 99 level bounces back to let's say 101, we want to target that area on actually coming in and pulling the trigger and buying puts again. Short the bounces guys is the subject of this trade, and if you're not sure how to do this, guys, there should be a link somewhere around this video probably below this video where you can actually click it, sign up, to get more information on how you can learn how to trade, put together trades like this pretty much on daily or weekly basis. Take action, click the link and get better as a trader. Let's roll. 101.51 on a $1,500 investment in less than 20 minutes we're making 1500 bucks.
But still staying with the trade guys, I know a lot of you would be jumping out right here saying, “Hey, I'm good with this.” Hey I made 1500 bucks and only risking $1,500, I'm doubling my account in 20 minutes or less. I'm out, man, Leonardo, close, collect the gains. Guys, you have to understand the calculations of your trade. If you don't know when it's time to hang in, if you don't know when it's time to jump out, and definitely you should take action. Click the link below, get more information so you can become the best trader you can be this year. Hey guys, what's going on today is February 12th, 2020 and we are still in this Hasbro position. HAS puts is what we purchased yesterday. Remember we're buying 20 of them at an average cost of about 74 cents. Today they are trading about two bucks. With Interactive Brokers, this part maybe just a bit confusing because it shows you daily P&L.
Since yesterday we're up 1400. If we're to liquidate the position right now, net liquidity is going to be right at 4,000. Yesterday remember we started with $1,500. The unrealized profit right here is 2.5K. But again, we did not get into this trade to just do a quick double. We're actually targeting a certain level. We're going to stick with the position. Again, there's certain bounces. What we were actually afraid of yesterday did take place. The stock did stall out right at that 101 level, and just has [inaudible 01:06:08] drop below, drop below. So we had to be extra, extra patient. We're going to wait for that next leg lower to come in into the stock. Guys, if you don't know how to calculate this levels it's actually crucial when you're trying to day trade or swing trade, understanding your levels. We see a lot of traders, they simply getting get in and get out of the position, contingent upon how much money they're making on a trade or contingent how much money they're losing on the trade.
That's just not a way to do it because it's going to be very difficult to stay consistent. There's much better strategy is what we've discovered to actually understand chart patterns, divergences, 13 Market Moves that allow us to calculate things and be patient, while other people are being emotional. If any of those situations that I just described may apply to you, don't hesitate to click the link below this video. Take action, get more education so you can become a better trader. We'll do a quick follow-up shortly. Hey guys, it's 4:29 PM February 12th. Leonardo, you're still in this trade dude. Don't you want to take some other trades? Guys patience pays off knowing your numbers does pay off. At this point the stock drops, it was hesitating here for some time, but the pattern in this didn't change sideways drops, sideways drop, after the reversal yesterday. We've shown you the charts, we've shown you the reasons why.
Executing and staying in there is the other part of the equation of being successful at putting these trades together. Sometimes the market will really test you, but understanding why you're doing certain things really does matter and it has a huge outcome as far as your profitability as a trader. This is the chart of how Hasbro looks now. Do you see that we're able to identify these bounce, and the reversal before all of this has actually taken place? We did that by analyzing the chart of Royal Caribbean Cruise Line. Guys, this is where stuff gets really interesting. This correlations that look nonexistent in the markets, but you're observing the same pattern that could be applied to multiple sectors. Guys, this is the kind of stuff I wake up being excited for every morning. This is the kind of stuff that I love. This is the kind of stuff that just like boom, you nailed it. You figured it out. You just like whoa.
Then it opens up your eyes to other things that other people they're blinded to see. Because what do people want to do here man? They want to buy the damn dip. Buying the damn dip is not going to make you a ton of money. It can make you a little bit of money. If you're like me, if you're aggressive, look I understand this style of trading is not for everybody. I'm aggressive, I like to set records. I can't stay still. I want to go out there, make shit happen. Not everybody's like that I understand. My style of trading may not be suitable for everybody. If you have an inquisitive mind, you get excited about cool stuff like this, you just got to learn more. Because all I can do is share with you what I know, what helped me, and hopefully at some point I'm not going to be here forever. At some point I hope that somebody maybe can study all of my stuff and take it to even better level, next level.
It possibly could be somebody who has not even been born yet. But anyway, a bit rhetoric deviation here. Focus on the damn chart. This is when bulls were being bullish, and this is when the 13 Markets [inaudible 01:10:10] Formula told us to buy the damn puts. All right. Guess what the best trade of the week was based on this one chart you must know for trading this week? Yes, this is one chart guys. This one chart pattern you should've known for last week, this is one chart pattern you should know for this week as well. This is why we're taking all this freaking time to review this. Do you guys see this? This is a mirror image of the chart I just shown. Now, except that this is a chart of Roku. Let's review the characteristics, gap down, look at the volume, bounce, drop, bounce, drop, bounce, drop, bounce, drop, bounce, drop, bounce, drop on much bigger volume. Which actually communicates to you when you analyze [inaudible 01:11:00] accumulation distribution.
Everybody who's selling the hell out of the stock, it's likely to go lower. We're likely to visit maybe a level of 122, so what you want to continue doing the stock is short the bounces opposed to buying the dips. Now as you guys know, if you bought 150 level puts, 145 puts, 140 puts, guys, this puts made insane amount of money Friday, so congratulations if you took the trade. What do you actually think is another chart that highly resembles that same pattern after yesterday, Friday the 14th? Well guess what? It's Expedia guys. See, same setup. Huge gap on huge volume bounce, drop, bounce, drop, bounce, slide drop. Sometimes you will see a variation of this pattern where the thing is just going to sit here. Now notice it's no coincidence that we have said to select the 125 strike in Expedia puts. It coincides with this level of a death cross, and it could possibly stay here for another day or two plus minus a couple of bucks.
But ultimately it will actually close this gap. A good indication of that is the fact that while apparently the price section was pointing higher, while apparently the price section was pointing higher, accumulation distribution didn't do shit. It didn't do nothing. It looked like they were buying, but in reality, guess what? Nobody was buying. In the next 10 days, Expedia is likely to go lower. Could go sideways for a couple of days, but ultimately lower. Market keeps ripping higher myth. Market keeps ripping higher. Only somebody that does not trade could live a comment like this. Or somebody that buys calls that expire in one month or three months or six months out. This is how a typical trader that has a longer time horizon will look at the chart. He's going to tell you there's not, man everything's bullish, [inaudible 01:13:05] an uptrend. It just keeps going high. It just keeps going higher and higher and higher. I'm just going to keep buying calls.
For as long as this shit goes higher, I'm just going to buy calls. Now here's the truth, what they're not telling you is this, when they were buying calls at point A, let's just pretend like we're going to cut this part of the chart out for a second. See everything from here till here pretty much solid uptrend just looks so beautiful if you're a bull, you're just like, yeah, it ever finished so nice. Now notice two things. That this is the point where this bull that's buying more calls at this level, this is what he's not seeing. He's not seeing this divergence that's observed right here by our charts divergences formula and course. He's got no clue that this shit is coming. What you will have is a situation where they're going to sell you like, "Hold on, I'm a long-term bull man it don't matter." Hey buddy, I understand the market can drop here and there. It's all right. I am a long-term bull.
They're going to keep dancing, they're going to be happy for a minute until they wake up the next day. What they're not going to tell you is this, is they're not seeing it anymore. They get to a point F right here, which is like, "Fuck, I should have listened to Leonardo." They actually when the market dropped one day, they're like, “Man, I'm going to buy the dip. I'm going to buy some more.” The market drops the second day they're like, “I don't know if I should buy some more.” Here it bounces a little bit. They're like, “Yeah I knew I was right.” Then here comes the big fucking drop, and that's point F where they are like, “Fuck, I shouldn't have bought the dip.” Then market balances, but guess what happens at point F frequently that these long-term bulls are not going to admit? What happens at point F is they actually sell their calls. Because at this point their level of confidence all of a sudden see it's easy to be confident right here, shit just keeps going higher and higher.
Now all of a sudden all of that shifts, and now they're scared and they're closing their positions. Now with that said, if you actually come across a bull that will actually admit that yes indeed they bought it point A, and they didn't sell at point F, guess what they will not admit to? They will not admit that even now that the market is higher at point B, oka. It's higher than it was in point A when they were buying calls. Now an actual three-week timeframe has gone by, and even though they were buying the market at a lower level, and the market overall did go higher, their options now are worth less. Now nobody, no bull will actually fucking admit to this, but that's the reality. Because options will decay. So if you bought your calls right here with a one month or two month, or three month expiration, and if you persevered the F point, by the time your options get here three weeks later, they're not worth more than what you have actually paid for them at point A, even though the market is technically higher.
Well, hold on Leonardo, this don't make sense. If this does not make sense, you guys have not been trading the markets long enough, and you should definitely click the link below and get some more information. Now, if you actually analyze this, and you come to a conclusion that fuck Leonardo is actually right, then this should make sense to you. This is what 13 Markets Move Formula helps you see as an active trader. See, the reality is while it appears like the market is continuously moving higher, you have high frequency sell-offs. See, when I was showing you this thing, what you were not paying attention to it's a history of bounce sell-off, bounce sell-off, bounce sell-off, bounce sell-off. Now look, these things are out here guys. You're looking at them you're like, "Man, I don't see no sell-off, where is it man? What are you talking about?" Guys, do you see a sell-off right here? Right here, do you see any sell... It looks like just boom, things are just rocketing higher.
It looks like a tiny little barely even a red candle. This is how it actually looks right here. Damn, when did this happen? Well it just happened. It just happened like all of these red sell-off they just happened in the last few days while the market was moving higher. Understanding the formula, buying puts at the highs of the day, would have made you a ton of money. If you're not utilizing this, tells me a few things. Number one, you don't have a thorough understanding of what 13 Market Moves Formula is and how do we actually use it. Number two, you think you have an understanding, you've really never taken the course. You just think that you know it, but you really don't understand the details. Just like I've shown you how to adjust your strike, how to adjust your entry in order to make an average looking trade. What appears to be an average looking trade on the chart actually appear to be highly profitable.
If you're missing these few important details guys, but you really want to take your trading to the next level, guys this is your chance. There's no reason to wait. There's no reason to wait missing another Roku trade, or missing another Hasbro trade. Or missing another market move where everybody's buying calls right here, but 13 Market Moves tell you hold on there's a high probability of a gap down tomorrow. You buy the puts instead of the calls and the market freaking flops 200 points at the open, and you make a killing. While bulls are saying, “I'm buying the dip,” but they ain't actually going to show you the how they're buying the dip. That's the funny part. Anyways guys, this is it. Understand that there's a lot more stuff that an average person actually talks about the market that you need to know if you want to be a high performance trader. I will leave you with this final observation for a week. This is the chart of Roku.
Roku's been in a downtrend meaning that it's created this gap lower on strong volume. Every time it bounces, it drops, bounce, drop. Now it announced earnings report, it bounced and failed and dropped again on what appears to be the highest volume on this chart. Basically what we're saying, when bearish trend in a stock bounces on earnings and turns bearish again, that's clearly bearish for the stock and the market that is comprised of such stocks. Now the question that I would like for you to type in the comments, what do you think it means when bullish trend stocks bounce higher on great earnings and actually turn bearish? Here we have a chart of Shopify. Highly bullish trend, very strong uptrend. All of a sudden the stock bounces almost touches 595 and reverses. It's the same type of the reversal that you're seeing right here. The only exception in Roku, Roku preexisting condition was bearish, so it's no surprise it's bounces and it drops.
Now the preexisting condition here it's highly bullish and it's doing this. What does it mean? Type in your answer in the comments and we'll discuss it in the next video guys. Schedule a call to get all your questions answered. Guys if you got any questions about this video, if you've got any questions about courses, crazy trades and stuff, what's going to happen? Who's going to win the damn election? We got to freaking give you all the answers for free in a 20 minute phone call. Schedule it now. This is how you do it. Go right here. Go right here guys Schedule a call. Click this button right here guys. Check out some more live trading videos, knock yourself out. VIP high rollers club guys, we only got two openings for the VIP high rollers club.
We're entering a very critical freaking situation in the markets. If you meet the criteria, if you meet the criteria for the high rollers club guys, you need to pull the trigger on this tonight. You need to do it this weekend. Life is short, take a step forward today. As difficult as it could be for you, especially you've been trading for years, do it now. Make that step forward today, or forever regret not knowing how your life could have been if you made the decision today to learn the 13 Markets Move Formula, to get better as a trader and never take no for an answer. Fuck it. Let's do this. Let's roll. I wish you guys some awesome results. Next week, I'll catch you in the next trade soon.
But first, guys, in the last video, I promise I was going to give you an answer to this question at the end of the video. Guys, if you're really trying to learn, make sure you finish these videos till the end, because I don't know, if you're a trader and you really want to make some money in the market, I mean you wouldn't do some stupid... Like if you're a doctor and you're doing a surgery and you're trying to learn how to learn, let's say, a new surgery, you wouldn't just learn how to do half of the surgery, right? I mean that wouldn't be an effective strategy. So to me, that would be the equivalent of somebody starting the video, not finishing until the end, and missing some crucial details that could prevent you from actually taking a really awesome trait.
So make sure you finish these videos till the end if you're really trying to learn, or if this stuff is boring, guys, hey, no problem. Just find another channel to watch. Unsubscribe. We're actually trying to decrease the number of the subscribers we've got so we can only pop to the ones that are really trying to learn and make something out of this information. So basically the question that was proposed last time in the last video, we noticed that some stocks that are reporting poor earnings, they create these black candles and reversals.
The more interesting observation was, okay, not only do we have bad companies reversion on bad earnings, but we're also noticing a trait recently where good companies are reversion on good earnings such as Shopify. And this is why even the company ends up positive that day of the earnings announcement. There was a lot more money made on the put side rather than the call side, and understanding that is critical if you're a day trader and you're trading options. Okay? So the answer to this question, what does this really mean? So it's not just bad companies that are reversion. Notice that typical reaction to a bad company would be just a straight drop, but first on bad reports, the companies actually go higher stock-price-wise and then they reverse, and then the good reports are doing the same thing.
Basically guys, the simple answer, put it in a nutshell, it's a freaking market top. That's what that means. So when you see... And I didn't have a ton of time to insert a ton of charts here because I was trying to explain something else, but when you see good companies reporting good earnings and you put them on a daily chart and they look like this, that signifies a market top, guys. And just some few questions for your thought and analysis is why is gold at eight-year highs while stock market is at all-time highs?
Basically we got a solid case of a divergence here. Gold shouldn't be trading at eight-year highs while the market is rocketing to the moon practically, right? So considering that gold is breaking out daily, setting new highs, while the market is pretty much doing the same, this divergence is not going to last and we believe it's going to resolve into the market, actually come to reality in stock prices adjusting lower, and not the other way around. So this is a worthy observation that we're probably going to discuss in greater detail in some of the upcoming videos.
Now contrary to the current belief in the markets that more stimulus actually equals to higher stock prices, we believe exactly the opposite because of the law of diminishing marginal utility. So this stimulus now is not an old thing, and it's been utilized and over-utilized, and at this point it's abused and it's going to have less and less impact on the market in. And I think that's exactly what the market is going to do. It's going to come to a realization that it doesn't matter how big a stimulus channel is putting on, the results of this stimulus, oftentimes, number one, they're not seen immediately. There is always a lag in the stimulus and the positive impact it's supposed to have on the economy. But this time, stimulus... When stimulus was used for the first time, it was effective. Multiple times worldwide, it's been effective.
But now that everybody's using it and abusing it, it's going to have less and less impact on the economy. We're to the point where we can't lower rates. And this could be the reason why, by the way, some of the banking stocks could literally see some strong, strong headwinds going on in the next few months here. So don't expect Goldman Sachs to be trading at this level of 230s. I mean, it could drop back below 200-level because there's some crazy stuff that could be going on. So more on that in some new videos, guys.
And another food for thought here, guys, is why is Warren Buffett not buying anything? Okay, so these investors that complaining, "Why isn't he buying more deals?" And he's sitting on the biggest cash pile that just continues to grow. So why is Warren Buffett not buying? Well, the answer is quite simple. He's not buying because he doesn't buy high and sell low. So I mean, as you noticed, Warren Buffett is not the one out there doing the cheerleading part saying, "Hey, TSLA, 7,000. I'm buying right here at eight, nine hundred dollars. Heck yeah, put me in." Okay, you don't see him do stupid shit like that. Okay? But all the other cheerleaders on Wall Street, they're the ones that are doing that, ignoring the man who knows better what the fuck needs to be done. So if he's not buying, that tells you, maybe it's not a good time to buy, because maybe he's collecting the cash in the expectation of a drop. So then he can really utilize this cash pile that he's been growing. Instead of buying companies now, he can buy them at a much better price here in not-so-distant future.
Okay. So what does the current formula sequence and historic analog of the 13 market moves can tell us about the market action on Friday and Monday? So just to refresh this again, so five bullish days, bullish sequence resolves in three bearish days. Okay, here's what we got. If we go back into history and study specifically what happened, right? I'm just showing you this slide, guys, so you can understand that... A couple of charts, I'm going to show you the historic chart, so when we're looking at dates of 21st, 22nd they pertained to June 2018. So 21st was a Thursday, 22nd was a Friday, 25th was a Monday on June 2018. This 25th date in June 2018 would be an equivalent of current Monday, February 24th. So I'm about to show you some charts and try to overlay them and make some comparisons. Make sure you understand that the 25th is this day that we're trying to compare to the 24th, which is coming up on Monday, February the 24th 2020.
Okay, so here's what happened on these dates. Basically, June 21st, June 22nd, June 25th, okay. So if we were to lay it over, okay, so this is today, February 20th would be the equivalent of June 21st. As you can see, on Friday, which was at the time June 22nd, the market didn't drop a whole lot, so the move on Thursday in the market, this red candle represents daily action in the market, was a greater move then on Friday. So don't expect a huge move Friday, February the 21st. Do expect a bearish move, meaning that at some point something can go lower, bounce, possibly intraday, and move lower, but don't expect a huge, huge crash. Now the crash comes in on Monday where the market gap's down, which would be the equivalent of June 25th 2018 that would coincide with February 24th, 2020, where you actually get a 50 point drop in S&P representing easily about a 2% move.
So this is how it looked exactly on Monday 25th 2018, S&P minus 56 points. Now that represented 2%. So if we go based off the percentage points, now that S&P is actually trading at 3380, roughly, 3370, we can actually see even a larger numerical value. I mean we could see maybe a 60 or 70 point move in S&P. And so when this particular move right here guys. This was just the intraday move on Monday, June the 25th. So this was one day. This does not include what we can get on the 21st of February, Friday. Okay? So here's another situation comparing the VIX that was developing. As you can see the VIX was between 14 and 17. Take a look at where the VIX is today, tomorrow. Guys, check out the VIX environment. It's going to match these numbers. It's going to be right around this range. So we've got a match on the VIX.
Microsoft. You guys know we don't trade Microsoft, we've got better stocks for trading options on. So the reason I've got the Microsoft chart here is because this is what Microsoft was doing on June 25th 2018. Basically this would be the equivalent of me saying, "Hey, this is a representation of a tech sector, and tech sector is about to do this." So as you can see, at the time, the numbers are different with Microsoft, right? $100, $102 was the all-time high at the time. So the numbers actually change. But what I want you to focus on is that the chart does not change. So what we really want to follow is just the pattern of the chart. So Microsoft at that point tops out at 102. This is your move on Friday June 22nd. This is your move on Monday June 25th. Okay, keep this in mind and try to lay it over this... Man, I forgot to insert this slide. Basically, if you pull up the chart of Microsoft for today, you will see identical match on that chart.
Amazon, guys, at the time on June 25th, this is what it did. From 1,744 bucks, which was the high, it basically made this $100 move lower. Here's basically how it looks on a daily chart. So this hundred-point move lower. So this is the 21st, 22nd, 25th. Boom, boom, boom. You got a drop from 1760 all the way to 1640, so about $100, $120 move lower within that timeframe. And if we were to lay it over right now, we can easily still have another 83-point drop in Amazon between February 21st and February 24th. So from here is where we closed today, February 20th, guys, there's plenty more room for Amazon to actually go lower.
Now AVGO, and guys, we've spent a lot of time talking about shorting semiconductor stocks lately. And so AVGO, our favorite right now is LRCX, but AVGO is the chart I was able to dig out from that timeframe. So June 22nd, look, this is where the semiconductor story was right there before going into the drop-off on the 25th. So this is AVGO before that Monday and this is AVGO after that Monday. So a $20 drop doesn't seem like, "Oh it's not that big of a drop," but percentage-wise it's a huge drop. It's actually a bigger drop than what I've just shown you on Amazon. So considering AVGO just dropped today, six bucks already, which was one of our alerts by the way, and it's still got room to go to maybe 295. So maybe not a fortune dollar move here over the course of the next couple of days here on AVGO.
BKNG, if we were to analyze that, 625 was a big move. About a hundred dollar move in BKNG just that day alone. 627, interesting, it continued dropping off. So that is easily about a $130 move. Considering where BKNG is right now, guys, we can still get from current level of 1970, okay, 1970, 1980, we can easily get another $100, $130 move lower in BKNG in the next couple of days here.
And if we take a look at Goldman Sachs, I know $9 drop is not impressive, but of course you got to look at this on percentage basis. You also got to look at what it represents, which to us it represents, if these financial stocks begin to sell off along with the technology sector, I mean, the market could easily drop by 10%. That's what we've been talking about, right? So this chart highly resembles the chart that Goldman Sachs... And even the trading levels. And so this $9 drop basically happens from where? From 231 to 221. Is it a coincidence or what? This is Goldman Sachs today, February 20th. It trades at 232, 231. Okay, so we think it can easily drop to 225, 221. Okay. This is insane that we even got the same price points. Okay?
Now BABA, guys, same thing. Okay. Within those two days it's got a 15-point drop, so we can get an the equivalent of that. I didn't have time to insert the BABA chart here, but you understand how to do this now, so you can use this strategy and calculate some of the other stock. Take that older time-frame, overlay it to the current one, look at the percentage drop, target about the same percentage drop.
So the importance of this analysis is we've seen too many similarities, right? So the technology sector that we have been talking about, that can easily drop by a much larger amount than the rest of the market. Okay? That is confirmed on this timeframe. The financials are confirmed on this timeframe. Gold is also confirmed in this timeframe and VIX. In other words, there's just too much evidence here. It's really overwhelming. And the matches are almost precise and almost perfect. So I don't think as a trader anybody should be ignoring this. This is why I'm taking my time to record this for you guys.
So a big move in gold. As you can see, gold had very bullish momentum going on in June. So that's what this chart is showing you right here. And clearly gold recently had a very bullish momentum as well. So when we compare all these charts and look at some other market characteristics... So we've got similar characteristics in gold, guys, right here, breaking 1620 today on February 20th. Awesome stuff. Okay? And again, it shouldn't be happening if the market is trading all-time highs.
VIX environment... One point from this chart to take is this is where VIX was then in June 2018, so between 13 and 20. A similar thing here, between 13 and 20, but don't rule out the fact that we're going to actually revisit that 20 level on the VIX by Monday, February the 24th.
Okay. Actually here I've got some really cool stuff coming up for you. So what caused the crash, the crash that no one remembers on Black Monday? And it's not the Black Monday you're thinking about, but August 31st, 1998. If you're interested to know how this Black Monday on August 31st 1998 was forgotten, what has caused it, I'm putting an entire video together for you. It's going to be a lengthy one showing you a ton of charts, a ton of historic comparisons, and more importantly the video is going to show you what are some of the similarities we're observing now that could cause the market to do certain things here in the next 30 days to 60 days. So a very important video if you're trying to learn charts and understand things, guys, so make sure if you're new here you subscribe so you wouldn't miss out on this.
Hey guys, if you are trying to learn more, if you have any questions about anything that was just discussed, if you have any questions about the courses, our services, programs, make sure you go to this website right here, Now we've got two locations where you can click to schedule a call. Okay? It's a 100% free call. You can ask any questions about stock market, trading, whatever questions you have. We're here to answer them for you. So schedule this free call by clicking right here, or you can also schedule a call right here, guys. So very simple. Take advantage of this.
Guys, you got to get clarity before you go live putting these trades on so if there's still some concerns or questions or whatnot, this is your chance to do it this weekend. Make sure you schedule a call. We will get a live person on the phone with you. So take advantage of this, because at times we simply have not been able to answer the amount of phone calls that have been scheduled, but now we've got a few extra people that are helping us out with this. So I will guarantee that your questions will be answered. So take action, schedule a call, get your questions answered so you can become a better trader this year. Let's roll. I'll catch you guys on the next trade soon.
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