2024-07-17 09:17:00

Analyzing Nvidia and Tesla Stock Trends with Expert Insights

The dynamic landscape of the stock market continues to attract analysis from experts, who dissect the trends and potential forecasts in an ever-changing financial environment. Recently, a comprehensive stock analysis discussion titled "Nvidia + Tesla Stock Analysis LIVE – With Scott Redler, David Prince, and Derrick Oldensmith" saw these market mavens dive deep into the current behaviors and future prospects of notable stocks like Nvidia and Tesla. Their discussion provided invaluable insights into the mechanisms driving these stocks and their potential trajectories in the stock market.

Introduction to Stock Movement Dynamics

Nvidia and Tesla, two titans in the technology and automotive sectors respectively, consistently captivate investor interest due to their innovative developments and market influence. Understanding their stock behaviors not only offers a snapshot of individual company success but also mirrors broader technological impact and investment sentiment in these sectors. The live analysis by Scott Redler, David Prince, and Derrick Oldensmith shed light on the intricate dance of stock prices influenced by market trends, investor sentiment, and broader economic indicators.

Who Are the Analysts?

• Scott Redler: Chief Strategist at T3 Live and a frequent market commentator known for his technical analysis skills.
• David Prince: Represents the voice from the ‘Inner Circle VTF’, known for melding market pulse with economic indicators.
• Derrick Oldensmith: Senior trader and first-time panel member, brings a fresh perspective from the ‘ProDesk VTF’.

Key Takeaways from Nvidia and Tesla Stock Analysis

The discussion kicked off with a brief legal and compliance nod, setting the stage for an open, candid exploration of market conditions affecting Nvidia and Tesla stocks. Here are the major points deliberated during the session:

Nvidia’s Current Market Position

Nvidia, a behemoth in the graphics processing unit (GPU) industry, recently saw significant stock fluctuations. Analysts discussed the driving factors such as product demand, competitive market positioning, and technological advancements. Nvidia’s role in AI and gaming continues to push its stock to interesting dynamics, prompting analysts to predict potential upward trajectories based on market penetration and innovation adherence.

Tesla’s Stance in the Automotive Sector

Tesla’s impact on the electric vehicle market is substantial, with its stock performance often seen as a bellwether for the industry. The analysis touched upon Tesla’s market strategies, production efficiencies, and Elon Musk’s influence on stock volatility. Insights into supply chain issues and global economic conditions provided a rounded view of potential shifts in Tesla’s stock value.

Market Trends and Predictions

• Tech Sector Volatility: The discussion pointed out that the technology sector is prone to high volatility, which can be attributed to rapid innovation cycles and regulatory challenges.
• Economic Indicators and Their Impact: Broader economic conditions, including interest rates and inflation, play significant roles in shaping stock performance, with direct impacts on investment strategies.

Strategies for Investors

During the session, strategies for retail and institutional investors were discussed. Here are some focal strategies:

• Diversification: Emphasizing the importance of diversifying investment portfolios to mitigate risks associated with volatility.
• Technical Analysis: Utilizing technical indicators to make informed decisions was highlighted as a critical approach in navigating stock investments in Nvidia and Tesla.

Conclusion: The Path Forward for Nvidia and Tesla

Ending on a forward-looking note, the analysts summarized the session by stressing the potential for Nvidia and Tesla to capitalize on their respective sectors’ growth. However, they cautioned about the risks associated with global economic uncertainties and sector-specific challenges.

Viewer Engagement

The live session not only provided technical and economic analyses but also encouraged viewer interaction, helping demystify complex market behaviors for a broader audience. Viewer engagement through real-time questions added depth to the discussion, making it a holistic learning experience for participants and viewers alike.

Lessons for Future Investments

As we look towards future investment strategies in the tech and automotive sectors, understanding the nuanced perspectives from seasoned analysts like Redler, Prince, and Oldensmith will be invaluable. Their ability to decode complex market signals into actionable insights is instrumental for both seasoned and novice investors navigating the highs and lows of stock investing.

In conclusion, the live analysis of Nvidia and Tesla stocks provided a meticulous breakdown of current trends and future predictions, offering a strategic roadmap for investors aiming to maximize their investment in these high-stake sectors.

Watch this video below for the full details:

2024-07-17 09:17:00
Links to Services:

Scott Redler: https://www.t3live.com/scottebook
David Prince: https://t3live.com/dp
Derrick Oldensmith: https://www.t3live.com/blog/pro-desk-virtual-trading-floor-registration-page/

IT’S MAG 7 NIGHT WITH THE BOYS!!!!

Scott, David, and Derrick come together in our latest roundtable to discuss the market-leading Magnificent 7 stocks.

Join us to find out

-Who will win our next game of “2 Truths and a Lie”
-If Nvidia’s dominance will continue
-If the Tesla comeback is for real
-How long Jeff Bezos’ selling could weigh on Amazon
-Which Mag 7 names look great
-Which ones look lousy
-Scott, David, and Derrick’s favorite names

T3 Live Disclosures: https://www.t3live.com/disclosures/

T3 Trading Group Disclosures: https://t3trading.com/disclosure-links/

Video transcript:
[Music] okay welcome everybody it’s mag seven night with the boys um which is an interesting time to have this because iwm is taking off but um we decided to get together and figure out what is going on in this market so of course we have Scott redler from the Alpha Team vtf we have David Prince from the inner circle vtf and making his first appearance is Derek Olden Smith from the prodesk vtf so we have to get all the disclosures all the legal stuff out of the way so our wonderful compliance department will be happy with us they won’t call me up tomorrow morning and yell at me so how is everybody doing out there Derek first how are you today I’m doing great I’m loving this Market recently okay we are going to get into to all that so Scott how about you how are you doing a little tired at a golf outing yesterday a little Charity outing I was uh out to about 11 o’clock in the at night and then I was up a 4 I drove to the office but um all in all the market actually makes it a little bit easier but you know it’s uh it’s always interesting so uh we we’ll we’ll we’ll answer a few questions after this okay David how are you doing I’m like Derek very pleased very happy very grateful it’s been a beautiful Market okay great every every body in the chat so we’re crossing about 500 people right now we expect to get up to 6 or 7,000 but let us know where you are watching from are you in New York New Jersey or you overseas let us know where you are from we want to make sure this is interactive we want to have a little fun so let us know where you are from so help spread the word like comment subscribe and share of course our good friend it is in the house it’s always represents we have somebody in timbuk too wonderful glad to see you guys so today’s program so we’re going to do our fun game of two truths and a lie we’re going to talk about mag 7 iwm obviously the Hot Topic that’s going to come into this favorite mag 7 name’s least favorite and everyone’s going to share their number one idea right now so check the video description down below for links to everyone’s services and if you don’t know the Mac 7 are the me mega cap Tech leaders Nvidia meta Tesla Amazon alphabet Microsoft and Apple so we’re going to start with two truths and a lie and everybody on this call they are going to compete Sammy abuad was the champ last time and we want everybody in the audience to participate too so I’m going to make three statements one of them is a lie so try to guess the lie so we’re going to make I’m going to make three statements so number one meta is the number two mag s name in 2024 Tesla is the number one mag seven name in July third one is Google is the worst mag s name over the last 5 years so everybody type in the chat which one do you think is the lie and of course Scott Derek and David what is the LIE number one number one’s the LIE Scott David I would I I think I think number two is definitely a truth I think Tesla definitely had the best gains in July um I could see go you know I also could see Google over the last five years but um I’m just going I’m just saying safe I know number two is a truth I’m not going with the LIE uh one’s a lie I’m going with one’s a lie okay Scott Scott which do you pick Scott which is the LIE oh I said number two is is is the truth he’s he’s being Swiss he’s refusing to give you the LIE points in July all right met is the lie too I’ll go with I’ll go with my smart buddies who know they they have conviction whenever Dave Prince and Derek have conviction I don’t even have to think about it I’ll just go with them one the LIE okay every okay you guys are all wrong Amazon is the worst name over the last five years I knew it said that yeah me too Rick freed Rick fredman in the chat is the champion so Rick you you win you you don’t get a prize but you are the winner so um so very quickly so guys uh Max seven stocks have been huge the last couple years have been leading the market obviously everybody knows about Nvidia so we’ve seen this big Trend in July all of a sudden iwm taking over so Derek I’m going to throw the first question to you um how would you describe the environment out there for big cap Tech um relative to iwm yeah so this Market’s been great I mean this is the move that I really started looking for coming into July as we know a lot of new money rotates into the market in the beginning of July every year first two weeks of July tend to be the strongest period of time for the year historically and it just made sense because the outperformance on the q’s compared to the iwm had become so incredibly incredibly stretched that I thought it was just a matter of time before a catalyst hit that triggered this exact move that we’re seeing in front of us so the degree of the move is not surprising at all the speed of the move after today I mean iwm up another three and a half% today is starting to become a little bit impressive I’m looking for this rotation to continue not in a straight vertical line like it’s been the last four days we probably need some healing some rest to pull back some digestion in the iwm but there’s still a big performance difference that I think the iwm could play some further catch up on and the big thing is people need to understand I think is a market structure situation with the S&P the gamma the positive gamma in the market is so huge right now that it’s creating this rotational effect for a while when the cues were going and are basically just being led by three stocks the market cap of those stocks is so big that by definition the rest of the market couldn’t go with the S&P gamma being at historical all-time Highs but now if those MA s stocks actually take a rest or God forbid pull back I mean the this earning season that we’re coming into the expectations for those companies is just massive and I think that you’re going to continue to see this iwl performance I I I like value names I like energy stocks I like the worst charts that are out there right now these beaten up growth companies that are down 50% on the year but have created nice bases that they’re breaking out of in this move I don’t think you can chase 225 in the iwm right now after this 4-day move but look for the pullback look for the bull flag or the the the pivot low to you know potentially re-enter okay Scott so how Scott how are you viewing the action out there I guess specifically with these big cap Tech names first let’s go back to the iwm because I feel like you know I’m on social media also I feel like everyone on Twitter should be retired because everyone just caught 20 points in the iwm everyone was in a 2011 and held it to today or maybe even to tomorrow which I think if you if you’re upset with your the way you handled it don’t be because I think everyone’s full of crap to be honest um you know I know me I I feel like I did a decent job with this you know I bought options and I was in at 2011 and if you look just might go to the Chart reel here at 21495 that was uh two days ago right here I feel like most Traders probably caught this move and to me I was kind of excited I’m a professional I’ve been doing this a long time I caught that move and then I feel like this day which was yesterday was the day that probably if you were long and you sold a lot of it you got a little upset oh wow how many iwm calls that I have or I was in it you know some people probably started shorting this day thinking that it was a topping tail and are probably I would say 25% of Twitter is probably short the iwms right now and and not long anymore but making it like they all got rich long the iwm for me you know I like to try and talk tactics like you know like uh like DP and and Derek and at this point I’m not let’s not make like we’re on Fox Business or CNBC and talk about we’re gonna buy a pullback on the rwm the out of performance can continue it’s like no are you cing a pain trade and what happens if it’s up another five six points tomorrow are you still long and if you are maybe somebody hit you over the head because it’s hard to be long you know you probably fell asleep for three days you had to take some off and and how do you handle the trade massaging and moving forward I know for me today I started getting short the iwm and I’ll admit it my average cost it’s a 22486 I’m probably short from 223 but I didn’t start at 2:15 and I didn’t start you know at 218 I didn’t start I start I’m like my average cost is 223 and if we’re up again tomorrow I’ll trade around it um if we go up another daylight today you know you’re gonna see a pain trade that’s not that’s going to knock the teeth out of out of Traders I would think um and as far as you know the mega cap Tech trade I just think you know it needs time to rebuild it’s not where the focus is we have two weeks to earning time if you’re looking to take any of these names into earnings 50 points or more off the highs is the time to buy some options you know and then so this week can be involved for earnings if you think earnings are going to be good okay okay so David um we were talking we were talking with um Jr about a month ago I think and you were very bullish on iwm and how do you feel about it up here and I guess versus Big C Tech going into earnings sure so first off I want to say I think Scott’s right right I mean we all have people we mentor and we’re around every day I can’t tell you how many people I literally made on inner circle I did a roll call I said who’s listening to me and staying long iwm because of what Scott said right like everyone kept thinking this move can’t go it can’t go it can’t go and I made everyone raise their hand um only because I’m not a big fan of the market and my Alpha has been coming from size on specific catchup plays and iwm was the best one I had left um so uh I want to make it clear I think a lot of people thought oh my God this won’t last oh my God it’s 75 relative strength it’s time to short oh my God none of these companies earn money oh my God this shouldn’t be happening it’s too easy to buy Nvidia there were so many oh my gods I think Scott has it right and I bet you there are a lot of people who started short um I I want to make something clear though that worked for me we are in a market where there’s so much outperformance right from just a few names that if you go back on your film and see what we talked about I said when iwm goes Michael and I’m curious if you remember this said it’s not going to be slow and no one’s going to catch it and it’s going to all happen in a matter of days or weeks just like October November December of 23 do you remember when we chatted on that yeah okay so we are literally doing the same thing we haven’t even had as a percentage quite the same move we’re getting it now I like these guys would not go out and buy it out here but because of the size of the move and I want to go over a few things because the iwm is minuscule a lot of people don’t realize it’s like $60 billion doll market cap think about that think about Nvidia right think about Amazon think about these trillion dollar market caps we’re talking about 65 billion by the way the three of us together could move a $65 billion doll market cap I’m joking but you get the idea so I think part of what happened here is people forget how small small cap became and thus misjudge the size of the move I think we’re not on Fox like Scott said so I’m not going to be like cute and be like I’m buying a pullback but I will say I don’t think this move is done I hope there’s some volatility I hope there’s maybe a hot number to cause it maybe it’s poor earnings maybe it’s a political event and whatever that event is we’ll go back to the charts Which Scott is an expert in and probably use some pivots like a 218 or a 2115 I have to look on ID to start adding risk I can tell you I have been long the whole time can I ask a question yeah sure just for all of us so so at this point because we always talk tier systems if you which you were long I know for facts I heard you all iwm’s below 205 here 224 how much left do you have of the trade that you put on not a trailer but 20% and no stock so fair question no stock only exposure and options so which strike would you have so I took so first it was 205 they went so deep in the money that yesterday at 218 I went to 220 those got absurd today and I to 230 you’re in the 230s now yeah and I did August though so I bought myself time so if we do have a pullback they’re not a zero I anticipate a pullback and I’m rooting for a pullback and I went with options because I like you think I’ll actually be shorting the stock tomorrow I’m running a fund there’s nothing wrong with being able to short the equity and staying long the calls because I’ve learned every time I try and catch a top I miss it and we keep getting these Alpha trades may I mention Tesla that I I never dreamed I’d see 270 maybe 240 250 so I learned from Tesla which I was in but sold too early and then went to AMD which I was in thank God didn’t sold too early they’re kind of I wanted to ask you guys this and I’ll shut up but I want to monopolize I feel like it’s the same trade in a different vehicle over and over and we have to be cognizant these catchup plays could be fast and furious because AMD wasn’t quite Tesla likee but it was big and now iwm’s doing it so we got to look for valuable vehicles that have yet to play catchup yeah to to answer Scott’s question that he just threw out there I probably still have 60 to 70% of my long exposure related to the iwm iwm it’s not the iwm specifically it’s stocks that are correlated to the iwm I have that too that’s impressive long positions on but today I started shorting the iwm to hedge myself out for that I think inevitable technical pullback that has to come after such a fast move so so so you know so quick but I can continue to add on to that as I decrease the exposure that I still have which is still relatively heavy to the iwm if we get a day five tomorrow which if you look back to 1979 there are a bunch of other periods where the iwm has given four 1% plus moves in a row there’s about six where it’s done it five times and there are two occasions in which the iwm has gone up six days in a row more than 1% it’s not impossible to see a day five day six at the same time the stretching here is getting so big that it makes sense to take start taking some off the table or my case I’m still pretty heavy long but building into the iwm for a shorter term swing trade pullback at the same time and I just want to say underneath is different to me like I my baby immunome which I know Scott’s been in look at the chart I’m sure if you punch it up you’ll love it it closed above the 200 day for the first time in several weeks today and it’s not overbought it’s probably going in a straight shot to 17 so there’s stuff underneath that I’m not out of but then my other small cap baby Zeta run by a dear buddy mind David Steinberg that just ran in a straight line from 15 to 20 so I got flat that so the point is yeah I still have exposure underneath right but I think we’re talking iwm it’s late in the game to First buy it I wouldn’t be buying without a pullback and I’m much smaller but thing and then we’ll move on sure because again this is a trading show people who watch us want to trade and want to learn how to make money so two awesome things that both these guys went over is one DP talk about how he was buying the 205 calls and then it went 10 points he took that off the table because there was a lot of equity there then rolled it up to maybe a 2115 a 220 and then a 230 because that’s what you do when you’re trading a move you want to stay with it but you keep taking higher L premium so this way you’re not at risk if you get a pullback so that’s what when people like I’m rolling up options that means he made money four different times and had less risk at each moment and then what Derek is saying is he’s long I don’t know he’s at 20 plus positions in the small caps but now that the iwm is all overboard he doesn’t mind he doesn’t want to get rid of his positions but he’s shorting the ETF iwm that correlates to it to maybe make some cute cash flow so if the iwm comes down he’ll make money short the iwm and then he could buy a dip in his key names so these are ways that Traders make money not just talking about on TV you know I’m waiting for I’m casually optimistic or cautiously optimistic waiting for a pullback this is what you have to learn how to do if you’re going to be trading for six months two years five years 10 years and it takes time and these guys are the most fisticated out there okay all right um I think I want to build on something um David said about the the these sort of things that just end up running away so I we’ve been hearing that MA 7 too far too fast for over a year now and they’ve just at the end of 2023 a lot of people are saying okay they’re done now they can’t go more but is there a chance we could say and I’ll throw this question out to everybody could we see iwm at 275 or 300 in the next year as part of the same theme of things running further than anybody thinks sure I I’ll just say I just put put the chart up real quickly this is the weekly chart of the iwm we just showed the daily so let’s real quickly just go there so in 20121 November 8th the iwm was at 244 so why can’t he get to Le 244 and right now it just got into what a lot of our friends out there talk about like U Supply Zone the supply zone so that’s why I felt comfortable shorting it to here kind of get to 232 first that would hurt but right here this is where it spent most of 2021 before breaking down so 224 is the top of that so you know I I you can’t just throw out a number like people like 275 or 300 the iwm I’ll say let’s go with points of reference right now we just got to 225 the next spots 232 the next spot above that is 244 so every time one of these ETFs or sectors get to New points of reference you kind of look at the composure and how it got there and how it acts before thinking about the next potential spot so these would be the three spots 219 was a spot but last too long so now you have 225 232 244 so that that’s how I would you know basically break down the the iwm moving forward if you’re trying to play verse spots and stay Scott you know when people are like oh what’s your target at the end of the year I’m like what the hell how do I know what happens what if earnings are disastrous what if subprime blows up let’s worry about the next month or two and targets Scot’s talking about because six months from now we might actually have found out that all all these you know powerful rate shocks have finally hit us even though they’re lowering rates maybe the economy is slowing down so I’m like Scott I’m like I see 232 and I saw 240 but I’m not as good with charts as Scott so I’m not exact right and I’m worried about 232 and 240 I worryed about 275 down the road by the way quick thing it’s still only up 12% versus Q’s up I know the dog versus Q’s up 25% so it’s like nothing as a percentage for the year it’s not like it’s doing unbelievable yeah also 100% agree with Scott uh could could the iwm go up another 50 bucks by whatever period of time you just said sure anything the one thing I’ve learned in my time of trading is literally any thing can and will happen if you’ve been in this game for long enough but we got to take it one step at a time here let’s see what what the market looks like at the next resistance levels let’s see how the current degree of extension that we now have in the iwm after this 4-day move satisfies itself it could become even further stretched even further extended but it’s basically a law of nature that you can’t just go straight vertical forever so at some point there will be a price correction in this move and then we’ll really be able to see I think if it has legs because like David was saying earlier if you get that pullback to that you know 218 or whatever and then the buyers come back again and it wasn’t just this one squeeze phenomenon that’s when I think that you know you’ve got a real move on your hands a real rotation move that’s more than just uh a Fly by Night couple week squeeze and that tends to be what my thought process is I think that’s what’s going to happen but we’ll assess the technicals as they play out over time okay all right so Derek I’ll actually throw a question right back out to you then because it’s related to this topic um so I there’s an interesting um comment crack until I die says don’t compare day trading versus longer duration forecast so Derek do you think trade at least let’s call them active Traders are wasting their time even looking even listening to these sort of longer term year-end price targets yeah sure I it it goes back to what what David was just saying I think it’s the when you get to to January or you know end of December beginning of January every single year and you got CNBC on on in the background I I try to never have CNBC on in the background because 95% of it is is a waste of time and I don’t even want to hear it these people who at the beginning of the year give their end of the year prognosis you have absolutely no idea what can happen over the course of a calendar year so if you’re actually a money manager you’re not just out there making these Grand statements on how much up or how much down we’re going to be over a long period of time you’re out there trying to figure out the appropriate way to manage your money to make more money over time based on the current circumstance of the market and the highest probability of the next move based on the information that you have in front of you would you say Derek because I told someone about this yesterday I always say it’s really simple I don’t worry about the end of the year I worry about from today on where can I Garner the most reward versus the least amount of risk and that’s what that’s what we do that’s our real job have to figure out in eight months where it is over the next four to eight weeks what has the least amount of risk with the most amount of reward three days yeah or that of course the time frame that you just said so so I I like that time frame that’s kind of my that four to eight week time frame of you’re kind of incorporating some macro with the technicals and then from there you begin to break it down into your smaller execution time frames on okay I have developed idea I’ve developed this this thesis or thought process now how do I actually put that to work and that’s really where I think your technicals come into play you know your your big picture charts your weekly charts or your your fundamentals can tell you what you want to be in but it’s your technicals that tell you how to actually execute that manage the risk and manage your game plan to maximize the reward okay all right so we just covered time frames so let’s get to what everybody actually likes right now so we have Netflix on deck on Thursday everybody starting to price in a Fed rate cut so I want to go around and talk about what everybody actually likes right now so David we we’ll start with you what are you liking here the one thing it it um it’s wored for me since last Thursday I got aggressively short the cu’s less so now um it is to consistently have several shorts on I know they probably didn’t think that was going to be part of the conversation but I came in with the average cost of a short on Q’s on Thursday 498 I add a lot 501 and rote it down and I keep going back to it via puts or stock uh for several days because I I just anticipate more pressure maybe TSM maybe asml will change that but I see more pressure on big cap Tech um in terms of what I like I like what’s underneath iwm so imuno a baby of mine iwm doesn’t go without xbi going look at the last seven days in xbi it said it’ be over 100 here we are1 almost 102 right um but take a look at where iwm you where xbi was do you guys realize where xbi was several years ago it was 175 so I think xbi on any continued momentum in the market is 125 and it’s not near alltime Highs but still has a 25% move which then tells me that a stock like IMO with a 10 million share short with one of the most important CEOs ever in biotech that was just $30 after we bought it at seven that’s finally over the 200 days probably going to 17 or 20 so I’m a buyer of iw1 pullbacks right here right now I see as many shorts as I do long one of the few Longs I see that has yet to click and get overbought Zeta went for me uh envx went for me the one that’s yet to click that it’s up 25% the past few weeks but compared to other stocks that’s nothing imuno imnm okay so I’ll pass over to uh Scott what are you liking here well if you’re if Jr was on here he would say you know it depends on the morning depends on the moment depends on the day and I have to say that right now myself because I am also kind of tactical right here because you have all of these divergences you know like I also I was shorting Q’s premium last week because it was so overbought and I wanted up making good money short the cues because the shoes didn’t make you know the qes didn’t make a higher high and started to diverge on Friday so if you’re looking to be long a few things and short a few things you know right now the q’s probably need to rebuild the same way the semis on June 20th so but today like you could had day trades you know and not had to be so smart like if you go to the Chart here at Tesla let’s talk Tesla because we’ve all you know there’s big money trades and then there’s tactical trades so the Big Money Trade which a lot of people bought and caught here in all of T3 live land was when Tesla was right here getting really tight and it looked like it was going to get above 191 and 198 that was when you know you had the big money trade and then kind of like the iwm you know people probably got out of I know I was out of Tesla somewhere into the 230s I sold it like a bozo that’s not a bozo 190 to 230 40 points as an active Trader and the options were up 34 500% you’re like okay that’s fantastic you know I think though people started taking the other side of the trade probably right around here you know kind of like maybe if we a little early iwm and then you had the Red Dog reversal top right here where it couldn’t you know couldn’t get above and stay above and that was your short last Thursday and since then it’s just been a trade like today in my active account I made really good everyone knows I’m not a great short but this morning on the Ala team I’m like guys you know Tesla you know was stickier yes I bet you goes from Up three to down three and if you look here at Tesla Tesla without any position on because it’s rebuilding you know Tesla opened up and went from right here if you would have measured where like just some resistance was which which it bounced back to right into here it went from up three4 to down 405 and I was done with this trade at 10:05 I did the exact same trade VI a puts really good money on that and then other people have been like hey you know I want to take the other side of the trade they want to making you know went from down five when it started to be down three they went from down three to up three they made $6 the other way so you could be like either no tell you don’t care what elon’s saying what’s going on you trade the ranges and you could just went right back to where it was so you could have made five to eight points either Which Way but what you what you had here is different methodologies so here you know you had uh 252 so here you had a topping tail so it opened up you could have shorted broke added then it held the E day and we all know if it holds the E day it’s usually a strong stock that used bable went from here went back up and now it it Tesla could be creating a different type of money trade because it just digested so you know and it’s building a little bit of a of a wedge in here so it’s kind of interesting right this is you would say that it just went to 271 and just Consolidated and now you have you know another wedge which is you know digesting what this move has been and then you got to say Hey you know day trading wise tactically it might be over because now we got to look at the weekly chart and if you look what’s going on here on the you know on the weekly chart um which it’s also lagged it’s now building like a bullish type flag here where you know why can’t like this I haven’t looked at the weekly chat you know chart in a while this is now done this is irrelevant this is irrelevant now you know it kind this is kind of irrelevant so now this is your next level of you know if you think Tesla’s going to you know 298 now it’s building another area this was Money Trade One digestion two get tighter and then you focus on it going into numbers you know gets you know hangs in here gets above 271 then it’s 299 to actually even higher like three to 312 so again like we said with the iwm you start mapping out areas that you know that are points of references so you could see where you could belong to and where you should start you know figuring out if it you know it’s a little harder to beong there or maybe you know has prior resistance so this would be this would be your next zone so for Tesla if you map it out you had your money trade now you have your Tactical digestion here’s your new void this is the next Target if we can get above this you know this 271 area and let the moving averages catch up so I think mapping things out and doing things like that as an active Trader and also with a swing trade methodology that’s what’s going to make you money and ways that Dave Dave’s from the he’s from the hedphone world so he he likes ideas he knows who the CEOs are he know knows what the earnings are he knows what’s going on so he’s able to stay with things with size and have projections and know things more than the average Trader but when you put a all all that together that’s how you make the big money um but if you trade tactically for a living we could kind of do that by using the daily chart the five in the three and the you know 15 minute chart and then you go into the weekly chart and that’s how you you know put all the time frames together figure out your sizeing one thing on what he’s talking about because there are a lot of Traders on I agree with Scott though bottom line when the range gets this wide it’s a blessing like let’s take advantage of it we don’t often I was short Tesla last week I shorted a bit early then Friday I got bailed out and killed it and by the way that was Thursday and then Friday morning at 2:33 I’m buying it and 2:34 2:35 and by 240 I sold it too soon like I always do but I was like this is crazy I caught the top I caught the bottom let let me be it alone so I’m walking you through this because then today I’m counting the points and going 256 257 clearly Tesla put in a top that I’m sure of to earnings so now we’re bounc 25 points off Friday oh is risk reward good for a cash flow trade to get short sure bought some puts they went up like 60 70% so I agree with Scott just simply put for Traders we’re blessed with this wonderful volatility and a few stocks take advantage of it okay we’re gonna bounce over to Derek now so Derek uh what are you liking here if anything sure to to a compliment to both David and Scott if if I could combine what they both just said you would have my perfect answer there um I am kind of in agreement with David on these mag seven stocks maybe needing a little bit of of a Break um and I think that that can enable the rotation but I also am entirely in agreement with Scott about having a tactical approach to this market right now and how you position yourself and knowing what your time frame is is as a Trader in order to best position yourself what I’m loving more than anything else right now is just how good the price action got again because we had days in June where you know sure we can find stocks that are in play because they got an upgrade or downgrade and we can try to day trade them for cash flow but there were a lot of days in June where we were just flatlined on all three indexes it was very very difficult there wasn’t a lot of opportunity out there and now I’m in a market environment where the traders that I’m working with on the team you know this guy is making money on a quick cute little short and then in the exact same stock this lady is coming in and buying it and and catching the dip and making money on the other side of the trade that means that the price action’s gotten really good the opportunity is really out there again and I’m loving it you know I like to take that big picture and then dive down to the small picture to figure out how I want to be in and how I want to position myself and then I need to surround myself with an understanding of Market structure and that would be the the one add-on that I don’t think we’ve spent too much time talking about is that we are in a very unique environment structurally I don’t remember ever seeing until the last two months here an environment where the q’s and the iwm are almost trading perfectly inversely to each other sometimes literally on a 5minute chart if you’re watching those two charts next to each other you will see when the qes are up ticking on a five- minute chart a lot of times the iwm is down ticking on that same exact five minute bar I’ve never seen that before what is creating that and that’s why by the way a little bit bigger picture we were able to all of a sudden get this huge move in the iwm right as we actually got some QQQ weakness and Nvidia and all these other stocks took a little bit of a break I think that they’re going to continue to take a break as we come into this earning season and that can enable the rotation to continue just because the structure of the S&P right now is it’s not able to have these really large moves therefore you have a dispersion trade that’s creating these winners and losers and when it’s all the mag 7 stocks that are going the other 485 stocks in the S&P or whatever they they can’t actually run because the Spy can’t lift the S&P hasn’t been able to have up 3% days it’s an upside grind every day because there is forced selling in the S&P into the up move which therefore means that there has to be rotation under the surface you realize that individual stock vol right now is 4X higher than Market level volatility that’s that’s also a very unique Market situation that we’re in right now I think that Traders need to understand that when they’re positioning themselves and it enables a move like the iwm to go much further much faster which also goes back to a point that David made earlier that I this iwm move is like historic in terms of its speed and it’s not 1% days it’s 3% days I mean the the Russell here is up another 3 and a half% today on on a day four it it it’s really mindblowing but it’s entirely because of how Market structure is and this move couldn’t happen if Nvidia wasn’t taking a break right now because all the money can’t it’s all pumping into Nvidia Nidia takes a break you can finally get this money to go somewhere else everyone’s looking for Alpha all the hedge funds right doesn’t matter if it’s TPP or Atman I mean we all know uh what was it gunlock who who was it who’s so big in iwm uh uh it wasn’t gunlock it was the it was Tom was it Tom Tom 40% Tom Lee’s not running money I mean Tom Le yeah called it uh whatever you guys come on someone write in the chat one of the largest best hedge fund managers in the world anyway the point is I think it’s a lot of the same funds all Chang chasing Alpha so we know like what’s happening it’s it’s not like iwm is not a bunch of retail people trust me there are a ton of hedge funds that just took profits and tons of big cap stocks druck and Miller thank you brother so I mean it’s the same game over and over and people are chasing Alpha and the question is how far can these things go I want to say one quick thing I’m not against buying like I I don’t look at all and I know we’re going to talk about a mad s the same so if we get an opportunity I’ll be short cues and I’ll still go long a Max seven name I’m still long Nvidia from the last time it got crossed when it was 117 and if we see a spot like that again I’ll get long so I am open to opportunity I just gota you know I Gotta See opportunity and I don’t see a ton in big cap hopefully it’ll come I’d love to see some weakness and Nvidia uh Amazon looks like there might be some weakness coming and I’ll get aggressive again okay all right I’m gonna I’m gonna call a little audible here because uh David interesting so you said that you might short cues being long while being long some other Tech names so I’ve I’ve had this question with other with Traders I’ve gotten some very strong opinions on this both ways so D I’ll start with you David why hedge why not just own less of something like if you’re gonna if the idea of I wasn’t hedging so it was a great question okay but let’s let’s go through the details prior to the CPI on Thursday I was like wow this is insane I don’t really love Nvidia but I’m trying to hold some this is insane not in love with Amazon because Jeff is selling me his stock every day but I’d like to hold some Amy nome’s going to break out Z keeps going higher but I want to hold some I I don’t love the state of the market I’m okay putting on a hedge so if we do pull back I lose less of my profits that was pre CPI after CPI I want to make it clear and I’m going to guess these guys are the same that was not a hedge that was an offensive short and I continue to put those offensive shorts on not Hedges on by a queue I did it yesterday with 495 puts I I uh made like 40 50% then at the close we got a quick little bounce I put them on again today took profits so right now it’s less of a hedge I see offensive opportunity being short big cap Tech Micron broke broke an important average today it’s one of the first stocks I mentioned on my morning call I know Kira was shorting it it was not a hedge it was an offensive short right Micron broke didn’t look very good so a lot of what I’m doing with the qes is less about hedging right now my hedge tomorrow will probably be it or not shorting the iwm with these guys so I can stay long my calls okay right d Derek so I’ll I’ll sort of throw the same question to you so you said you’re long a lot of small cap tchs and you’re short the IW I’m against it why not just have less shorts on because if the positions are working against each other anyway why even bother with the iwm sure I I love this question because I think it gives something that the listeners can really learn from from a a trading perspective so um some years ago you know throughout my my my trading Journey it’s been a long journey at this point I’ve been doing this since 08 since 2010 with T3 I’ve been with T3 for 14 15 years now uh at some point in my career I started to get in my head as I started to swing trade more the idea of hedging and it was like all right you know I’ve got some Longs on so why don’t I just short some some spies or short some cues and what I found was that that just became kind of a big drag on my p&l because I’m long these stocks for a reason I’ve got the idea that these stocks should be moving higher and then I’m just nervous that I’m making too much money so I would just short some spies and short some cues and I would just kind of waste some money doing that so I I I abandoned that and then for a while I would say well you know I don’t hedge that was my next thing I don’t hedge I trade to be right I trade to be wrong now the final third step of my Evolution which is where I am now is I wouldn’t say that I take anything as like a direct hedge anymore I take trade but a lot of the times those trades have the impact of also hedging other positions that I have on and and and that’s what I really like to do uh so you know that’s what I’m doing right now with my iwm my iwm is is a trade it’s it’s not a hedge it’s it’s very specifically a trade but I also understand the impact that it will have on the overall pnl and I’m also trading different things on different time frames my iwm trade is meant to be a shorter time frame swing trade maybe a you know we’ll see what the market actually does and how my gain plan works out but I don’t really anticipate to be in this iwm for more than a few days at this point Max and it’s it’s just a trade based on the extension in the market after having such a large move and if anything the fact that I’ve got those other Longs on lets me give it a lot looser rope because clarify you’re talking about your short my my short in the iwm that I have on right now it it it it’s it’s on as a trade uh but I have the benefit of being able to build in and I’m not worried that I’m down a bunch of p&l in the iwm as of today’s close because I’ve got all these other Longs on that are still more than making up for it but I also feel that at a certain point this iwm has to have a pullback it’s almost a law of nature you can’t just extend and extend and extend away from the adma forever you can go for longer than may seem rational that’s how markets work uh but at a certain point you have to have a pullback and that’s where the iwm trade comes in can build back into those other Longs that I’ve also pieced out of on on on on the way up so they’re trades for me but they have the ability to also head swings of my p&l at the same time and and and make me money on different time frames I can I just add to that for one second for him because I think I also know what he’s trying to say like you you hear like on TV everyone’s like oh I’m a long short fund or I’m a you know for every long I need a short so Derek saying Derek was long the small caps for probably four these days and now he’s trying to be cute the way some of us are saying hey we’re on day five now this is a trade from here that I could probably make money short the iwm um and then also be able to buy some of my favorite small caps as they rebuild and pulling because they probably had big moves and you’re staying engaged sometimes if you just get out of a name because it’s up four or five days and you’re not in small you’ll never get back into it so as Traders sometimes you you need to have a little on and be wrong in it so he’s is trying to say hey maybe I’ll be a little wrong here but the iwm little pullback will make me money short and I’ll be able to make more money in the positions that I like as these patterns rebuil but by no means was he shorting you know the iwm’s at 207 and 210 and what saying hey I’ll be up 20 18% in these small cap trades and I’ll lose 3% in the iwm but it keeps me in the trade now it’s at the tail end of a of a daycount rule we all try and figure out how to make money both ways you know and hopefully not start too early and hopefully have the ability to stay with it you know if things get a little sillier which they might in the next day or so that’s exactly right thanks okay got all right um okay guys I think that’s a good note to end on we’re just about 45 minutes and you guys want to do one less trivia question before we go not if we’re all gonna get it wrong okay okay all right okay the this next one I think one person will get and the audience please participate also what has it bigger market cap Nvidia or the entire Russell 2000 that’s easy I already told you that 10 times what’s Nvidia is like what three trillion and you said the Russell is like 600 million billion it’s not even close Russell 2000 just a little bit higher I just looked it up it’s not true unless my math is is one’s 50 60 billion one’s trillion they’re not even remotely in the same category no there are I’m looking at the entire Russell we will we we will take this up we will do a formal announcement on Twitter uh what I look it up the iwm market cap is 63 billion yeah I’m seeing 63 billion for the iwm I don’t know if that I’m not I’m not talking about the value of of the iwm ETF I’m talking about all the stocks in the Russell 2000 oh I’m talking gotcha you guys are all wrong again I’m like no no I know I’m seeing everybody’s wrong again everybody in the audience is wrong again nobody everybody’s a loser today except for Rick Freedman he’s the only winner we have on the call today okay so guys so so before we leave could you know we I I just want to throw out one chart that I think is Worth showing out you know as a as a play that’s still a play it’s not a hedge like I’m not a you know metal guy or this and that but like we had some good trades in gold and silver this silver to me looks like it’s been in this channel since since uh you know since May and should be able to take out the the high of 2956 if you look what gold did today you know gold took off Gold’s in an all-time high silver usually lags I just think you know what I’m saying I I went out and bought $30 calls today for um I’m also in silver so all full just go for July 31st so I think if you know within two weeks this takes out 2956 you know why can’t this thing be 32 or so um so it’s just a this is something that’s not like a massage it’s you know silver is really not a trade it’s more of an idea and I I think that you know I think this SLV could be within the next two weeks those options that I bought today for like 25 cents you know could be a triple or more and we made that as a power on a triple I’m paying attention Okay yeah SLV made it into Power plays today so people are happy there so guys so let us know in the chat should we do this again yes or no just type a yes or no let us know if want us to come back again and tomorrow at 12:00 p.m Sammy abusada and Jr Romero we’re going to be talking about earnings and guys click the link in the video description we have links to Scott Derek and David’s Services down in the video description and we’ll be back again soon everybody have a wonderful evening