Welcome back to Market on Close. I'm Tom White filling in for Marley Caden. It's time for options corner.For that, we're going to bring in Rick Dat, lead market technician here on the network. We're talking corewave, one of the big movers of the day. Uh Nick uh Rick and this is based on some news that came out out of city group but and you know what there's a an article a couple days ago out of the Wall Street Journal that everybody was talking about the AI bubble and coreweave is at the top of the hill whe ...

Trading Strategy - The strategy involves identifying overall trends that can develop over several hours [1] - It looks for fair value gaps that break through the trend, along with critical support or resistance levels [2] - The strategy considers the previous day's low relative to the current price point [2] - Entry is considered after a response from a specific area, aiming for price movement towards a target level [3] - Risk is managed by reducing it in conjunction with the identified trend [3] - Stop loss is adjusted in trend, following the trend level to lock in profit [3] Risk Management - The trader has been trading for eight years [1] - The strategy involves waiting for a response off of a specific area before entering [3] - Stop loss is walked down into profit to reduce risk [3] Profit - A trade-off of $2,700.17 was mentioned [3]

Trading Strategy - The strategy utilizes support and resistance levels to identify key market areas before price movements [1] - It aims to find areas where supply outweighs demand or demand outweighs supply, visually represented on a chart [3][4] - The analysis helps determine if a price will continue in a trend or break out into a new trend [5] - Drawing accurate trend lines on charts is crucial for actionable trading strategies, identifying areas where price bounces repeatedly [7][10] - Parallel channel tools can be used to anticipate potential continuation of a trend after a breakout, identifying high-probability areas for demand to outweigh supply [23][25] Risk Management - The strategy involves setting stop-loss orders outside of identified trend lines to contain risk if the trend doesn't follow the anticipated direction [31] - Traders can leave take-profit orders open-ended to allow profits to run while capping the risk [31] - Reducing risk over time by trailing stop-loss orders based on new highs or lows is a key component [34][39] Performance and Examples - The presenter claims to have had one of the best trading months, with over $20,000 in profit in one week [1] - Examples are provided of trades where risk was managed, and profits were allowed to run, resulting in significant returns [41][45] - One example shows a trader achieving a 34x risk factor on a single trade, resulting in a 473% return [41]

Trading Performance & Strategy - Trader aimed for $20,000 weekly profit, starting the day $7,000 away from the goal [2] - Initial trading strategy involved identifying trend areas on smaller time frames, using indicators to find overvalued or undervalued areas, and capitalizing on fair value gaps [6] - Trader typically risks approximately $1,000 per position, aiming for profits of $3,000-$7,000+ per position [7] - Trading strategy focuses on early entry into potential trends, with contained risk [7][9] - Trader emphasizes keeping losses small and allowing winners to run, rather than consistently locking in profit [28][29] - Trader is considering increasing position sizes and risking $5,000 due to perceived accuracy and consistency [80] Specific Trades & Outcomes - Day trading resulted in a net profit of $8,592, contributing to a weekly profit of $21,500 [66][67] - Win rate for the day was 64%, significantly higher than the trader's normal win rate [67] - First trade resulted in a $1,500 loss due to a trend break fakeout [69] - One successful trade generated $3,000+ in profit by identifying a sell signal using a proprietary indicator and trend following [57][77] - Another trade on Ethereum locked in $1,257 profit on the front half before being stopped out at break even on the other half [75]

Core Insights - Tesla has experienced significant price volatility over the past month, trading close to all-time highs before breaking down and then recently surpassing previous resistance levels [1][2]. Price Analysis - In the last five days, Tesla's stock price has shown volatility, breaking down around the support levels of 435 to 437, and recently managed to break above that level, indicating a shift where old resistance becomes new support [2][3]. - The one-year chart indicates that Tesla has formed a basing pattern, which is typically a bullish formation suggesting accumulation over time, although there is still considerable repair needed in the second half of this formation [4]. Candlestick Patterns - A bearish engulfing candlestick pattern was observed at the all-time high resistance levels, indicating significant supply at that level, which suggests that long-term resistance remains strong [5]. Support and Resistance Levels - The long-term support level is identified around 400, which is a gap from September 15, indicating a potential area of interest for long-term investors [5]. - Relative strength analysis shows that Tesla is approaching relative strength resistance against the tech sector, which may be a point of interest for traders [6].

Market Analysis - PEPE's price action is exhibiting movement between support and resistance zones [1] - The "Support and Resistance Levels" indicator identifies key support and resistance areas [1] - The indicator aims to save users time and money [1]

Technical Analysis - PEPE is fluctuating within a support and resistance zone, as indicated by "Support and Resistance Levels" [1] - A breakout above the resistance level could lead to continued upward movement [1] - Failure to break resistance may result in a retest of the support level [1]

Market Analysis & Predictions - Bitcoin is in a healthy uptrend, supported by a previous resistance-turned-support level on the daily chart [1] - A cup-and-handle pattern suggests potential further upward movement, targeting a previous high around the 0.080618 level [1] - The analyst uses New Moon and Full Moon cycles as a "mystical" indicator, noting past correlations with market movements and suggesting watching for potential highs around the next New Moon in 10 days [1] - Historical patterns of Bitcoin halving events suggest a potential peak around 520-540 days after the most recent halving in April 2024 [1] - The analyst expresses a neutral stance, viewing market volatility as an opportunity and suggesting potential shorting opportunities if Bitcoin reaches certain levels and exhibits specific price action [1][2] Trading Strategies & Risk Management - The analyst advises against blindly placing limit orders, instead recommending waiting for a breakout and pullback before entering a short position with a stop-loss above the high [2] - For Ethereum, the analyst suggests that if Bitcoin rallies, Ethereum is likely to follow, targeting a specific level; if both reach potential highs, any pullback could be a shorting opportunity [2] - The analyst mentions Bybit and Binance exchanges, highlighting potential fee discounts for users [2] Contrarian View & Long-Term Belief - The analyst acknowledges the "eternal bull market" narrative but cautions against complacency, emphasizing the importance of profiting from potential downturns [1] - The analyst believes Bitcoin will eventually reach $1 million USD, but is more concerned with how to profit during potential pullbacks [1]

Market Analysis - The analysis suggests Bitcoin might be breaking out of a consolidation phase on the daily chart, after a prolonged period of sideways movement with parallel highs and lows [1] - A cup and handle pattern appears to be forming, with the handle coinciding with a full moon cycle, which the analyst considers significant despite skepticism from some [1] - The analyst suggests that if Bitcoin holds above the previous high, it could signal the start of a rally; however, a drop below this level could indicate a false breakout and a potential shorting opportunity [1] - On the hourly chart, Bitcoin has surpassed a previous resistance level, potentially turning it into support; a sustained position above this level could lead to rapid gains [1] - Despite price increases, there's evidence of short positions increasing, suggesting potential buying pressure from spot markets aiming to push prices higher [1] - The analyst suggests a long position with a stop-loss below the current level, targeting a 066%-068% increase, around $120,000, while being cautious about setting targets too high due to a potential market structure shift [1] - A break below the parallel highs would signal a clear shorting opportunity, potentially targeting a $5,000-$6,000 drop [1] - Ethereum is showing signs of support and a potential rebound, but its movement is contingent on Bitcoin's performance, particularly whether Bitcoin can maintain its position above the parallel highs [1] Trading Strategy - Consider a long position with a stop-loss below the current level, targeting a 066%-068% increase, around $120,000 [1] - If Bitcoin fails to hold above the previous high, consider a short position targeting a $5,000-$6,000 drop [1] Risk Management - A drop below the previous high could indicate a false breakout and a potential shorting opportunity [1] - Be cautious about setting targets too high due to a potential market structure shift [1]

Market Trends & Analysis - The market is experiencing a persistent uptrend with major averages hovering near all-time highs, and a breakout in June fostered additional upside momentum [1][2] - Technical analysis suggests a price objective of approximately 6880 with a timeframe of 2026 for the S&P 500, with support around 6130 [2] - The 20-day moving average is pointing higher for the S&P 500 and Nasdaq 100, advising clients to stay invested as long as this trend continues [12][13] - August and September typically carry seasonal headwinds and volatility [11] - October tends to carry volatility but also major lows, potentially offering a reset for Q4 [13][15] Oil & Energy Sector - Crude oil showed an oversold indication on the monthly chart around April-May lows, but needs to break above resistance in the mid $70s to reverse the downtrend [5] - The energy sector continues to underperform [5] Yield Curve & Interest Rates - The yield curve is considered important, especially with events like Jackson Hole, employment reports, CPI, and PPI, but remains at the low end of the range [6] - A neutral bias on yields has been maintained for most of the year [7] - Peaks in the fed funds rate tend to be associated with peaks in the S&P 500 [8] Bitcoin Analysis - Bitcoin is currently in a consolidation phase with a neutral short-term bias, having broken out above former resistance at approximately 108,000 [19] - Bitcoin has support around 111,000 and a potential objective of approximately 134,000 to 135,000 based on the breakout [19]