Hey Market Pilots,
This write up is about how you may have to strike more than once to get the right entry and then how it became one of the my most picture perfect setups of July.
Back on June 22nd, SPCE broke news of them getting some contract from NASA and its volume went from about 10 million shares to 53 million shares. Something serious was up so I notified the Moxie subscribers about going in. The idea was to catch an explosive momentum move. Well, that didn’t happen. At least not the next day. That move lured traders in only to go nowhere and stopped me out. No big deal, but now my eye is really on it.
That much volume couldn’t be ignored so I watched as price continued to drift lower over the next few days. I then noticed that my trusted Moxie Indicator was staying over the zero line on the Hourly time frame despite price declining. My best setup, the Trampoline Move, was forming and I was getting excited. As an experienced trader though, I knew I couldn’t just go in based on the potential of the Trampoline. I had to wait for the 15 minute to set up and trigger.
A few more days passed, price faded and went sideways, but the 15 minute Moxie Indicator was trending up. Excellent. Things were ripening.
The exact entry was when price moved up over the 15 min 50 and in we went, along with 14 million other shares. The move continued into the next day, but it was too good for the technicals. Price needed to rest and wait for the moving averages to catch up so I told all of my subscribers to be patient and expect price to pullback or flag. SPCE did just that, giving the first of the most ideal bounces off the Hourly 50 SMA.
51 million shares agreed with this and price was off and running, about 16% that day. Once again this was great, but too much for the technicals as price pulled away from the hourly 50 with such a forceful move. I could see that a pullback was going to be needed. Then Monday the 13th happened and the market got shot out of the sky, bringing most names with it.
SPCE gave back nearly all of its previous gains, which I am sure disheartened many, but told me the second most ideal setup was presenting itself: a bounce off the 50 SMA. I needed to wait for confirmation of this bounce; to make sure that price was in fact going to hold the hourly 50 SMA. I waited a couple days till I saw exactly what I wanted to see: price closing over the 15 min 50 SMA.
The very next day price shot up as if it were, in fact, strapped onto a rocket booster and provided another 16% gain in a day and another 52 million shares. Yes price was pretty extended at this point, but this was a solid bounce and on big volume so I decided to hang on at least one more day. That decision brought in 13% more and it was at that point I decided to cash in half of my position for a 52% gain in 17 days.
There could be more to come on this particular run, but it is best to pay yourself along the way. There will be many more opportunities to enter again as I see SPCE on its newest trajectory, perhaps someday to surpass its astonishing $42 peak.
Over and Out,
Your Profit Pilot