November 14, 2021 (to add ARBK, SBEA)

Following Thursday's session of indecision, the Nasdaq snapped to attention Friday, +1.0% on +14% volume. Note how volume dried up nicely on Thursday before expanding on Friday. This is typical of the early stages of an advance.

Drivers include still-low interest rates and a good earnings season.

Our triggered trades emerged from the three-day Nasdaq pullback in good shape, and some of the better ones plowed ahead into new-high ground.

At present, there are more pattern setups than in the last few reports. Overall, these are more-aggressive plays and some may not be suitable for all members. Stick to who you are as a speculator, which only you can know.

Any stock related to bitcoin/crypto/blockchain represents higher risk. Holding a portfolio with a high percentage of exposure to this could be susceptible to a day in which they all come down in sheets.

The following names are believed to be the most attractive for our strategy of speculation in the $13+ market.

Airbnb (ABNB)

Argo Blockchain (ARBK)

Canada Goose Holdings (GOOS)

Hut 8 Mining (HUT)

Impinj (PI)

Silverbox EngMrgr (SBEA)

Sprout Social (SPT)

Veritone (VERI)

In summation, the market is staging a nice follow-through as it emerges from its three-day pullback. Because most of the quality merchandise has already made its move, very few pattern setups exist outside of the more-speculative stuff, as seen above.

Q&A

Q: There are 4 different estimate parameters available in Marketsmith. I am trying to see which one makes more sense. Please let me know which one did you mean in your tweet today?

- EPS Estimate - Earnings Surprise
- EPS Estimate % change - Next Qtr
- EPS Estimate % change - Current Year (I assume this is the criteria when we are early in the year (Jan- June)
- EPS Estimate % change - 1 Year Forward vs Current Year

Please, let me know your thoughts.

A: In a fiscal year ending Dec, I look at this year's estimate of growth up until June 30. On July 1, I look at next year's estimate. For example, right now no one cares about this year's estimate because this year is almost in the can. I hope this is helpful.

Q: Loving the service so far. I really appreciate everything you do for retail investors. I joined the service because you were so responsive to my questions before I joined the service. Wish I would have joined sooner. I have been a fan of yours for quite a while. Loved your MarketWatch articles. I used to wait on pins and needles for your articles to come out. 

I have a question for you on pullbacks. I have been through your videos and might have missed this portion if you covered it. Do you ever keep pullbacks or add to them?  For example I took the GTLB pullback and it easily made 1R for me. Because of the rapid move I considered adding or keeping to the position but I decided to not audible and follow the plan and took a relatively easy 1r profit. Thank you again.

A: Thank you for sharing your experience with the service. What I do with the stock is largely dependent upon what type of stock it is. If it is an S&P 500 type of large-cap issue that is non-growth, and does not trend as well, I will scalp for 1R. If it is a growth stock, I will look for an intermediate term move and add to the position as price moves higher, treating it like I would a breakout. Good question.

Kevin Marder

Trading Lessons
Introduction to the service video (38:00)
Money management and risk management video (20:27)
Bread and butter pullback video (11:10)
Bread and butter pullback: Pt II video (15:09)
Bread and butter pullback: Pt III video (31:48)
Bread and butter pullback: Pt IV video (30:16)
System R
Short-selling video (25:53)