Daily Review

SPY all time highs. My best month ever

Dec 01, 2024

Some decent action on the shortened Friday.

RKLB the standout as it has been for a while, continues to close higher each day. 256% gain now.

Closed out my best month ever, +47%, great to see after previous 2 months being small red. Mainly down to MSTR with that being my best trade ever. A great example for me as well of sizing up when you have conviction. I said right from my first buy in MSTR that I wasn’t interested in selling in to strength, and was more planning to add on dips. It was the biggest fat pitch in the market given it’s relative strength to the market and bitcoin, and the huge weekly base it had. As the great Stanley Druckenmiller said:

"It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong."

"Soros has taught me that when you have tremendous conviction on a trade, you have to go for the jugular. It takes courage to be a pig."

When I look back at my biggest trades, they always look like this. Liquid leader, strong theme, big weekly base. You only need a few of these a year to make your entire year, and as most big traders say, you’ll often find that a few trades often account for majority of your annual profits. I think I would do so much better if I traded way less and focused on the fat pitches. The likes of NVDA, SMCI, APP, GEV, MSTR are all great examples from this year.

I also did much better at things I said I needed to work on after I shared last month’s results, mainly around when to get aggressive and when to back off. The breadth measures have been a key component in this, mainly using the % stocks above 5 and 20MA in conjunction with how leading stocks are holding key levels to spot potential turning points. Still far from perfect and some overtrading to still work on but much better.

Friday I bought OKLO from the morning’s watchlist. Early entry off the 20ema as it builds out well at highs in this base. Strong nuclear theme

Took a loss in COIN and a small one in RBLX.

MARKET

SPY all time highs. Can’t argue with that

QQQ holding well back above the 20ema. Coiling, see if it can make a push back to highs

IWM good strength followed by quiet consolidation. Nice action. getting tight below all time highs.

STOCKS ON WATCH

TSLA

This is my next major focus in terms of the liquid leader profile I mentioned above. Have tried a couple of adds and stopped. Missed a good intraday spot on Friday which lined up with undercut and rally of the 10ema. Watching it at 350 psych level.

Weekly shows the bigger picture. Has a history of making massive months with big bases. We’re now 4 years sideways. Liquid, can make explosive moves, big base, strong theme and tailwinds, it ticks all the boxes. Want to get minimum 50% account position