Introduction and Personal Reflections

Opening Remarks

• The speaker introduces themselves with a metaphorical reference to Lazarus, indicating resilience and a positive outlook despite challenges.

• They express gratitude for the audience's presence and acknowledge their previous struggles, emphasizing the importance of love in their work.

Audience Engagement

• The speaker greets various attendees by name, creating a sense of community and connection within the session.

• They mention a change in schedule for this session due to an options workshop they are conducting.

Options Workshop Insights

Overview of Workshop Content

• The speaker shares excitement about providing trade ideas during the second day of their options workshop, highlighting successful trades in Amazon, gold, and Nvidia.

• They emphasize the value participants gain from these sessions, suggesting that insights provided can justify the cost of admission.

Humor and Lightheartedness

Incorporating Humor

• A dad joke is shared as part of engaging with the audience; it reflects a light-hearted approach to teaching.

• The joke involves wordplay related to restaurant reviews, showcasing creativity in communication.

Technical Analysis Discussion

Revisiting Previous Concepts

• The speaker plans to revisit technical analysis concepts discussed previously while preparing for an upcoming live training event.

• They announce future workshops planned for Ohio, reinforcing their commitment to community engagement.

Analyzing Walmart Stock

Key Trading Strategies

• Focus shifts to analyzing Walmart stock as part of trading strategies discussed last week; simplicity is emphasized in trading approaches.

• The speaker encourages traders to keep strategies straightforward without overcomplicating them.

Identifying Strong Stocks

• Three key criteria are outlined for identifying strong stocks:

• Start with strong sectors.

• Look for stocks with good structure (indicated by EMA relationships).

• Wait for pullbacks into risk zones before entering trades.

This structured approach aims at simplifying decision-making processes in trading.

Trading Strategies and Market Analysis

Understanding EMA and Position Sizing

• The discussion begins with the importance of Exponential Moving Averages (EMA), specifically the 21 EMA and 34 EMA, indicating their significance in trading strategies.

• An example is provided for position sizing: Zone one is set at 1%, zone two at 1.5%, and zone three at 2.5% for a hypothetical 5% position.

• Confirmation of trades can be simplified by observing aggressive buying from smart money, emphasizing that sometimes less complexity leads to better decisions.

Analyzing Walmart's Market Behavior

• The speaker identifies a specific price zone on Walmart's chart, referring to it as a "gap," which charts often fill over time.

• The analysis reveals that Walmart filled this gap, leading to strategic buy points discussed in previous sessions.

• Emphasis is placed on keeping trading simple by waiting for pullbacks to manage risk effectively.

Exploring Alcoa's Momentum

• Transitioning to Alcoa (AA), the speaker prompts participants to identify its sector—metals, particularly aluminum—and assess its market momentum.

• Key indicators show that Alcoa has good structure and momentum, aligning with the established trading process of waiting for pullbacks into risk zones.

Identifying Gaps in Alcoa's Chart

• A gap similar to Walmart’s is identified on Alcoa’s chart; it was noted that yesterday’s price action rejected this gap while finding support levels.

• Specific buy points are suggested based on recent price behavior around $57.25, with stop-loss considerations set around $56.

Options Trading Insights

• Discussion shifts towards options trading strategies related to Alcoa; significant call options were observed being purchased recently at various prices.

• Smart money activity indicates strong interest in March $70 calls for AA, suggesting bullish sentiment despite current pricing below these levels.

• The expected move calculations confirm that current prices align within anticipated ranges, reinforcing confidence in potential upward movement based on smart money actions.

Trade Planning and Market Insights

Building a Trade Plan

• The speaker emphasizes the importance of treating each trading zone as an individual trade, suggesting that traders should be flexible with their entry points while adhering to their stop-loss rules.

• An example is provided where if a trader enters at 1.80 and experiences a 25% pullback, they can still engage in the trade at 1.30 while maintaining discipline.

Market Focus on Metals

• The speaker expresses interest in AA (Alcoa Corporation) and suggests looking for other metals like FCX (Freeport-McMoRan), GLD (Gold ETF), and SLV (Silver ETF) during market pullbacks.

• The emphasis is placed on these stocks being in trend and strong, indicating potential opportunities for traders.

Understanding Expected Moves

• A question about determining expected moves leads to an explanation that this information can be found on the options chain within Thinkorswim, specifically noting an expected move of approximately $10.50.

Importance of Volatility Events

• The speaker highlights the significance of Jerome Powell's upcoming speech at 2:00 PM EST, marking it as one of eight critical days in the year that could lead to increased market volatility.

• Traders are advised to either sit out during high volatility or engage with a well-defined plan, emphasizing preparation for rapid market movements.

Trading Strategies During Volatility

• A strategy is suggested involving placing limit orders at support levels to capitalize on price bounces after drops, ensuring clear stop-loss placements beneath those levels.

• The speaker illustrates how to set up trades using charts by identifying support levels and target prices while stressing the need for preset orders due to fast-moving markets.

Utilizing Target Bracket Orders

• Explanation of using target bracket orders in Thinkorswim allows traders to set limit buys along with stop orders above and below their entry point for better risk management.

Upcoming Educational Opportunities

• The speaker announces plans to share indicators on their website soon and conduct live sessions on YouTube aimed at helping traders understand how to implement these tools effectively.

Closing Remarks

• As the session concludes, there’s encouragement for traders to remain kind and engaged with others while also announcing future live sessions focused on trading strategies.