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Green Gusher: How to win in the desert/water for bulls
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Of the first 4 trades (we started with zero so the number isn’t conventional) here ar how the contracts we stated we liked during the YEET and called entry on are doing/have done.
Pt. 1: How to Win in the Desert
This is the kind of market activity where you really have to be drilled in on levels and know your price action; VWAP can’t save you here. It’s the mechanics that matter—I myself thought it was the old rules and played a little loose with SPY when I first came back and learned a quick lesson.
You’ve got to down the checklist, and most important is the first: ENTRIES. You have to know when you’re entering, why you’re entering, and if there is a better entry know where it is so you can average. Here’s real-life examples from our trades in YEET Plus this week:
1. See similarities in setups:
Noticed in the garden that AMD had an upside gap to close as it moved in a bearish structure. Given we’ve had some big drops lately, I knew to look for that setup when I saw other tickers—and ASML had the same one.
Looking at the tape, we saw the whales stacking the deck. Today alone, ASML saw a flood of short-dated bearish flow ($1200, $1135, and $1145 Puts) right at the gap resistance.
Seeing equities helps you see the index, not the other way around.
Sometimes we have to remember that. If a bunch of tech has the same setup—for example, like these—monkey see, monkey do.
2. Know what the whales are looking at so you know your risk profile.
For example, we knew in those two trades (AMD/ASML) that we were entering a play where they wanted to short at the gap completion. So we enter with a little tighter stops.
But with BSX which is gonna pop—on my granny—I entered early to be in it because there was so much flow. We saw over $207,000 in premium hitting the May $90 Calls earlier this week. One look at the chart and I knew what they saw was the massive upside gap. If any news—and I mean any news at all—hits, we get to ride. Knowing where the monthly was on a retest of 70, I was comfortable entering early.
The point I’m driving home is this: if you aren’t going to take the best entry, you need to know where there’s a better one. And before you enter any whale trade, actually have a reasonable thesis for what the whale sees.