I‘ve been doing my Bank It or Tank It series for 2 years.
Normally in this series, I’d take the stocks you all are interested in, and provide the key trend levels to watch so we can determine if they’re set to head higher or lower. (We’ll talk about this more later, but you can write me anytime with what you want to see.)
This way, even if my initial analysis is wrong, you know the key levels that would make me change my mind and you can adapt accordingly.
But in 2021, we took my Bank It or Tank It analysis to a new level…
We didn’t totally revamp the approach. We just made it better by adding my Profit Radar.
This Radar, which can tell us which stocks are set to move faster than any other in the market, is a truly unique way to analyze charts.
By adding the colors of the four possible trends of a stock to our price charts, we get an even better picture of where the stock is likely headed from here.
And it worked out great…
We were spot-on most of the time, calling quick, double-digit moves in the direction we ended up picking (higher for Bank It stocks and lower for Tank It stocks).
One standout example comes to mind…
These Videos Were on Point!
At the end of July, we took a look at warehouse giant Costco (COST).
Shares had jumped 35% in the last four months, and there were a lot of worries it got overheated.
But I said it was “definitely” on my Bank It list…
And what happened?
The stock jumped another 30% since then.
This was just one example.
Advanced Micro Devices (AMD) and many more.
Now that we’re in 2022, I want to add another wrinkle to the mix.
A wrinkle to take our analysis to the next level once again. It will give us an even better whole picture, without making things too complicated.
And that’s adding in unusual options activity…
The Perfect Bank It or Tank It Setup?
I know, we’re layering a lot on to these charts.
You have the stocks, the key trends to watch, any technical patterns, plus the quadrants based on the Profit Radar.
Now, we’re adding another element as we examine the recent options activity and stock volume on these stocks.
I’ve been using our Monday issues to dive into unusual options activity on a regular basis.
This information is so interesting, I can’t stop analyzing the data.
Not that every bit of unusual activity is mesmerizing. But coming across the ones that are, and seeing the wild option plays some traders put on, that gets me excited.
Honestly, we may go against their take in my Bank It or Tank It analysis. Just like sometimes a stock is bucking a trend or trying to show other signs of weakness outside what we usually look at.
But, I think by incorporating this activity into our analysis, which will be a quick scan in the options market, we’ll have a total picture of the stock.
From the basic price chart, to how it’s rotating on the Profit Radar, and now how traders are spending their money behind the scenes, I want the most valuable picture we can take of these stocks whenever we sit down to analyze them.
And adding the latest options activity or unusual stock volume helps us do just that.
I can’t wait to dive into our analysis like this, and we’ll start next week.
But first, I need a list of stocks to analyze.
So I want you to send me the stocks you want me to take a look at. Keep in mind, since these are outside my premium services, these won’t be official recommendations and won’t be tracked.
I simply take the stocks on your radar, run them through my analysis, and let you know what it means, all in a simple form to give you my quick take.
You can send them anytime to TrueOptions@BanyanHill.com.
We had a phenomenal year running through our Bank It or Tank It stocks that you all shared with me.
I want to say thanks to everyone who has sent in a stock while we’ve been doing this and to keep them coming.
I’ll be back next week with a new video, where we’ll feature our newly added unusual options activity to the mix.
Chad Shoop, CMT
Editor, Quick Hit Profits
Chart of the Day:
Here It Goes Again
If you told me six months ago that QQQ would still be in this super clean uptrend, I would’ve… well, been pleasantly surprised.
Much unlike the Russell 2000, which has been stuck in a stubbornly sideways trend, QQQ has been clawing its way higher over the last couple years.
And it’s been doing so almost systematically.
This morning, leaving the 9- and 20-EMAs and 50-MA on, I noticed that QQQ investors have dutifully protected the ETF from falling below its 20-week EMA. The short-term momentum in tech is simply unstoppable. Or, at least it was.
There’s evidence today that these lines might not hold much longer. And if they break, we could be in for some long overdue pain in tech stocks.
The high-growth areas of the stock market have taken an absolute shellacking over the past few weeks. As such, QQQ is under pressure. A couple more days of red will see it close below the long-term blue uptrend line on the weekly. This would also cement a pretty bearish MACD cross, and confirm the sideways action in the RSI, even as the price has made higher lows in the same span.
This is a spot to be cautious on any high-growth areas of the market, specifically tech.
Managing Editor, True Options Masters