Good morning, traders…
Right now, I’m sitting in (or eyeing) seven specific setups across stocks and sectors.
And once I started really digging into the charts, I realized something: every single one of these setups teaches a unique and valuable trading lesson.
These aren’t just potential trades, they’re reminders…
From the importance of patience and discipline, to reading technical indicators like moving averages and support/resistance, to managing your mindset under pressure, each setup allows you to sharpen your trading skills.
When you look at a chart, it’s easy to focus on the potential gains. But my job is to help you see “the why” behind the moves…
- Why do certain patterns work?
- Why do certain levels matter more than others?
- Why did this breakout fail, while that other one exploded higher?
Today, we’ll go over the seven setups on my radar right now — and more importantly, the key takeaways each one offers…
SPY: Being Patient (and Following Rules)
On Wednesday, we watched the SPDR S&P 500 ETF Trust (NYSEARCA: SPY) surge into the close after a choppy session.
Without clear rules, you might’ve been buying on hope or selling on fear, getting tossed around by every little bounce.
But the disciplined approach called for watching the 21-day exponential moving average.
The price pulled back four times and failed, but when it finally punched through, it confirmed strength.
Then, on Thursday, the index jumped another 1.2%:
That’s why we don’t chase setups — we patiently wait for confirmation, then act.
MSFT: The Buzzer-Beater Trade
Microsoft Corporation (NASDAQ: MSFT) gave us a perfect example of a “buzzer-beater” trade yesterday.
Right before earnings, big Smart Money bets came in, hitting odd-lot calls above the ask, far out of the money, short-dated.
Some puts were coming in too, but that late surge on the call side was much more significant. Sure enough, MSFT smashed earnings and the stock soared 8.3% on Thursday:
I can’t send out alerts with only four minutes of trading left — you’d never get positioned in time without chaos.
But this is the kind of setup you can watch for yourself…
When you see these kinds of late-in-the-day bets on the OMEN Scanner ahead of big earnings, they’re worth noting.
They might be signaling that the Smart Money knows something we don’t.
But remember, they’re high risk and reward, so size your exposure carefully.
ZS: Holding Strong (and Trusting the Chart)
I got some questions about why I didn’t cut Zscaler Inc. (NASDAQ: ZS) when it pulled back yesterday.
Here’s why: it wasn’t doing anything wrong.
It had broken through prior resistance, and when it retested that level, it held. That’s a good sign, not a bad one.
I want to be clear — I set levels assuming some of you are newer traders, but as you gain experience, I want you to take on the role of the employer, not just the employee.
Ultimately, I want you to see the levels on your own.
Look at the chart and decide: Is it still doing what you expected?
If yes, stay in. If no, cut. It’s really that simple.
AMD and BILI: Watching for Breakouts
Advanced Micro Devices Inc. (NASDAQ: AMD) was another standout. The setup was clear: a breakout above $110 on the May 16th calls, or a pullback to $97.50.
Meanwhile, Bilibili Inc. (NASDAQ: BILI) showed a beautiful gap-fill setup above $17.
Both were solid directional patterns that offered an attractive risk-reward.
SOFI: The Power of Stages
SoFi Technologies Inc. (NASDAQ: SOFI) is showing classic stage development: downtrend, consolidation, and a potential breakout.
If it can reclaim $13, I like it heading into the fall, especially if interest rates come down.
That $13 level, just above the 200-day simple moving average, is a key spot to watch.
CleanSpark: Crypto Trading (and the Long Game)
CleanSpark Inc. (NASDAQ: CLSK) ties into the crypto conversation, where Bitcoin is hovering near $100,000.
And yes, I hold long-term crypto positions — those are on the monthly chart in my mind. That’s money set aside for my kids’ kids.
For CLSK, I’m still watching the shorter-term levels: support, resistance, and potential breakout spots.
Different timeframes, different strategies.
MongoDB: The Importance of Cutting When Necessary
Finally, MongoDB Inc. (NASDAQ: MDB).
I exited the trade after it broke below my key support. Later, it bounced.
Sure, this was annoying to watch. But sticking to my system saved me time and let me focus elsewhere.
Could I have given it more room? Maybe.
But discipline matters more than any one trade. We don’t need to catch every bounce — we need to be consistent across all of our trades.
If you pay attention, almost every setup will teach you a valuable lesson, just like these.
Happy trading,
Ben Sturgill
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