Hey! I’m @yourboymilt, and welcome to retail’s Sunday Paper.
I should probably let you know...This is not financial advice! We are here to entertain while giving you ideas, perspective, and angles. Do your own research, I prithee. And if you aren’t subscribed, join us here:
Creator/Editor:@YourBoyMilt The Architect: 🧠 Publishing Associate:@YourGirlRachie
Pt. 1: Week’s Thoughts, Pt. 2: Build-A-Trader 8: MACD (@makeabuck2), Pt. 3: CRYPTO (sourmilk, capybara), Pt. 4: Watchlist, Pt. 5: Index Forecasts (@daarkmaagician ) Pt. 6: TLDR
Editorial Board: @jimengland & @jameoneill
Pt. 1: MO🌕N
I want to go to the moon.
You must have too, at some point, to be in this moment with us. For these borrowed minutes your journey is mine and mine is yours, part reflection of self and part origin story.
The wade into options trading began with faint sketches of the intangible, the inception of an unrealized desire for something more. This disease of more could’ve been transmitted from a TV screen, the casual arrogance of a suddenly flush friend, or another night stuck to the glow of a monitor. The words were ephemeral but the feeling is forever, and that snapshot in time remains that moment. That moment we discovered a side door to wealth previously unimaginable. That moment we at times cherish and at other times lament. That moment that vaunts us with each multibagger, and haunts us with each worthless expiration. Whether you’ve arrived from the abyss of unemployment, the apathy of the 9 to 5, or even the comfortable chasm between middle and upper class, welcome. Your previous existence has been a blissfully ignorant march through this American life, and you’re now reborn into the righteous greed of America’s hidden casino.
You’ve got options now. The sky is the limit.
The promises of options lie somewhere tauntingly close, dangling near enough to imagine yet too distant to grasp. Glimmers of glory like Keith Gill’s brighten an otherwise dark expanse, drawing our attention like stars against a black sky. Your telephone is now a telescope and your desk is now ground control; paychecks are repurposed as fuel for your new home in Houston. With eyes fixed on screens and your imagination floating with the stars, the immediate challenge ahead becomes flight. An intergalactic flight, a moon mission, a launch beyond the orbits of saving and investment toward an improbable landing on another world. Or, ideally, another life. Trained for a plane but wanting for a rocket, weekly missions become more daring and more turbulent. The recklessness you once feared fades into the mundane as the thrill of Mach 3 becomes a drill in monotony. After a time, the heat of the YOLO becomes a sort of jolting comfort, like the roar of an engine before liftoff. 10% green in a week becomes a sub-par showing. Down 20% on the week? Just the price of admission. But then are those moments—the satisfyingly chaotic and quiet victories—where we launch to 100% gains and we know we can fly. With a cigar clenched in your teeth and two feet on the ground, you too can return a victorious astronaut one YEET at a time.
In the silent contemplation that accompanies the distance from Earth, those nagging thoughts creep into the solitude.
My 0DTE hit, I swear I can do this. I just YOLOd the wrong sector, I don't think I can do this. What am I doing? I won’t do this anymore. Welp, here I go again...and again...and again...and again.
Self-doubt is useless. In the expanse of space, colonization is king and we’re the aliens to the market of Mars. Our nation’s leadership has decoupled from our retail rocket, soaring selfishly, leaving us aimlessly floating through the cosmos. Each month a new Senator amazingly “beats the odds,” their boots plunking onto the moon with the predestined determination of Sputnik:
In July, while the Senate was in the final weeks of negotiating the bipartisan infrastructure bill, Sen. Tommy Tuberville (R-Ala.) bought and sold between $170,000 and $475,000 in stock and options of a mining and steel manufacturing company that said it could benefit greatly from the infrastructure plan.
On July 21, Tuberville bought between $100,001 and $250,000 in Cleveland-Cliffs stock and two days earlier sold between $50,001 and $100,000 of that stock. In that period he also sold put and call options of the stock, which are more speculative financial instruments based on the price of the underlying stock.
Some, like Nancy Pelosi, are born full blown Martians, having seemingly occupied an investment planet beyond our grasp since time immemorial. Whether that’s her short-term discoveries:
Most of Pelosi's gains are quite interesting, given the timing of her plays. For example, she was able to get into TSLA, DIS around stimulus news, NVDA before American Semiconductor funding was announced, among a long list of interesting picks. She also timed the NFLX buys on June 18th perfectly. It was released on July 14th that NFLX is entering the videogame space, causing the stock to rally significantly.
Or her long-term excavations that dig up new elements with impeccable timing:
Shameful shit. But it gets more...out there.
We’ve just discovered this week that even the agency sworn to guide our mission—retail’s NASA—has left us tumbling through the abyss; we’ve got no honest guidance coming from Ground Control, as The Fed has now apparently decided to tilt the casino as well.
The presidents of the Federal Reserve banks of Boston and Dallas said they are selling their individual stock holdings by Sept. 30, in moves aimed at quenching ethical concerns over their trading activity last year.
Rosengren’s disclosure listed stakes in four separate real estate investment trusts and disclosed multiple purchases and sales in those and other securities. Those investments raised eyebrows because he has publicly warned about the risks in commercial real estate.
Kaplan’s disclosure shows that he bought and sold iShares Floating Rate Bond ETF, which tracks the level of bonds under five years of maturity. The Fed, through its adjustments to the fed funds rate, directly influences the price of short-term notes.
And of course, just now as bond tapering is on the horizon, they’ve dumped those investments for ‘ethical reasons’.
YEET 21 to Houston, we have a problem.
We’re now floating hopeless and abandoned, our previously unending flight towards profit now further away than Saturn. We’re on our own this coming week—it’s Quad Witching, and all options contracts have expiration dates...at once...this Friday. Great. Our weekly moon launch should be delayed by this weather which says we should wait—but, fuck it, we’ll all test if SPY can fly either way. Especially since it seems that Quad-Witching was front-run this week by that red SPY curveball on Friday. Yet and still, be on guard, and watch for volatility rather than clear skies ahead;
Options volumes tend to be particularly elevated during quad-witching periods, which may also account for some of the choppiness anecdotally associated with September as the worst-performing month for the Dow DJIAXX:DLW1IDUA, S&P 500 SPX and Nasdaq Composite COMP indexes.
The past few trading days our confidence fell low, and bulls didn’t have the fuel to burst our thrusters past a fizzle—another week, another curveball, and another failed launch. On Tuesday the big banks caused our continued ascension to crash unceremoniously back to Earth; things just weren't the same after the banks slid the indexes down with their conspiratorial new outlook:
Morgan Stanley slashed U.S. equities to underweight and global stocks to equal-weight on Tuesday, citing “outsized risk” to growth through October. Credit Suisse Group AG, meanwhile, said it maintains a small underweight on U.S. equities due to reasons such as extreme valuations and regulatory risk.
I guess that explains what happened to our calls.
That begs the question: if valuations and regulatory risks are causing turbulence, why do they think it’s up to retail to repair the rocket…
Retail investors are seen as the key force behind recent gains. They plowed almost $30 billion of cash into U.S. equities and ETFs in July and August, the most in a two-month period, according to JPMorgan Chase & Co. They could also be the bedrock that could keep the market stable, as long as easy money policies persist, according to JPMorgan.
I suppose it’s us of the RobinHood brigade who now determine the market’s reaction to Fed policy shifts 🙄 . This is funny, given that the same ‘analysts’ just said that this week’s underwhelming performance was caused by big bank outlooks and concerns unrelated to retail.
It’s Sunday night, the stars are bright, and the past week’s sun is setting again. Futures hover like clouds against a dimming sky, meaningless tufts that evaporate into nothingness tomorrow. Monday mornings come cool and crisp, refreshed accounts serve as hopeful weather for the launch of a new trading week. We’ve had these nauseatingly manipulated trips to the moon and back so many times, I have to ask myself, why do we keep suiting up? Why is it that we continually embrace the wonder of flight into the great beyond? For me, it’s the zero gravity moments—the moments looking down past the monotony of life’s orbit, content in the elevating weightlessness of a weekly win. For me, it’s the gains that lift you into the stratosphere, so high that you can wave goodbye to your former life grounded on the Earth below.
Welcome to YEET no. 21, brought to you by…one small step for YEETkind.
Pt. 2: Build-A-Trader (B-A-T) 8: Intro to MACD. Not McD— “Moving Average Convergence Divergence”
Contributor: @makeabuck2
Next time you see an UW alert or Milt sending out a tweet explaining why he’s bullish or bearish about some flows… Pause. Don’t YOLO until you do a thorough research on market direction, technicals, company fundamentals or WSB for that serious DD. Kidding.
Just do 1 thing but do it right…
⭐️ Lookup the damn MACD on the 15 min candles chart See if it is trending in your trade direction! If not…just wait until it does.
MACD is an indicator that should be setup in all your charts on TOS, Webull, Fidelity, ETrade (or if you’re rich charts on Trendspider or Tradingview. Unfortunately, if you’re stuck in the trading infancy of Robinhood… you’re out of luck. In that case download WeBull Desktop because it’s free!
🤔 Before we dig in…do you doubt the power of the MACD? Well if you’re unaware, that was the hidden message in this tweet that famously sent GME to the moon (for like the fiftieth time).
PS this is not a joke--that reference to MACD crossing DID have that much power.
🤷♂️ So, what do I even mean by “MACD”? Can I ELI5? Sure, my fellow yeetlings.
⏩ MACD shows if the trade is moving fast in your direction. When you YOLO, you want to know you’re green from the get-go, and this will show ya. It’s a much better alternative than sitting through 2 weeks of 75% red... only for it to somehow beat the odds and come back to green on pure hopium. That’s 2 weeks of loss porn material... sure... but was the reddit karma worth the heart attacks and anxiety along the way?
🤷♂️ Okay, okay. Can I ELI-Adult? Sure.
Moving average convergence divergence is calculated by subtracting the 26-period exponential moving average (26 EMA) from the 12-period EMA.
MACD = 12-period EMA - 26-period EMA;
If there’s near-term bullish momentum… then, obviously, 12-period EMA will be higher… which means MACD will be higher.
😮 Some questionable research/study I found online shows MACD is 80% accurate in predicting trends for large-cap and small-cap. These heady days of trading MSFT/NVDA/SPY and SPRT/ANY have shown me that MACD is good enough for our “Trading style” aka trading momentum and squeezes.
How to use MACD right with examples:
Thetawarrior tweeted last weekend about TSM, and he shared his professional opinion that it could go either way. Makeabuck (me) countered it with a cryptic comment: “MACD curling up”.
Let’s see what happened with TSM (although I was a bagholder for much of last week because I got greedy and got 125Cs):
💰Price was $118-119 on Aug 30 after Theta’s tweet and my bold prediction. Ended up as high as $124.5 on Fri.
❗️Notice the bubbles in the chart below. How each time MACD crosses over there’s a price rise and vice-versa. This predictive element is why we play the MACD! When it crosses at the bubbles above, you can predict with stunning accuracy which way things will move. Crossing up and over? Price rise likely coming. Crossing down and under? Hide ya kids hide ya wife— we going down. Yes yes, there can be false signals if you rely only on MACD. But, you’re not; you’re (ideally) additionally going off of alerts from YourboyMilt or UW or some technical analysis by Thetawarrior or Uncle ABU or the Trendspider guy.
In combination with price analysis or flow analysis from experts, this becomes a much better bet (❗️but don’t forget, the key word here in options is bet). Can I show an example to give you some practical use tidbits? Sure! There’s a way to tighten up our B-A-T process further described below:
Now, how do we make it work most of the time by avoiding MACD noise? If you’re going off of whale alerts, MACD could be all you need to take your trading to the level (but it’s likely not enough). Now, if you’re using price analysis or FURU tweets and adding MACD because I convinced you, you will find that flows in your trades work in a beautiful harmony— and may even allow you to front run some whales! For the sake of simplicity, here’s the breakdown for how to do this:
Lookup charts MACD on the Daily chart. (Ensures larger trend)
MACD on the hourly chart. (Avoid going red the second you bought your contracts)
MACD on the 15 min chart. (Higher conviction that you’re in the thick of the momentum)
🤦♂️ If you can’t do all 3 because it’s too much work and too much time then open up webull or your trading app before buying contracts based on alerts and lookup the 10min or 15 min MACD. That is the bare-minimum you have to do to avoid bag-holding for too long.
OK… goodluck Yeeters and BATers...Don’t swing at everything… you will get your home run when the setup is right.
🪙 Pt. 3: Tales from the Crypto— The RED Wedding
September was setting up nicely as another month of steady paced, healthy, and totally non-suspicious rebounding as Bitcoin rose from the ashes of sub-30 lows on July 21st, climbing over 70% on a 40-something day flurry to conquer $52K+ on September 7th. All was looking swell, not a worry in sight, until Crypto dun’ went Crypto on us once again and flash dropped $400B (~20%) off its total market cap over the course of about 10 hours. Just another day in the life for a trader in this steady, predictable market we’ve all come to...love? Yeah, love! We love it!
That sad face? That’s billions of dollars of leverages being liquidated in a few short hours… Poof
A couple handsome young traders once said, “Bitcoin moves off catalysts”, and it’ll always hold true. We suspect some of you caught a whiff of the headlines from weeks back that something pretty special was coming - El Salvador’s plans to add Bitcoin as legal tender, the first country in the world to do so. You can bet many early adopters got a joyful set of “I told you so”s as sweet as the sweetest of tendies, but El Salvadorians were fairly split on the concept. This video does a great job at demonstrating both sides of this revolutionary undertaking. It’s a Bitcoin-Futurist’s wet dream. But like wet dreams tend to go, the climax is soon followed by a quick need for clean undies as the “whoops” factor sets in.
The Salvadorian government launched their own BTC wallet called Chivo which was met with disastrous results from the beginning. Suffering restrictions in the Apple and Google Playstore halted its immediate distribution, and the utopian promise that the government would supply $30 worth of BTC to each citizen's wallet didn’t go quite as planned (in many cases, didn’t go at all). These issues and more had a great deal to do with the deep red we saw across our whole watchlists that day. However, not everything dropped to red during these mishaps. El Salvador partnered with a company called Koinbanx to develop their “official” government backed wallet. Upon the news that Koibanx would be using Algorand (ALGO) as a piece of core infrastructure in the app, the Algorand crypto ripped an impressive 30% before dipping slightly and resuming a positive trajectory.
Cardano (ADA) tore through ATHs like no other last week. The news of imminent smart contracts implementation was a huge bullish catalyst, and the price spike was well deserved. Unfortunately, that too, did not go as planned. These analysts explain it better than our world salad could, so we encourage you to read more about it here. The fate of ADA and it’s proposed use-cases are complicated, so we’re hesitant to make any firm bearish or bullish predictions on this one, but it does feel to us like there’s some unique opportunities presenting themselves beyond just the smart-contract space, and a few top contenders are vying to find their rightful places. By 2022 we could really see a top 10 market cap menu that shares only spotty resemblance to the top 10 of 2021 and prior. So, with that subtle little “who wants to be a millionaire” lead-in, whaddup wit’ them alt plays, eh?
OMG (OMG Network)
The OMG Network is a value transfer network for Ethereum and any ERC-20 token. It describes itself as the first production-grade layer-2 Ethereum scaling solution and aims to let people move money and a variety of digital values on the blockchain faster, cheaper, and without compromising on security. OMG has been running hard lately, and it is one of the quickest Altcoins to bounce when the market makes a move up. Let’s see the chart!
Entries: 9.40, 9.20, 8.29, 8.44, 8.12, 7.63
Targets: 9.75, 10.02, 10.44, 10.97, 11.61
LINK (Chainlink)
LINK is a cryptocurrency that powers the Chainlink protocol. The LINK Network is a fully decentralized Oracle network that provides smart contracts to enable the sending of payments from the contract to bank accounts and payment networks. Like OMG, LINK has been a hard runner and responds well to upward movements in the market. Chart time!
Entries: 29.07, 28.70, 27.84, 27, 26.15, 25.10
Targets: 30.18, 30.73, 32.25, 33.52, 35.13, 37
ZEC (ZCash)
ZCash is a cryptocurrency with a decentralized blockchain that seeks to provide anonymity for its users and their transactions. ZCash enables a range of public and private transaction types. Public addresses can send “shielded” transactions to private addresses, or transactions can either be fully private or fully public. ZCash makes use of Zero-Knowledge proofs (or “zk-SNARKS”) in order to keep information about the sender, receiver, and the transacted amount private whenever a “shielded” ZEC transaction is made. ZEC got hit hard by the Crypto selloff last week but we think it is due for a pop. Let’s see the chart!
Entries: 131.45, 129.15, 127.30, 123.50, 120.75, 118.65
Targets: 140.50, 143.75 150.30, 155.85, 160.75, 165.40, 171
After a tumultuous week like this, where do we stand? We’re cautiously still bullish. BTC seems to be holding relatively steady and recovering on an upwards trajectory, but if we near the $44K level we’ll need to see a confident, pronounced bounce to keep our bullish market sentiment strong. A sluggish slide downwards from this point risks awakening a bearish era, and from there, the likelihood of grumpy bears with porridge that’s just right could be the near-term reality. So we say unto you Yeets, “let's think good vibes, bro. Good vibes only!”
👀 Pt. 4: The Whale Watchlist Picks
Made possible with help from the @unusualwhales Alerts and Flow Tool. Sign up here!
Contributors/Tipsters: The Discord Gang Gang and Uncle ABU
Whale WatchList:
Yo! This week we got a special guest in the house, and he goes by the name of...Uncle ABU. He’s a chart guy, and I’m a flow guy—we set aside our petty differences over whether In-n-Out or Chic-Fil-A is better (it’s In-n-Out) and joined forces for this one. Let’s see if we can get some scores off the alley-oop for ya…
📞Calls: ⭐SNAP, LCID, NOW, FUBO, FSLR
⭐️ = Milt’s Pick
📞 Calls:
⭐️ 1. SNAP Calls
I feel like we’re obsessed with this ticker at this point, so here I am again, with SNAP in another watchlist. Looks really good here, be sure to SNAP me pictures of you blowing your account on this one.
🐳 SNAP: Unusual Whales Alert
🌊 SNAP: Flow reading (10k+ Premium)
📈 SNAP: Flow Chart (80% 🐂)
⌚️SNAP: Expirations and Strike
⌚️ Expirations: 9/17🐂
🔨 Strikes: 61🐂 75🐻
📊 : Chart (4 hr)
This triangle wants that action, boss.
📝 SNAP: Levels
Upside: 75.3, 76.5, 78.3
Downside: 73.3, 72.5, 71.5, 70.8
2. LCID Calls
This one will make my friend @billspacman happy. LCID had a resilient day Friday and is showing quite a bit of OTM activity.
🐳 LCID: Unusual Whales Alert
🌊 LCID: Flow reading (1k+ Premium)
📈 LCID: Flow Chart (72% 🐂)
⌚️LCID: Expirations and Strike
⌚️ Exp: 9/17, 10/15, LEAPs 🔨 Strike: 20
📊 LCID: Chart (4 hr)
Bull flagging here right by trendline resistance. If it breaks, fly.
📝 LCID: Levels
Upside: 21.15, 24.5, 27.4
Downside: 18.9, 17.2
3. NOW Calls
A bit pricey, but on a fantastic uptrend with good technicals. Buy NOW NOW, heh heh
🐳 NOW: Unusual Whales Alert
None recent
🌊 NOW: Flow reading
📈 NOW: Flow Chart (88% 🐂)
⌚️NOW: Expirations and Strike
⌚️ Expirations: 9/17
🔨 Strikes: 600, 615
📊 NOW: Chart (1 hr)
Could trigger here if it gets past 650
📝 NOW: Levels
Upside: 650, 680
Downside: 618, 600, 562
4. FUBO Calls
I was a long suffering bagholder from 40 lmao. Please fly.
🐳 FUBO: Unusual Whales Alert
🌊 FUBO: Flow reading
📈 FUBO: Flow Chart
⌚️FUBO: Expirations and Strike
⌚️ Expiration: 9/17, 10/15, LEAPs
🔨 Strike: 30, 35
📊 FUBO: Chart (4 hr)
Triangle wants to pop if it can break and retest the upper trendline
📝 FUBO: Levels
Upside:
32.17, 34.8, 39.5
Downside:
29, 24.8, 20.5
5. FSLR Calls
Tends to make you move pretty volatile, especially after that wrecking earlier in the year, but looking like it’s at good buy levels here.
🐳 FSLR: Unusual Whales Alert
None recent
🌊 FSLR: Flow reading (5k+ Premium)
📈 FSLR: Flow Chart (67%🐂)
⌚️FSLR: Expirations and Strikes
⌚️Expirations: 10/15, LEAP🐂 10/8🐂 & 🐻 🔨Strikes: 100
📊 FSLR: Chart
📝 FSLR: Levels
Upside: 100, 101.75, 105.15
Downside: 99.2, 97.75, 96.33
Pt. 6: Weather: SPY & QQQ Forecast by @daarkmaagician 🌦
Below is the chart & info for a SPY & QQQ forecast from @daarkmaagician, his DISCORD is the place to be (YEETers get two weeks free!). I’ve attached his accompanying text as an image with the photo below.
BONUS: With the quad witching coming, Dark has gone the extra mile with SPX AND VXX charts!
SPY/QQQ Charts Legend:
Solid Blue= ATH, Green= Dark Pool Buys, Red= Dark Pool Sells, Purple= Dark Pools, Orange= Supports/Resistances, Teal= 9ema
Make sure you follow @daarkmaagician to get updates on the indexes daily!
SPY Forecast:
SPX/SPY Forecast Charts:
QQQ Forecast:
QQQ Charts:
VXX Chart:
Pt. 6: TLDR & GOODBYE ✌️
TLDR:
Pt. 2: B-A-T 8: Intro to MACD indicator
Pt. 3: Cryptocurrency analysis
Pt. 4: The YEET Watchlist—📞Calls: : ⭐SNAP, LCID, NOW, FUBO, FSLR
Pt. 5: SPY and QQQ Forecast with BONUS SPX and VXX charts by @daarkmaagician
Goodbye and thanks for reading! Questions, scoops, comments @yourboymilt or /u/alldatdalton. See you next week! ✌
YEET no. 21: M O 🌕 N
I love these plz dont stop