Kristjan Kullamägi (Qullamaggie): Stream 21 - Stream 25 [Nov 2019] - Notes
Over the months I have gone through every stream that Kristjan Kullamägi (@Qullamaggie), a prolific momentum swing trader, has ever posted. Below I have categorized my notes into topics relating to his streams.
For reference, the chart below shows the overall market KK was trading in, at the time of the streams:
Stream #21: “Earnings, oil and China! Nov 4, 2019”
New Trader Mistakes:
One of the biggest mistakes traders make is they try too hard, the markets are all about waiting for the right setups. That’s what I’ve been doing, now I’m just managing the positions.
Market Sentiment:
When the markets are in a range, nothing has follow through, like stocks break out and then get slammed down again, break out, get slammed down, because the indices are in a range and most stocks do what the market does, 4 out of 5 stocks do what in the market does, if the market goes down stocks go down, if the market goes up most stocks go up, generally.
Most stocks have the biggest moves when the market is going higher, best times in the market were 2017 when the markets were straight up for a year without any major pullback. It was my biggest year, and the first 4 to 5 months of this year when they went straight up without any pullbacks, so when the indices have big powerful moves that usually also means the stocks underneath have big powerful moves; a clean lower volatility trending market, that’s the best time to be a swing/position trader.
$SPY - Daily Chart - 2017
Biotechs
There’s a lot of money to be made in biotech stocks bc those things can move irrespective of the market, if the news are good enough they don’t care about the market they’re gonna go.
Stream #22: “Earnings, SaaS weakness, China breakouts. Nov 5, 2019”
*No helpful information in this stream
Stream 23 (Earnings season. Nov 6, 2019)
Situational Awareness:
You just have to look at things position for position, some days things are going up, some days everything is going down, some days are mixed.
Parabolic Short Setups:
When you have a stock up multiple days in a row, ie. 3 days in a row up over 60%, then the third day when it reverses, when it takes out Opening Range Lows, one can find really good r/r setups, this is the way he built a small account to a big account, finding opportunities like that.
Stream #24: “Great earnings breakouts. Nov 7, 2019”
Company Announcing Bankruptcy:
Some stocks that are beaten down and about to go bankrupt, then they announce they’re hiring a restructuring firm, like MNK 0.00%↑ bounced 170% in a few days and that was the low.
Same thing happened to CNK 0.00%↑ a few years back, was beaten down to years, had a big gap down, and then that was pretty much the low then it bounced over 300% in the next few months. That could be a tool to have in one’s toolbox, kinda interesting phenomenon.
Another example more recently was Tupperware Brands Corporation: TUP 0.00%↑ or WeWork Inc. (now delisted), where, after announcing bankruptcy, there stock skyrocketed.
$TUP - Daily Chart
Parabolic Short Setups:
He doesn't really like shorting low-priced stocks, just bc of mathematics, they can very easily double even if they have already doubled and doubled again.
Stream #25: “Slow earnings day! Nov 8, 2019”
Swing Trading Wisdom:
If you can find good charts with good EPS/revenue growth and estimates, that’s a winning scenario.
Risk to Reward:
Always bet more on stuff I like, that’s how it should be, you should never have static risk never ever! That’s how you make money, the higher your conviction the more you should bet. But to get conviction you need experience you need to make a lot of mistakes.
Index:
Stream 21 - 25 [Nov 2019] - Notes
Hello, can you show what type of indicators you use in your Trading view platform, thanks!