- Dive deep into the four charts I couldn’t ignore throughout 2021…
- Why these charts stick out to me (and how you can find similar plays of your own)…
- PLUS — how broad market moves can affect individual momentum stocks…
The final weeks of December are here as 2021 comes to a close!
The market’s been very volatile this month. That’s a welcome sight for options traders like me. I hope Evolvers have booked some solid gains through the whipsaw moves.
As things shape up into the final few weeks of the year, four charts stick out to me. They’ve been near the top of my watchlist every single day this year.
I’ve been watching these stocks for a long time now. I know them like the back of my hand. Let’s go over why I can’t ignore them — and why you shouldn’t either.
Nvidia Corporation (NASDAQ: NVDA)
NVDA has been one of my top stocks to trade throughout 2021.
The popular semiconductor manufacturer consistently made headlines through regularly incredible earnings reports, cryptocurrency’s continued strength, and a highly-publicized 4-to-1 stock split.
But the reason NVDA is so amazing to trade is that the chart respects predictable indicators.
When NVDA stock hits a big round number, it tends to back off shortly thereafter. This is a dream for negative-bias traders like me.
As long as I’m disciplined with my timing and execution, I can usually count on NVDA breaking down at key support or resistance levels.
I’ve traded NVDA puts multiple times this year and it remains on my watchlists for a reason.
It’s a widely-traded, mega-volatile momentum stock where the reversals to the bottom are just as incredible as the ramps to the moon.
Tesla Inc. (NASDAQ: TSLA)
Another stock I’ve become intimately familiar with this year is TSLA.
The chart checks a lot of my boxes. It displays huge gains in a short amount of time, experiences sharp reversals, and reacts strongly to news-driven catalysts.
Plus, CEO Elon Musk acts as a proxy for the entire momentum stock universe…
We’ve all seen how effective he can be in this regard. One tweet from Elon could make or break the week for TSLA stock.
This was obvious on Monday of this week, December 13, when TSLA struggled to hold $1,000. As soon as the share price dipped to $999, a huge wave of selling came through, sending TSLA down to $961 at the time of this writing.
This would’ve been a SLAM DUNK put trade (had you been watching the $1,000 level). TSLA has shown this kind of predictable reversal throughout 2021, which is why I’ve kept it high on my watchlists.
Unless you’ve been living under a rock, you’ve probably spent much of 2021 listening to retail traders talk about BTC and crypto stocks.
Let’s face it … crypto has been impossible to ignore this year. It’s an absolute retail rocketship that’s shown zero signs of slowing down … until recently.
In mid-November, BTC’s big reversal at $67,000 sent the crypto markets into a near-term downtrend.
Big picture: BTC is down 26% in the past month, with many adjacent altcoins experiencing even sharper dips.
When BTC dumps, it dumps HARD (and brings the entire crypto market with it). This is why I’ve been paying attention throughout this year.
The broad moves in the BTC chart affect a handful of optionable crypto stocks like MARA, RIOT, and BITO.
In other words, you don’t need to set up a separate trading account to play crypto volatility. I’ve been trading the options on crypto stocks all year. I recommend that Evolvers watch them — and BTC — closely.
Apple Inc. (NASDAQ: AAPL)
What an insane year for AAPL — the stock is up 45%+ year-to-date, leading the Nasdaq to record highs.
The AAPL chart has continued to push higher and higher on impressive volume. Occasionally, AAPL trades sideways for a short period, but it hasn’t seen a sharp reversal yet.
I’ve been watching AAPL for a while now, expecting a major dip at some point. I don’t want to miss this, as a downside move in AAPL could be truly epic for put trading.
But I’m constantly reminding myself that timing is everything. Had I tried to be a hero and seriously shorted AAPL at any point this year, I would’ve gotten my face ripped off.
Instead, I’m sitting on the sidelines, patiently waiting for the perfect moment to strike. I think the dip is inevitable … I just don’t know when it’s likely to take place.
AAPL has been a major leader for tech stocks in 2021. I think it will take a broad market reversal in tech stocks for AAPL to see some serious downside.
I’ll be ready to buy puts when this happens, and I think Evolvers should prepare for this setup as well.
There you have it, Evolvers — four stocks that I’ve found at the top of my watchlist nearly every week in 2021.
These are epic momentum stocks. The charts are beauties — volatile, catalyst-driven, and ripe for options trading. Don’t sleep on them.
Hopefully, you now have a better understanding as to why I’m so interested in these charts. Bookmark them heading into 2022. We could see further opportunities in these names soon.