Hello everyone, Barrie Einarson from Trade Ideas here, bringing you another edition of “What Makes This Trade Great.” Today, we have a really interesting trade to discuss, which I actually mentioned during our pre-market session. To Subscribe: https://go.trade-ideas.com/SHQ
Use Promo Code BARRIE15 for 15% off

Highlight of the Day: VIRT

One of the standout stocks for today is VIRT, which caught my eye for a couple of reasons. First, it’s an earnings play, which often provides good trading opportunities due to the volatility surrounding earnings announcements. VIRT had a nice pop in the pre-market, which immediately grabbed my attention.

Pre-Market Analysis

During the pre-market, VIRT was also flagged by our AI at an alert price of 26.04. Later, it showed up again in my “Gap Up and Go” strategy at 26.21. Recognizing these signals, I decided to take a position fairly early in the session. For me, entering a trade early means capturing the initial momentum and setting myself up for potential quick profits.

Initial Trade and Strategy

I took some profit off the table fairly quickly due to the choppy nature of the stock’s movement. However, I communicated to our trading room that if VIRT could break above 27 with authority, I would re-enter the trade. This level was crucial as it indicated a potential continuation of the bullish trend.

Re-Entry and Profit Taking

As predicted, VIRT broke above 27 and provided another excellent trading opportunity. From there, it climbed to 28 before showing any signs of pulling back. While I’m not sure where it will go from here, it’s clear that VIRT still has room to move based on historical price action when I looked to the left on the chart.

Observations and Market Context

What makes this trade particularly notable is how VIRT traded independently of the broader market. Despite the SPY moving down throughout the day, VIRT continued its upward trajectory. This is a classic example of an alpha stock, which moves based on its own fundamentals and catalysts rather than following the broader market trend.

I hope you found this breakdown of VIRT helpful. It’s a great example of identifying key levels, understanding market context, and executing a strategy based on solid analysis. I’ll be heading back into the trading room now, but I wish you all a great evening and look forward to seeing you tomorrow. Check out my homepage for more information.

Happy Trading!