Monday, August 4, 2025

RDDT Just Handed Me What I've Been Waiting For

Trade of the Day Wake-Up Watchlist

"When you've got a perfect aftershock setup meeting institutional accumulation, that initial spike usually isn't the end of the story."

Nate Bear, Lead Technical Tactician, Monument Traders Alliance

Nate Bear

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—Ryan Fitzwater, Monument Traders Alliance


Hey Gang,

You know what?

I'm looking at RDDT heading into this week, and man, this thing just handed me exactly what I've been waiting for.

While everyone's either avoiding the earnings aftermath or chasing last week's momentum, RDDT just proved my aftershock strategy works perfectly.

Thursday night they moved 20%+ when Wall Street expected 10.5% - that's nearly 2x my 1.5x rule.

And I'm like, okay, this is exactly what I want to see.

Here's What I'm Watching

So RDDT's got these beautiful stacked EMAs on both the daily and monthly timeframes right now.

When I see EMAs stacked like this after a massive aftershock move, that tells me institutional money is positioning for higher prices.

It means the trend structure is healthy and there's serious momentum building underneath despite all the market noise.

Plus we're trading right off those 52-week highs in the high $180s with a clear runway back to the previous highs around 230.

I think this is exactly the kind of setup I love to find - proven aftershock validation meeting clean technical momentum.

 

The Follow-Through I'm Banking On

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Because if you wait too long, it could be too late.

Here's what gets me excited about this week - RDDT just guided for 55% Q3 revenue growth. They hit $500 million in Q2 revenue, up 78% year-over-year. Daily active users jumped 21% to 110 million.

They're literally becoming the #1 most cited domain for AI across all models, and their ad business is on fire with 84% year-over-year growth.

Friday I picked up OTM calls expiring on August 15 , and now I'm watching to see if that aftershock momentum carries into this week.

Why This Setup Works

Look, I get it - jumping into something that already moved 20% feels like chasing.

But that's exactly why this aftershock strategy works.

When you've got a perfect 2x expected move meeting institutional accumulation, that initial spike usually isn't the end of the story.

The earnings guidance gives institutions a reason to keep adding.

Those stacked EMAs tell me smart money is already positioned. And this massive beat over expectations?

That's my signal that momentum has room to run.

I think this is what I mean when I say the aftershocks work - you just have to be methodical about finding the right setups.

Your Action Plan

I'm looking to add to my position on any technical strength.

Those stacked EMAs suggest energy is building, and when this thing starts moving on continued momentum, I think that 55% growth guidance becomes the narrative that drives follow-through back toward those $230 highs.

This is exactly the kind of aftershock setup I've been finding while everyone else waits for perfect conditions.

The market gave us blood in the streets Friday, but RDDT's showing me exactly why I focus on earnings winners with proven momentum heading into a new week.

If you'd like to learn more about the mechanics of the strategy, check this out.

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