Monday, July 7, 2025

While everyone chases gap-ups, I'm buying this pullback

Trade of the Day Wake-Up Watchlist

"DG has a daily squeeze, squeeze on the 195-minute, 130-minute AND the 78-minute timeframes. That's FOUR squeezes! You don't see that every day."

Nate Bear, Lead Technical Tactician, Monument Traders Alliance

Nate Bear

Hey gang,

All right, so look at this market right now.

I'm officially starting to feel like these markets are getting a little bit too frothy for me to be comfortable with. I mean, the SPY is almost at 2 ATR on the daily, which is insane.

But you know what? While everyone's chasing these gap ups without news, I'm looking at DG here and I'm like - holy smokes, this is exactly what you want to see.

Look at What DG is Doing Right Here

Okay, so check this out.

DG is pulling back into support at $112.50, and we're about to get a buy signal. You know what I love about this? We're getting what's called a pullback to the point of control.

Let me explain this real quick - the point of control is basically where the most volume traded over a period.

It's like the "fair value" zone where buyers and sellers agreed this thing was worth owning. When a stock pulls back to that level after a run? That's your second chance at the price everyone thought was reasonable.

And look at this - you can see we're getting an overbought, oversold signal here. We're about to get a buy signal on DG.

 

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So the market's up here at plus 1.5 to 2 ATR - that's Average True Range, gang. When you get above plus 1 ATR, you're extended. At plus 2 ATR? That's like, probably a good time to start thinking about hedges territory.

But DG? Look at this. It's doing the exact opposite. While the indexes are going nuts, DG is setting up this beautiful pullback buy.

The Setup That's Got Me Excited

All right, so I added both the July 11th OTM calls- that's my lotto play for next week. And then I'm also adding to the swing trade, the July 18th OTM calls.

And wait - hold on, gang. Look at this. DG has a daily squeeze, squeeze on the 195-minute, 130-minute AND the 78-minute timeframes. That's FOUR squeezes! You don't see that every day. That's absolutely wild.

You know what I see when I zoom out?

Still have a trend, still have a pattern, and now FOUR squeezes across multiple timeframes. It's pulling back into the point of control. There's nothing wrong with this setup.

Why This Actually Works

Look, not all stocks go up on all days. I know that seems so obvious, but it's hard to remember when the market's ripping like this. The question we should ask ourselves is - is the setup still valid? If it is, then there's just nothing to do. You just sit and be patient.

And DG down here?

Man, you're almost getting a buy cycle down here from the buy zone as well. There's support at $112.50.

Your Action Plan

While everyone else is chasing these gap ups that are not on earnings or news or something significant, DG is giving you this textbook entry with defined risk.

Look at this pullback - it's beautiful. You've got support, you've got the point of control, you've got an intact squeeze pattern across FOUR timeframes. That's the trifecta, gang.

I'm also always hunting for a completely different type of opportunity - Opening Bell Aftershocks.

These are explosive moves that happen in the first few minutes after the market opens, when most traders are still drinking their coffee.

I recently turned a simple trade on APP into a 334% gain -- in just 11 minutes after the market opened.

The next Opening Bell Aftershock could happen as soon as today at 9:30 AM... so don't wait.

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