If there is one thing that stands out from any conversation with Brian Shannon about the trading process, it is this:

For discretionary traders, there are no rules. Instead, there are "guidelines."

And because Brian is human, he occasionally breaks his guidelines and suffers the same consequences as anyone else. Everyone gets what they deserve. Even a trader of 30+ years like Brian Shannon.

If a trader buys the dip or sells the rip without a plan to control her risk then she, too, will get what she deserves. Eventually. The market is always on the hunt for our weaknesses.

Last week in Sonoma, we uncovered a bunch of potential trades that are setting up in a variety of sectors. But one of them is sending a glaring signal that it is ready for us to get involved right now, so let's not waste any time.

Check out this chart of CNX Resources Corp $CNX:

Going to skip the preamble as I'm currently at Portfolio Accelerator.

We've got an extremely timely idea that we just all discussed at a round table.

Specifically, the Bank of...

My analysts are bullish on Bank of America $BAC and for good reason:

Bank of America is on the verge of breaking out of a bearish-to-bullish reversal pattern.

As you can see in the lower pane, BAC recently resolved higher from a similar basing formation versus the broader market.

We like it long only if it is above 38.50 with a 2-4 months target of 50.

Options premiums are cheap, so lets keep it simple.

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As this bull market shows signs of resuming its march higher, we're setting our sights abroad because U.S. stocks don't have a monopoly on great setups. There are some great companies overseas that trade here in the U.S. that are also setting up for great stock rallies.

Today's trade is in a biopharma name.

In today’s Options Jam Session, we reviewed how the profits from one delta-neutral credit spread more than paid for the losses on another, and I demonstrated what to do with a big winner that has the potential to pay for a lot more losses while still leaving us in the green!

This is how trader math works. Lose frequently and small, win occasionally and big. That simple heuristic is the key to long-term success.

But of course, it’s not easy.

We have to battle against our strong urges to close out winning trades too soon.

In fact, in the $APH trade that I demonstrated in today’s session, you’ll see there were several opportunities for me to get scared and pull the trigger to exit BEFORE our big profits accrued. This is why having an unemotional plan in place ahead of time is so valuable.

Next to individual trading plans, these weekly review sessions are one of the most valuable things I do each week to keep myself on track with my trades.

Be sure to check out the full video!

I. AM. GOLD.

I mean, it's right there in the name. This company makes no bones about what they do. And I'm into it. Especially when I'm looking for a leveraged play into the metals sector for a potentially big move.

Buying here might not be for the feignt of heart, but if you love gap-no-go patterns with a long time horizon to play out, this might be the golden ticket.

All Star Charts chief options strategist @OptionsSean joins Yahoo Finance to discuss the meme stock craze: pic.twitter.com/OXp18lXl1I

— Yahoo Finance (@YahooFinance) May 14, 2024

It appears that “Meme Stock Mania” is back. Or we’re at least having an echo moment.

Cool. I’m all for it!

Whatever leads more sheep to slaughter, the better for those people who trade with plans and logic. People like you and me.

If we learned anything from the last go-’round, remember that it’s very hard to control our risks in these mania stocks – especially when we have to deal with trading halts that may or may not resolve in the direction we desire.

Fortunately, options traders have a unique and specific advantage over common stock traders – we can PRECISELY define our risks. Of course, this privilege comes with a cost: high options premiums.

In today's Flow Show, Steve Strazza and I talked about how this market is setting up to be potentially very problematic for short sellers.

And the most pain will likely be felt in the stocks that currently have a heavy short interest.

With this in mind, the short squeeze pond is where we want to be fishing for long ideas.

In the video above, you can watch how Steve and I developed today's trade idea in Wayfair $W.

In today’s Options Jam Session, I revealed my itchy feeling that stocks are on the cusp of “popping” higher. Looking at charts of $SPY and $QQQ and $WFC has me thinking that there’s a pile of tinder just waiting for a spark to ignite.

What will be the trigger that gets this wildfire in motion? I don’t know.

But I’m positioned for it with a good variety of sector, time frame, geographical, and time frame exposure.

Click through to see me review many of our open positions that are likely just getting a head start on the coming breakout…