 Welcome back with us folks a little bit of brain-picking tonight on why I decided to go with DAL Delta Airlines after earnings this morning now, you know that this morning Delta reported better than expected EPS, which was negative, but still and revenues were much better than expected as well, so This is the chart from yesterday Please apologize for the one minute, but we were scalping it Early in the day and you'll see why it's on the one minute. So this was yesterday before earnings so you see that it was a slow bleed until the end of day where There was a big drop just at the bell down to 4103 and Straight after that it started rising I mean they reported this morning, but if they were that bearish people would keep on Selling in my opinion. So what happened after they reported is This we had a little bit of a climb and people were kind of impressed because they were expected expecting more of a drop in lesser sales and Worse DPS and it was better than expected now What the way I see it is this If people were so bearish on it, we would have dropped Below yesterday's low. We did not and see what happens at the open. Now. This is the one minute and That dark green line is the 200 DMA oddly enough It gets a stop right on the 200 DMA And then it starts coming down Right, so we expect people taking profit Then it rises and it still gets rejected I mean we are pretty close to a straight line even if you know, we're I believe a little lower Going down but see this as resistance Now if Straight up let's say we open we go like this and straight up we see a candle and then a next candle up We know we're going to start to get bullish. We did not so basically we're waiting to see Where we're going to find support. We know the previous day was 41 on three and We did not get there and right away. We started picking up higher than this low so if we had been bearish We would have seen something like this Not hitting the lower at least not that much and then starting to fall down Follow our line. We were a little above here and this is where I alerted the 42 The 42 calls for this week Now it turned down where? Same spot same as this which is a little higher than that 4103 I believe was 4105 pennies away yet We are a little higher than the previous day and We're moving up. I mean this is after earnings. This is after people saw earnings that weren't that great Spy at that time was going that way. So basically we are going with the momentum of the day on a double bottom So basically this would have been the stop line Because we would get into bearish territories, which is lower than the previous day lower than Before earnings where people were selling up until that point and now that earnings have gone people are no longer selling Because we're a little higher than that point if we had been lower. I believe it would have flushed The idea was to see how we could bounce on that double bottom. So we alerted here I thought we could climb right away with spy. We did not we tested that line again and now it was a straight up here Why my Target was in the this area You see rejection rejection rejection rejection What's going to happen when it gets there? It was on high volume. I guess it poked through we were lucky enough to get 100% on that play as we reached in the money and then some however This was the initial target as we were not going through bullish We would Do this would have carried on but not started going down for a retest of that line, but the idea was to sell on Target for a very short duration Which is you know only a few minutes because this is the one-minute chart We're looking at here So the idea you have to look at your target if you want to sell on a specific target that you just you decide Ahead of time. I suggest you go see a video that I have done. I think it was last December and It's called conditional orders that you can set on thinkorswim where you Actually set a line. Let's say you want to sell your calls at a specific line. I believe this was 41 89 You can set say sell my call position at 41 89 so this avoids greed specifically if you are on a scalp So remember for this the idea was to look at previous day low Which was 41 oh three we never went below that low we bounced on it here very close to it and the idea is to go for reclaim of that resistance that we had pre-market and after the bell you've heard that one before telling me telling you that you know we start from the bottom and resistance of pre-market, this is exactly what we did here and I'm showing it. I'm showing it to you again so the more you see this happen the more you'll see that it's feasible to have a Bottom that you decide from the previous day or a very specific resistance point or support and Target is your Resistance at pre-market and in this particular case pre-market pre-market after the bell after the bell That's that's where we we actually sold. I Hope this makes sense. I hope you can learn a little bit from this and I'll see you again soon folks you