Traders,
I hope you have been having a wonderful weekend.
I’m going to begin this week’s watchlist with the same opening message from last week’s, in case anyone missed it, and they still find themselves struggling to adapt: “For anyone struggling to adapt or to navigate the market right now, Bella recently put out a fantastic post and video. If you’re in a drawdown, struggling to adapt, and/or just looking to improve your game continuously, check it out in this video. He goes over, in detail, 8 trading lessons from a painful drawdown and the cure.”
Alright, turning the page to a fresh week and month, without further ado, here are my top watches coming into Monday.
Silver / Gold: My thoughts for both are similar for Monday. I’m just looking to be involved if there’s another extreme in either direction. Meaning, I’d be open to fading a gap higher and rip, and I’d be open to going long a weak open and flush. Of course, I want to see price action confirm and identify a key level to trade against before putting on the trade. So, for example, if SLV found support on a retracement toward the low end of Friday’s range and confirmed a higher low on the 5-min or even 15-min chart, I’d go long with a hard stop at the higher low. Given the enormity of Friday’s selloff, I’d be more open to stalking major flushes/weakness for intraday long opportunities, instead of looking to re-shorts near these prices.
*Please note that the prices and other statistics on this page are hypothetical, and do not reflect the impact, if any, of certain market factors such as liquidity, slippage and commissions.
SNDK: Exceptional story and numbers posted. Ideally, this has a bit more weakness after Friday’s profit-taking event. I’d love to see the stock fade back toward the mid- to low $500s before basing out and confirming a higher low on the daily. I’m leaning long bias, but of course, it needs to digest Friday’s move. So, I’m looking for a brief period of price digestion before potential price discovery takes place. In the days to come, I’ll monitor for the range to contract and volume to subside, ideally providing a better R: R entry for a long swing. I’ll look to get long if the stock builds a small base, continues to show relative strength and leading positioning, and breaks above the prior day’s high / range resistance.
*Please note that the prices and other statistics on this page are hypothetical, and do not reflect the impact, if any, of certain market factors such as liquidity, slippage and commissions.
Additional Ideas / General Thoughts:
Bitcoin: At the time of writing this, BTC is trading near 78k. It’s taken out its consolidation lows, with the next line in the sand and major support zone near the November 2024 breakout spot. Bitcoin / Ethereum ETFs will be solid trading vehicles if the range/fear/panic continues to increase in the upcoming week. Let’s see…
*Please note that the prices and other statistics on this page are hypothetical, and do not reflect the impact, if any, of certain market factors such as liquidity, slippage and commissions.
Rocket Lab and PL: 2 space/defense names that I have previously liked for continuation. But the daily/weekly tell a different story now. Rather than looking for immediate continuation and action, both names need to build out a base and higher low. It’s all about patience in this market and not getting chopped up on sub-par ideas. Wait for things to set up and come to you.
*Please note that the prices and other statistics on this page are hypothetical, and do not reflect the impact, if any, of certain market factors such as liquidity, slippage and commissions.
BE: Similar story with BE, and in fact, many other names that had false breakouts last week. The market is showing its hand, and I’m reacting to that price action. Therefore, for BE, I might only be interested in a position long IF the name can base above its 10-day SMA and build out another bull-flag. We had XLP and XLE, staples and oil and gas energy, led last week…not the greatest sign if you are looking for momentum swing trades.
*Please note that the prices and other statistics on this page are hypothetical, and do not reflect the impact, if any, of certain market factors such as liquidity, slippage and commissions.