Traders,
For the most part, the approach will be highly similar to last week’s. That’s because, at the time of writing, there’s seemingly no major news as of yet regarding the situation in the Middle East. Of course, that could change in an instant, so I’ll be focused on headlines and reactive trades across the board until news and price action confirm a trade-to-hold approach.
Alright, let’s start this week’s watchlist with some relative-strength names that look like they want higher.
Consolidation Breakout in SNDK: The relative strength in Sandisk over the prior few weeks has been notable, to say the least. Now, whilst consolidation breakout swing trades have not been working in the current market, I still want to keep this on close watch for a breakout over last week’s high / $700.
*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.
It’s proven over the past few months that it’s got serious momentum behind its moves, along with the narrative and relative strength, making it too good to ignore. I’ll be paying close attention to this for a breakout through resistance to enter long, with a LOD stop. The plan would be to cover a chunk into 1-ATR / extension from VWAP, and trail the rest against LOD for a swing.
In the same breadth, MU is right there as well. It’s displayed major rel. Strength over the past few weeks and has set up a fantastic bull flag. I’ll want to be involved long if this takes out $437 – $450 spots of resistance, for a swing. In terms of trade management, it’s the same approach as SNDK.
*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.
Again, consolidation breakouts have not worked well or consistently over the past few months, so I’m in no rush here… especially if the market remains weak and takes out the 200-day. The above two names will be high on the radar if the market bounces, perhaps off favorable developments in the Middle East. If that were to happen, I would especially want to be long stocks that have held up best recently.
Another name, which has also shown fantastic relative strength and bucked the market’s trend, is DELL, following its earnings at the end of Feb. I’ll closely monitor this name as well, if the above scenario plays out, for continuation above $ 153-ish.
*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.
USO: It’s catalyst and headline-driven right now. And who knows what comes out this weekend? Therefore, I’ll just be looking to react to breaking news until things settle or we get a headline that changes the narrative entirely for oil. So, for example, if allies and other countries, maybe with Iran’s permission, are allowed to pass through the Strait safely, the situation could change rapidly… and I’ll have a bias toward intraday shorting USO. Without such a catalyst, I’ll be hands-off, just waiting on the sidelines for something to hit the tape.
*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.
Pops to Short in Oil Small-Caps: EONR, TPET, and BATL are my three main oil small-caps to short pops / failed follow-through / lower highs in. For TPET and BATL, for example, I’ll be focused on re-shorting them into any resistance levels from last week.
TPET – I’ll be looking to re-short at $1.8-$2.
*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.
BATL – ideally, we get a push back toward $22-$24.
*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.
EONR – I’ll be focused on and failed reclaim attempts toward $1.5-$1.6. If it pops back into some resistance from Friday fails, I’ll position short against the intraday HOD for a multi-day swing potentially.
*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.