Traders,
Regarding the Macro/geopolitical/Middle East situation, I largely share the same views on USO (oil) and potential long opportunities off specific headlines as I did the last two weeks. So I won’t go over that again in this week’s watchlist.
Barring a U-turn on the M.E. situation, Friday’s action was not what the bulls wanted to see. The market (SPY) broke below the 200-day SMA on Thursday and extended lower on Friday. Some late-day comments from Trump weren’t enough to stage a reversal or engulfing move into the close. From a swing perspective, given the market-wide weak positioning, I’ll remain exceptionally selective until we reclaim key SMAs or a major headline drops. It’s a traders market right now.
So, for the upcoming week, let’s take a look at a few standout charts and opportunities.
Dip-Buys in NBIS: I’ve spoken about this one at length in recent IA meetings…so I’ll keep it brief here and just discuss further entry plans. Not only do I like the rel. strength that NBIS has shown against the overall market in recent weeks, I also like how it’s consolidating above prior resistance and key SMAs. If this continues to show notable strength, I’ll look to buy dips as long as it remains above the 20-day SMA for a higher-timeframe long position.
*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.
Momentum Short in HOOD: Side note – We are potentially one headline away from me being extremely long-biased across the board. So, any short biased plans could go out the window at a moment’s notice…. That is just the market we are in.
Ok, with HOOD, I like the sustained consolidation near lows over the past month+, and BTC breaking lower over the weekend. If HOOD breaks below Friday’s low and holds weak, I’d be looking for intraday short momentum setups.
*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.
Shorting Pops in SWMR: This is certainly not the easiest name to trade, given the liquidity and spread. However, if volume holds up, and this pushes back into $45+ and fails, I would short this intraday for a 1-day reversal. Not something I would look to swing. If it grinds higher / consolidates over multiple days, I would not be short-biased.
*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.
10-day SMA Short in CRCL: Awesome bounce in CRCL over the last few weeks, with the stock more than doubling. I’m not short biased on the company, just looking for a potential day or 2 fade opportunity. If the stock breaks below the 10-day SMA / support at 120, I would look for a short against the HOD/resistance. Potentially targeting a move toward the 20-day SMA near 105.
*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.
Failed-Follow Through in ANNA: Great momentum trader on Friday. It’s running with the M.E. theme. Following the multiple stuffs through $7.5 in the afternoon, that’s a key level to watch going forward. Ultimately, I am short-biased, but there are several ways this can play out, which will affect the grade I assign. If the stock breaks through resistance and stuffs, I’d short against the HOD for a possible reversal intraday. If it has an upper-range inside day, I might look for a liquidity trap on day 3 or 4. Alternatively, if it opens flat/slightly lower than 6 and bounces back into 7 and fails, I’d look for short scalps intraday.
*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.