Traders,
As always, I look forward to sharing some of my top ideas for the upcoming week with you all.
There’s a ton of opinions and predictions floating around online right now, be it calling for a repeat of the dotcom crash or calling for weeks of vertical upward momentum. As always, I’m purely focused on price action, following the trend, volume, and themes. When price action shifts and confirms a short-term top, whether in semis SOXL or memory SNDK, I’ll be there to short. Until then, while the trend and momentum remain intact, I’m definitely not trying to predict/force when and how these top…Price Action is King.
So, with that being said, here are some charts that stand out to me for the upcoming week:
APLD: For a continuation or breakout setup, I’ll be keeping a close eye on APLD / the sector. Why? While memory and semis are significantly extended, many names within the data center industry have yet to exhaust. APLD, for example, recently took out major resistance and has spent a couple of days turning that zone into potential newfound support. If 40 continues to hold up as support, and we then take out Friday / Thursday’s high, I will be in with a starter against LOD, and looking to add through recent 52-week highs around 44.25.
*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.
NBIS: Nebius, on the other hand, has extended more than APLD. With NBIS, though, I’d be looking to get long on a hold/flush to the 10 and 20-day SMA once it reclaims vwap. Alternatively, I would be looking for a multi-day breakout swing long trade, if the stock bases for several days and then breaks through 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.
CIFR: Similar to APLD, CIFR has so far done a good job holding above 20 prior resistance. If the industry gets going, I’ll have this on watch for a push above 22 to get long against LOD for a multi-day long swing 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.
MSFT: We saw some outlier strength in software last week, which was notable to say the least. MSFT stands out to me within the sector for its technical positioning. After several weeks of basing, its 100-day is now acting as firm resistance and the breakout spot. If software continues to have a bid, and MSFT’s technical positioning continues to shape up and hold, I’ll look to get long above the developing bull flag’s 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.
PL: Outlier strength in some space stocks on Friday, led by RKLB. PL’s looking great to me, having built out a lengthy base near highs. I’ll look to position long if this takes out 41 for a swing long breakout trade.
*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.
SOXL: Too extended for me to look for fresh longs here. On any outlier gaps to the upside, I’ll follow the same playbook as I did last week, looking for intraday short scalps if we fail at major intraday resistance levels / hold weak sub VWAP. Of course, the bigger trade would be 200+ for the mean reversion opp. On the flip side, I’m hoping for a pullback/correction over time (base) for fresh breakout momentum trades in the sector.
*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 MU INTC: Can’t do a watchlist without mentioning these stocks, of course. Am I bullish overall, long-term? Yes. But in the short term, I cannot chase these prices for long, given how overbought we are. So, any failed follow-through/blow-off action to the upside/change of character and weak holds sub VWAP across the board, and I will be short. Similar to SOXL, if we correct and base, I’ll then focus on fresh long opportunities.
*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.