Traders,
As always, I look forward to sharing some of my top ideas with you for the upcoming week. Of course, Friday was a significant change in character and a shift in momentum. With many leading names now breaking below major support and short-term key SMAs, I won’t be looking for dip-buys unless we get capitulatory moves or a reclaim of key short-term SMAs / support and continue to base.
With that in mind, let’s get right into it.
Capitulatory / Washout Long in SOXL: The only long I’d be looking to allocate risk to in semis / SOXL would be in the event we get a gap-down / significant wash lower. If that were to happen, I’d look for a lower-timeframe reversion trade toward the intraday or multi-day VWAP. Specifically, I would want a higher low to confirm or significant capitulatory volume on a downmove before getting long against the LOD for an intraday 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.
Relief Bounce in RKLB: Ahead of the SpaceX IPO on Friday, and taking into account the significant selloff we’ve seen in space stocks, I’d be open to an intraday / multi-day bounce in RKLB. Specifically, I’d look for a washout toward higher-timeframe support near $100 to hold before entering long. Alternatively, I’d look for a reclaim of $115 support and an intraday consolidation breakout to enter long.
*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 / Pops to Short in STI: Fantastic intraday move-to-move short opportunities on Friday in STI, after the pre-market blow-off. If this pushes back toward Friday’s key resistance levels near $40 or $45 and fails to follow through, I’d look to short against the HOD, targeting an initial move back toward $30 support.
*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 RMSG: Nice unwind on Friday, with clean levels to trade against going forward should this have a secondary push higher. Specifically, I’ll be watching this for failed follow-through near $2.2 and $3, with a similar plan and focus to STI. Of course, it goes without saying that if the move reclaims and fails to stuff/break the intraday uptrend or VWAP, I won’t focus on the short side.
*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 Trading in BTC (IBIT): Does Bitcoin continue to consolidate near the all-important 60k level before beginning another leg lower? Or does it have consecutive inside days before taking out the prior high of day and shaking out shorts and staging an impressive intraday rally? I have no position now, but I’m looking to trade the momentum in either scenario. For example, if we break below 60k after 3+ days of consolidation near the lows, I’ll be short. Alternatively, if we display some relative strength and take out the prior day’s high, I’ll be positioned long, focusing on IBIT and MSTR.
*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.