Traders,
Without further ado, let’s get right into some of my top ideas heading into the week!
And of course, we have to start off with SpaceX.
Reactive Trading in SpaceX: Some solid opportunities on Friday in SpaceX. A few textbook intraday IPO setups were present, including the opening print, opening drive, and range break. Some great action to go back and review and playbook.
Now, what am I thinking going forward? I’m not going to share my long-term thoughts here; that’s irrelevant. Rather, what am I looking for on day 2 and 3?
First off are the key levels to be aware of. $150 support and $155 support are two key levels from day 1 that I will be watching closely, ALONG with the 2-day VWAP, which will be near $165 potentially on day 2. In terms of resistance, the two main levels are $170 and around $175. Within Friday’s range, I will simply look for reactive scalps. The bigger opportunity would be a consolidation near either of the major support or resistance zones from Friday. If SPCX consolidates and churns near major support or resistance, I’ll look for a momentum intraday trade through that level. Ideally, if Friday’s AH gap continues and we hold Monday, we get a day 2/3 continuation to the upside before a bigger-picture fade opportunity materializes.
*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.
While on the topic of SPCX, a couple names I will be keeping tabs on as well:
SATS: Obviously have a significant holding in SPCX, and after Friday are trading at a discount, in theory. If SATS reclaims $115 or dips and confirms a higher low before reclaiming multi-VWAP, I’d look to get long and potentially swing a piece IF we close strong.
*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.
RKLB: Major sell-off from its 52-week high, back into higher timeframe support and prior all-time high pivot near $100. I’ll be watching to see if this finds some support and buyers regain control above the whole number.
*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.
Then, a number of large-caps are certainly holding up well and are on the verge of a continuation. But one thing to note is SPY’s recent bounce off the lows. On Friday, we pushed into converging 10 and 20-day SMAs. To trust breakouts going forward, I’d want to see the market firm up back above its short-term key SMAs, and not put in a lower high with those zones acting as resistance.
Names on Watch, IF we display relative strength and the market firms:
MRVL: All things being equal, MRVL’s consolidation presents a great entry opp if it can take out Friday’s high. It spent a decent amount of time holding near the highs, allowing the 5 and 10-day to coil, along with range contraction over the prior three days. Similar setups in INTC and MU as well.
*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.
DELL: Similarly, DELL is looking to break its pullback’s resistance. If this pushes back above its 10-day and holds, that momentum shift might be confirmed. But as I mentioned above, with the 10- and 20-day acting as resistance in a number of names and in the overall market, a lot needs to happen next week before I can trust buying breakouts again. So, as always, price action, market breadth, and relative strength and weakness will be key to gauge the action and probability of follow-through.
*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: Alternatively, if we get failed follow-through across many of the leading chip and memory names, and the market confirms a lower high / rejection at key SMAs, I’d likely focus my attention on a SOXL short position. Specifically, I’d want to see many of the names discussed above and in my recent IA meeting fail to hold their breakout levels / break back below Friday’s low. If failed breakout confirmation is present next week, I’d likely position short in SOXL against the HOD for a multi-day swing 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.