Traders, I hope you’ve all had a wonderful weekend.
I look forward to sharing several of my top ideas with you for the upcoming week, including swing and intraday potential trades, as well as exit and entry scenarios.
Great commentary in the most recent IA meetings, where I discussed the shifting momentum I was noticing in the market, along with some warning signs, leading me to shift my focus last week to intraday trading versus swing long. That will remain the case whilst the market pulls back and many leading names finally reset.
So, let’s jump right into it, with a focus on intraday trading and setup this week.
Leaning Short in FIG: One of the standout opportunities last week, and one the desk was able to outperform on. First, the breakout over $110 on Thursday, followed by the short off the open on Friday on the major stuff, and failed follow-through. Textbook, well-defined setups and trading.
Going forward, I could see a day or two of opportunity until it consolidates/goes sideways, before picking a direction. So, my plan is to look for a push on Monday back toward $125 – $130 and failed follow-through to position short. Significant support and target 1 is $110. Thereafter, I’d be open to maintaining a core for $100 target 2 and mid-$90s final target.
Of course, should the stock reclaim and base above Friday’s resistance bands, the idea is void and not one to fight.
*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.
Liquidity Trap in VWAW: Great hold over the previous four days, forming a tight consolidation with clean levels to trade off of. From 250m shares traded on Day 1, to four days later, trading under 1m shares. The setup speaks for itself.
I’d be interested to go long if I see this grind above $9 and hold, perhaps with a trap or two along the way. I’d want to see volume slowly come back in above $9, followed by a push $9.5 – $10, where I’d be comfortable adding to the long, against the LOD. Thereafter, I’d be piecing out of the intraday long on extensions higher / high-highs intraday, and fully exit if it went parabolic / broke the uptrend / held below VWAP / made consecutive lower highs.
*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 JOBY: I had a few solid short scalps in JOBY on Friday, against $18 key level. I’m looking to short pops in the name on failed follow-through as long as $17.8 – $18 doesn’t reclaim and base. If pops fail and this holds sub Friday’s low, I’d be thinking about some potential air coming out of the name ahead of earnings. Earnings are on August 6.
*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.
Additional Ideas and Thoughts:
Relative Strength in MP: Another name with earnings scheduled for later in the week. $65 key level of resistance on watch for intraday momentum long scalps.
*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.
MWYN: I’ll have alerts set in this name for a push over day 2 VWAP for failed follow-through and a short opportunity.
*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.
LOBO: Similar thoughts to MWYN. As long as this doesn’t reclaim day 2 VWAP on declining volume and base, I will be looking to short failed pops higher toward $1 for intraday short opps.
*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.
TNON: Ideally $1.75 – $2 squeeze out and stuff for a short opportunity.
*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.
EQ: Very similar to the above plans. Alerts set in this name for another opportunity to short it if it can push back toward $1 and fail to 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.
Solid start to the month on Friday, mainly from intraday momentum and mean reversion setups. I’ll be continuing to focus on intraday opportunities until we see the market and several leading names in leading sectors begin to regain footing and base out. As always, it’s essential to make the necessary adjustments and flow where the opportunity lies.