Traders, I look forward to sharing many of my top ideas for the upcoming week, including my entry and exit targets.
So, without any delay, let’s get right into it.
Small-Cap, Low Float Oil Stocks
With the situation in the Middle East, low float oil names such as RBNE, HUSA, INDO, and several others were significantly in play on Friday. HUSA and RBNE especially made for fantastic trading vehicles. I capitalized on both sides, long and short. Heading into the weekend, I used some of the cushion I had built and maintained some long exposure.
With tensions rising and the situation quickly evolving over the weekend, anything is possible. However, with oil likely to gap, I expect early morning action in small-cap oil names. Similar to my plan in CRCL last week, I’ll be looking for early morning momentum and a squeeze higher in the pre-market in several small-cap oil names, with the two main focuses being HUSA and RBNE.
*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.
I’ll shift my focus to short IF and once they squeeze out and exhaust in the early hours. Alternatively, if the situation changes, and they fail to gap and re-test Friday’s high, I’ll shift my focus to looking for failed follow-through against key levels from Friday to short intraday. Just remember, anything is possible…don’t get too biased. If they squeeze higher, follow-through to the upside similar to INDO back in March 2022 (it went from $15 to $86), I’ll patiently wait until the backside is confirmed. At that point, I’ll look to position short after the momentum shifts and maintain a core position for a multi-day swing short.
Small-cap oil names, the energy sector, and the overall market will likely be the primary focus for intraday action, given the current developments. But, here are some additional ideas on the back burner for the upcoming week:
Consolidation Breakdown in CRWV
I wouldn’t be looking to position in CRWV until a key level is broken and proven to be firm resistance. After a triple-digit move from its IPO, it continues to consolidate near highs. However, it’s beginning to show some signs of exhaustion as it struggles to hold the 10-day SMA. Suppose CRWV can break and hold below Friday’s low. In that case, I’ll look to get short against that area or the high of the day (HOD), depending on the intraday setup, targeting a move toward the 20-day simple moving average (SMA), which aligns with previous resistance and potential support near $125. If CRWV continues to base above $140s there’s no reason to position short.
*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.
Lower-High Short in Quantum Names
After last week’s failed move higher, I’d be looking to short pops in quantum stocks, specifically QUBT. Importantly, I’m not looking to chase weakness at all. Instead, I’d look for QUBT to return to a previous failure zone and area of support, which might now act as both supply and resistance going forward. For me, that area is $17.5 – $18.5, two considerable areas of potential resistance going forward.
*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 Thoughts
For potential swing longs, across the board, I’m seeing several charts of leading names within hot sectors still forming. For the upcoming week, I’ll monitor several names and sectors, but for the most part, I am in no rush to initiate positions. This is especially relevant for ALAB, HIMS, TSLA, and NBIS. As I mentioned in my recent IA meeting, a pullback in the market and a fresh higher low within this uptrend would be healthy, allowing leading names to reset, rest, consolidate, and provide fresh skewed risk-reward entries for continuation.