Traders,
Week over week, as I discussed in recent IA meetings, it remains the same approach for me with prior adjustments remaining in place. Hell of a week, with awesome action early on with UGRO, and later followed by an intraday PR trade for me in VCX short. Not overstaying my welcome, catching the meat of the momentum move, and moving on is continuing to prove correct. Until we get that game-changing headline, I will continue to be a day trader, with less focus on swing/position trading. As such, this week’s watchlist will look a bit different from others.
First off, in the event we get negative news and a severe gap-down / extension to the downside in the coming days, this is what I will have on my bounce list:
MSFT: Beginning to speed up on the daily and going vertical to the downside. This is NOT something I am trying to step in front of. But if we capitulate in the market and MSFT reclaims VWAP intraday, or capitulates/speeds up intraday to the downside, I will begin to think about the bounce 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.
META: Different from MSFT in the sense that I would not be looking to hold this for a potential multi-day bounce. However, if META extends further along with the market, I’d look for a similar intraday blow-off to the downside, for an intraday mean-reversion long trade in it. Like MSFT, it’s beginning to speed up to the downside from its 5-day declining MA.
*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.
To add to the above: If the market were to capitulate to the downside on a severe gap down / breaking news, my GO-TO symbols would be USO (short), SPY (long), and VXX (short).
Alright, moving on to some individual names.
Re-short on Pops in VCX: Hell of an opportunity on Thursday, with the stock following through to the downside perfectly. Going forward, I will be in no rush to re-short at these prices, but if the tock were to bounce back into $275 – $320, I would be interested in re-shorting it once it fails to follow through and gives me a level intraday to trade against.
*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.
Stalking Dips in RKLB / Space Sector: With the SpaceX IPO looking more likely for sooner rather than later, I find it difficult to believe that RKLB enters stage 4 decline on the higher timeframe here. So, if it holds above the 200-day SMA / if the headline the market needs arrives, I’ll be long with a longer-term hold in mind. I am also closely monitoring UFO (sector ETF).
*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 RMSG: I’ve just got some alerts set in RMSG, given the Wednesday 250m volume traded, followed by 2 inside days and 1.3m shares traded on Friday.
*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.
Continuation in NVDA: If we experience weakness early next week without first seeing a significant gap lower, I’ll be watching NVDA closely for a continuation to the downside after breaking the all-important 170 level of support on Friday. In the event we experience another steady sell-side day in the broader market, this would be one of my go-to vehicles for shorting intraday momentum.
*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.