Hey Traders,
I hope you’ve all had a wonderful weekend!
Following up on my comments from my recent IA meeting, while there are certainly signs of a frothy, slightly euphoric market, I will continue to look for bullish consolidations that break out until we begin to see breakouts fail. Setups similar to what I mentioned on Thursday, like the QS and RKLB setup, just to name two of the setups that worked beautifully.
So, with that being said, let’s jump into it.
Consolidation Breakout in AAPL: Beautiful consolidation at a converging 10 and 5-day SMA. I’m beginning to like this setup a lot more after Friday’s pre-market dump and subsequent reclaim, as well as the strong close. I’ll be looking for some relative strength intraday in the name, and a hold above Friday’s high to initiate a long position for a breakout, with adds over $260 – a higher timeframe breakout level. I’d be open to trailing this against the previous LOD, but if the market turns and we get a change of character, I’d use discretion and cut most on a hold under VWAP.
*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.
Consolidation Breakout in GOOGL: Like AAPL, not the greatest MOMO names right now. But both can certainly trend for multiple days should they break out. In GOOGL, I’m loving the consolidation at the convergence of 10-, 20-, and 5-day SMAs. If this breaks Thursday’s high, I’d enter long with a LOD stop, ultimately targeting a move toward recent highs in the mid-$250s.
*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 DFLI: Beautiful small-cap multi-day runner with excellent volume. Shifting to short bias now after Friday’s intraday blow-off move and failure to reclaim $2. Now, if it reclaims $2 and churns, I wouldn’t be interested in a short. But, if this pops into $2 and stuffs, I’d look to size into a short against the HOD and target $1.6 – 1.3 as initial primary targets. I’d potentially leave a core on for a swing depending on the intraday sell action.
*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 Short in OPEN: Similar to what I mentioned during Thursday’s meeting, I’m keeping it simple in OPEN and looking to play the levels—lovely tight consolidation right now, with $9 resistance and $7.80 significant support. Above/below those levels, and we should see some expansion. Given the overhead and mass long exposure from retail, I’m favoring a short sub support for momentum, targeting a move toward $7. But if this reclaims $9, we could certainly see an intraday squeeze back up to $10. In that sense, I am open-minded and just looking to play within the expected intraday range.
*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 RGTI on the Short Side: One of the easiest trades of last week was the $31 breakout, as discussed in the IA meeting briefly. Now, however, after further expansion on Friday and some minor signals in the market of a potential cooling period, I’m focused solely on the short side. But, I won’t be short out of the gate next week. Instead, we need to see a major shift in character from this leading speculative name. So, some things I will be looking out for: continuation to the upside on day 3 or 4, setting up a mean reversion, and an A+ opportunity. Above/Below $40 stuff and begin to display rel. Weakness in the market. FRD setup and failure to reclaim. Overall market weakness and risk-off creep into the theme.
*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 Names on Watch for Continuation on Higher Lows and Breakouts: RKLB, QS, GEV, MP, SES, ETHA, IBIT.
*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.