Traders,
I hope you all had a great week! As mentioned, I wasn’t trading last week, and for the most part, will be out next week. But, as part of my routine, I like to stay up to date with current setups and themes.
Here are some of the current setups that have caught my attention for the upcoming week.
Higher Low, Continuation in UNH: UNH was previously on the list a couple of weeks ago, breaking out of its base. That setup followed through perfectly. Now, there is an equally attractive setup in the name, albeit entirely different. If UNH can push above Friday’s high and hold above that level, its 5-day SMA and its 10-day SMA, it could be beginning a continuation to the upside in its new uptrend. So, that would be the long signal, with a stop at the LOD. The stop would be a trail against the previous LOD, targeting 1-ATR upmoves for piecing out.
*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 NVDA: It was a hell of a week to miss last week, with several names and themes breaking out of monster bases with extreme follow-through. Whilst things seem frothy, they can remain that way for longer than expected. So, why not stalk bases setting up in a bullish manner? NVDA looks attractive to me. It’s consolidating above all key SMAs with a push above Friday’s high and $180 the ultimate trigger for momentum. A push over that level and relative strength would be the long trigger, with a LOD stop and ATR targets similar to UNH.
*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 ORCL: Similar to NVDA, I like ORCL if it can show some relative strength and hold above Friday’s high. It’s done a good job digesting the recent earnings gap. So, if ORCL can hold over Friday’s high with relative strength, it makes sense to be long against LOD or the intraday VWAP, depending on the setup. I see $320 – $340 as obvious potential resistance zones and profit targets.
*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 AGMH: Friday’s runner on the small-cap front. Post blow-off intraday it created a ton of bagholders after blowing out all eager and early shorts. Any push back into $12+ and failed follow-through would be a potential trigger to short against the HOD for momentum lower intraday. Not a swing idea given the float, current small-cap environment, and potential for a liquidity crisis.
*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.
Cautious Shorting Frontside, Waiting for a Market Shift: This list is only beneficial if things continue spectacularly to the upside. And perhaps the music stops briefly, and we see the market come off. If we see signs of slowing momentum in high-growth, speculation names, these will be some of the go-to short names: OKLO, BE, IONQ, RGTI, RR, amongst several others. Again, nothing to do now, and the better trade was the long side. But given I wasn’t around last week, if they continue to squeeze out, the opportunity will shift to a potential reversion in the days/weeks to come.
*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.
Thoughts on OPEN: It’s not a watchlist right now without mentioning OPEN.
The market we’re in certainly allows for things to go a lot further than you think! But, with that being said, $10 – $10.5 is holding up exceptionally well as resistance. Previous similar setups and cases of mine state that the failed pops into $10-$10.50 are the trigger to enter short, with a stop against $10.85 – $11ish. If pops continue to fail, it could experience a slow fade over multiple days toward $9 and then $8.
*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.