Traders,
I look forward to sharing several of my main ideas for the upcoming week with you all!
Along with my ideas, I’ll also share ideal entry and exit scenarios.
First things first, a couple of general thoughts. Continuing on from my comments during Thursday’s IA meeting, individual stocks and hot themes can top out long before the market pulls back.
In general, you want to be cautious of getting too bearish on the overall market until we begin to see lower highs and a hold under the 20-day SMA. Additionally, IWM found support on Thursday / Friday, and it still looks good for a breakout. RSP, equal-weighted S&P 500, held support well on Thursday and re-entered its bullish range on Friday. So with that constructive price action on Friday, there certainly isn’t a major reason to be overly bearish on the market. In fact, after Friday’s action, im leaning more bullish than bearish.
*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 TSLA: This was one of the best swing trades of the month, by far. One we discussed in detail ahead of the breakout in Inside Access. As I mentioned on Thursday, I’ll look to re-enter long only if the name continues to consolidate in this newfound range, with the low $440s / last week’s high serving as resistance and a breakout level. Alternatively, and ideally, we get a couple more days of sideways action before a breakout. How do I play this? I’d look for a breakout above resistance, with a LOD stop, and aim for a multi-day continuation to the upside, targeting a low-end of $ 460 and a high-end of $480.
P.S. Tesla is scheduled to report its Q3 delivery figures next week.
Lower High in OPEN: Keeping it simple in OPEN. Nice multi-day bounce on the backend of last week in the name. I’d only consider going short if this fails to follow through at key levels of resistance. For me, that would be a push and fail above or below $9.5. If the stock reclaims and holds over $9 – $10, then perhaps we see a final attempt in the short-term of a re-test of recent highs, and I won’t be interested in the short.
However, if it pushes early next week into $9-$9.50 and fails, confirming with a lower high, I’d position short against the lower high/ HOD and maintain a core short position if this closes weak on the day. Targets would be $8 initially, and a lofty target of $7.5 to $7.
*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.
Breakout Above $180 in NVDA: Nice hold after the failed push to new highs in NVDA. If the stock pushes back above $180 and begins to show leading strength, I’d consider a long against the LOD for a re-test of recent highs, trailing against previous LOD if it follows 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.
Relative Weakness in RGTI, I’d Look to Short: As outlined in Thursday’s meeting, IONQ was the pick of the quantum shorts due to its relative weakness and disconnect from RGTI. Now, the only way I’d look to short RGTI next week is if we see a disconnect and weakness against its peers and market. So, suppose RGTI holds below the VWAP and $31 support, for example, and that the correlation disconnects notably. In that case, I’d look for a short against VWAP or HOD reclaim, targeting $30 as target 1, and thereafter maintaining a small core short to see if it closes weak for a potential overnight hold. However, for now, while the theme holds up, I’m not overly bearish and don’t plan on being too aggressive at all. Ideally, and what would set up a much juicier trade would be further momentum and expansion to the upside.
*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:
MU: Looking for further build after this pullback, and a reclaim of its 10 and 5-day SMA for a potential long swing.
*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.
JD: Solid strength in China names last week, notably BABA. JD has been a considerable lagger and not the cleanest trader. But, if the name can push above last week’s high and its 200-day SMA, I’d consider a long against the LOD if it shows some strength intraday.
*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.
IREN: Fantastic short opportunity from Thursday, which played out wonderfully into the close and followed through on Friday. I’d consider looking for a bounce if this were to open weak and flush lower on Monday, below Friday’s low. Alternatively, I’d focus on the short side if this pushed back into potential supply levels from last week and displayed weakness thereafter; areas of interest: $45-$47.
*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.