Traders, I look forward to sharing some of my top ideas for the upcoming week with you all, including entry and exit plans.
First up:
Notable Relative Weakness in PLTR: PLTR has, for several weeks, displayed notable weakness in its sector and overall market. The weakness correlation widened on Friday to the overall market. Along with the r/w is the tight consolidation that has formed at converging key SMAs. Now, $160 acts as resistance with $150 key support.
Two potential trade opportunities exist for the upcoming week. First, weakness expands to the market, and PLTR trades below or gaps below and holds below key $150 support. If that happens, I will look to short intraday momentum target weakness toward its 100-day SMA.
Alternatively, the weakness gets paired, and we see PLTR flip to relative strength. The clearest signal of that would be a reclaim above $160 and a breakout intraday. If that were to happen, I would be long against the previous 5-minute higher low.
*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 UNH: Solid strength and action on Friday in UNH, and potentially ready for multiple days of continuation if it can hold above Friday’s high and build over VWAP. If price action confirms above Friday’s high, I’d look to get long against the LOD, with a previous. LOD trail if it follows through. The rule of thumb on managing this would be taking profits and scaling out into measured ATR upmoves, targeting up to three days of continuation for the bulk of it.
*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.
Frontside in OPEN: An absolutely relentless name, as I have mentioned over and over again in recent IA meetings, there’s no reason to be positioned short yet. The range intraday on both sides is ideal for trading. As far as I’m concerned, it’s been a fantastic trading vehicle. That will continue to be the way in which I approach it going forward.
But when will that change? After Thursday’s breakout and continuation, and the stock’s reclaim on Friday, I’d only look to aggressively position short and develop a firm intraday bias if the stock gaps and extends on Monday / Tuesday. I need to see a minimum of three days of volume and range expansion before I begin stalking for either a blow-off, failed follow-through, trend break, first red day, or ideally an intraday parabolic move and lower high. Let’s see where it opens Monday morning.
*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:
Coil in Tesla: Solid action on Friday in Tesla. Going forward, I’ll be monitoring for a hold above Friday’s high and clear r/s to the market. If that happens, I’d be long against the LOD, exiting a chunk on a move toward $360 resistance intraday. If it reclaims above $360 and holds, I’ll trail the rest against prev. LOD, and potentially add back depending on the r/s and the overall market’s positioning.
*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.
Shorting Pops in HOUR: I’ll have alerts set toward $4.5 – $5 in HOUR for Monday. If the stock pushes and fails sharply, I’ll be open to shorting lower highs for continuation and failed follow-through, targeting a move toward $3.5
*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 NBY: Nice fail and trend break on Friday. If NBY fails to follow through at $4 and confirms a lower high on the hourly, I’ll look for a short against the HOD, targeting a lower low on the hourly versus Friday’s low.
*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.