Trader’s
I hope you’ve all had a great weekend. A quick note to start this off: As I went over at great length in my recent Inside Access meeting, there’s a time to swing trade, there’s time to swing the bat hard, and then there’s a time to reel it in, focus more on the intraday move-to-move action, and remain unbiased, open-minded, and focused on spotting solid intraday patterns and taking advantage of pockets of liquidity. I highlighted several of those intraday trade types in Thursday’s meeting. If you missed it, go back and watch it.
Now, until there is capitulation, or a game-changing news event / obvious reclaim and base above key SMAs in the market, that will need to remain the focus.
So with those thoughts in mind, together with last week’s thoughts, here are some technical setups that stand out to me right now for the week ahead:
2-Way Setup in RKLB: This is a good example of a name that could provide a solid intraday momentum opp, in my opinion. It’s beaten down immensely from its 52-week highs and, so far, hasn’t been able to bounce. It spent close to a week consolidating at the lows in a tight range on declining volume, creating a good risk-reward setup for an intraday breakdown.
So, if RKLB breaks below 50, stays weak, and forms an intraday pattern to enter momentum, I’d take a short trade. Alternatively, given the range and Friday’s high now acting as resistance and a potential springboard up to the 10-day, I’ll look for a long scalp opp if we show some relative strength.
*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.
Day 2 + in BE: Very clean levels from Day 1 to go off of now for day 2 +. Specifically, 190 and Friday’s low of 189 act as potential support. Should BE break below and remain weak, along with rel. weakness intraday – that’s a day 2 short trade I would be interested in. Alternatively, if we have notable strength across the board and BE trades above VWAP from Friday, which was also intraday resistance near 195, there could be a long scalp opp there.
*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.
QQQ $700 in Focus: What about the broader tech market? Friday’s low, along with the higher-timeframe support level of $700, is major support and a significant line in the sand for bulls. If QQQ breaks below 700 and stays weak, I’d focus on intraday momentum shorts in the QQQs, along with high-beta correlated names showing the most weakness. Alternatively, should we undercut this level and reclaim it, I’d look for those mega-cap tech names displaying the most rel. strength intraday and focus on long scalps.
*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.
MU: Overall, and this applies to the broader tech space, I’d love to see a multi-day bounce back into the flattening/declining short- to mid-term SMAs, such as the 50-day, to set up a potential swing short. But until something like that happens across the board, I’d stay focused on intraday momentum. On MU, if weakness continues next week, I’d look for a weak hold below Friday’s low, which could open the door to a larger intraday move down out of its multi-week range. Notably, after showing relative strength to its peers, I’d love to see that flip for added confirmation if it sets up intraday on the short side. Alternatively, it could be a great candidate for a long scalp given last week’s relative strength during key momentum, and if the QQQ begins to stage a bounce.
*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.
SPCX: Great range each day in SPCX, fading an outlier swift move into resistance or support. Following last week, a solid range has now developed, with 150 / the 50-day acting as resistance near 150, and Friday’s low / 143 acting as support. I’ll be keeping tabs on the name to see if we break above / below either key level and hold firmly in that direction above or below the intraday VWAP, for a potential intraday momentum 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.
P.S. – Notable mega-cap earnings for the upcoming week include MSFT, GOOGL, and AMZN.
Trade well, see you next week!