Merchants,
I look ahead to sharing my ideas with you this week. As I’m travelling this weekend, there can be a written watchlist and no video.
Following on from final week’s ideas, the market continues to grind greater, shrugging off unfavourable headlines, with leaders persevering with to steer. Like final week, while I’m most excited about lengthy swings in leaders, I’m definitely not seeking to chase after a stretched transfer out there.
As a substitute, I’m monitoring worth motion in SPY towards the 200-day, whether or not we reclaim and maintain, pullback and base towards the 50-day, and make sure the next low, or fail the 200-day and probably verify a brand new swing pivot excessive. This week can be telling. I’d like to see a multi-day pullback and stabilization above the 50d for higher risk-reward throughout the board.
So, with that being stated, and key emphasis on persistence and inventory choice for the upcoming week, together with figuring out continued relative energy in leaders, listed here are my high focuses going into it:
Consolidation Breakout in TSLA
A breakout in Tesla is my favourite setup for the upcoming week, relying on the general market’s path and relative energy in Tesla.
Particularly, I like how the $275 space of resistance has develop into assist, with a exact inflection and breakout stage close to final week’s excessive, round $295, performing as the important thing stage. If the market continues to carry agency, I’d look to commerce this like I did final week: dip buys inside its vary versus assist, promoting round a core into resistance, and including on a breakout above the consolidation highs.
Alternatively, suppose we maintain agency intraday close to the breakout stage. In that case, I’ll look to provoke a protracted via the breakout stage throughout a number of timeframes, with a cease beneath the consolidation breakout intraday, for a multi-day swing. I’d be focusing on as much as a full ATR as a goal.
*Please observe that the costs and different statistics on this web page are hypothetical, and don’t mirror the impression, if any, of sure market elements similar to liquidity, slippage and commissions.
Growing Consolidation Breakout in HOOD
Earnings are out of the way in which in HOOD, and a gradual reclaim and consolidation are creating above all of its key MAs. There’s nothing for me to do straight away, and I doubt I’ll take motion on Monday or Tuesday.
As a substitute, I might like to see a pullback or multi-day maintain out there, for HOOD to outperform throughout a market pullback, and for its vary to tighten. That will point out relative energy, institutional shopping for, and an absence of promoting. If that occurs and the vary tightens, I’d look to enter a place lengthy on a breakout above $50 if the market companies up after a relaxation interval. This is able to be a swing commerce, focusing on as much as a number of ATRs, taking threat off on extensions from intraday VWAP, and buying and selling round a core. It relies on how it’s arrange intraday, however I’ll probably be trailing the place within the 5-minute timeframe towards greater lows or VWAP.
*Please observe that the costs and different statistics on this web page are hypothetical, and don’t mirror the impression, if any, of sure market elements similar to liquidity, slippage and commissions.
Further Massive Caps on Watch For Continuation / Pullback Entries are AI, CRWD, SPOT, UBER, TMDX, RKLB, and MELI.
Small-Caps on Watch:
KIDZ: Good failed follow-through close to $9 on Friday. Going ahead, I’ll search for pops into/close to $8 for related motion for a brief. Ideally, a push on Monday and failure to carry above $8s / 2-day VWAP for a brief towards the HOD, with covers into $7 and $6. If quantity drastically dries up in it, it’s an keep away from.
*Please observe that the costs and different statistics on this web page are hypothetical, and don’t mirror the impression, if any, of sure market elements similar to liquidity, slippage and commissions.
FRGT: Glorious motion on Friday, much like the way it has traded intraday through the years after related pre-market strikes and quantity. Uncertain, however I might love a push again towards its 2-day VWAP on Monday or $2.2 – 2.5 for a brief towards the HOD as soon as it turns.
*Please observe that the costs and different statistics on this web page are hypothetical, and don’t mirror the impression, if any, of sure market elements similar to liquidity, slippage and commissions.
PRLZ: Good blowout Friday AHs. Not excited about chasing weak spot within the title after Friday’s motion. As a substitute, I’d be excited about failed follow-through between $1.2 – $1.5 for a brief towards the highs, protecting extensions decrease, and trailing towards 5-minute decrease highs.
*Please observe that the costs and different statistics on this web page are hypothetical, and don’t mirror the impression, if any, of sure market elements similar to liquidity, slippage and commissions.
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