Merchants, I look ahead to outlining my prime concepts for the approaching week with all of you.
In the meanwhile, I’m staying closely targeted on intraday momentum buying and selling over swing buying and selling, the place I discovered constant success final month. Pockets of swing alternatives nonetheless exist, just like the Bitcoin (MSTR, IBIT) brief from the final watchlist, and mixed with intraday alternatives, they made for a extremely sturdy week. I’ll stick to this strategy till the market shifts. It’s undoubtedly a merchants’ market proper now.
So, coming into the week, listed here are my prime focuses:
Greater Lows / Reduction Bounce in Tesla: Incredible motion on Friday in Tesla, discovering assist and seeing patrons step in close to its 200-day. Total, I’m staying open-minded on this tape and never seeking to chase excessive weak spot or power. As an alternative, suppose Tesla can start to stabilize over its 2-day VWAP, or affirm the next low on Monday. In that case, I’d search for an intraday lengthy alternative for a aid rally over $300 and its declining 5-day. If TSLA bases over $300, I’d proceed to search for lengthy intraday alternatives, trailing versus VWAP or 5-minute greater lows. The identical ideas apply to PLTR.
*Please observe that the costs and different statistics on this web page are hypothetical, and don’t replicate the influence, if any, of sure market elements akin to liquidity, slippage and commissions.
Bottom in TRNR: We’ve been in an atmosphere lately the place shorts are starting to get barely complacent and cussed. TRNR’s grind greater supplies proof of that. To have an interest for a brief I’d wish to see this expertise failed comply with via over Friday’s excessive. Ideally, I’d wish to see an exhaust over $3 and work out any cussed shorts which can be left holding this. After the exhaust, I’d wish to see failed follow-through and a few decrease highs to verify shifting momentum to get brief versus the 5-minute decrease excessive and intraday resistance, for a fade again towards $2.
*Please observe that the costs and different statistics on this web page are hypothetical, and don’t replicate the influence, if any, of sure market elements akin to liquidity, slippage and commissions.
Reactive Trades in Bitcoin: Not like final week’s swing brief in Bitcoin (IBIT, MSTR), I’m now targeted on reactive trades round key ranges from final week. If Bitcoin pushes again towards $90k and faces promoting stress, and/or we start to see sellers step again into SPY / QQQs, I’d search for intraday brief alternatives. The automobiles of selection could be IBIT and MSTR, ideally towards $280, experiencing failed follow-through. Equally, any flushes early on in Bitcoin and IBIT towards $46 – $47 and better lows, I’d search for potential lengthy scalps.
*Please observe that the costs and different statistics on this web page are hypothetical, and don’t replicate the influence, if any, of sure market elements akin to liquidity, slippage and commissions.
Relative Energy in Shopper Staples and Financials: Unsurprisingly, staples had notable relative power lately. XLP itself is shaping up for potential continuation greater over Friday and final week’s excessive. That’s an space I’ll give attention to subsequent week. Inside the XLP, a lot of its prime holdings present attention-grabbing setups and can present perception into whether or not or not continuation will happen for the general sector.
*Please observe that the costs and different statistics on this web page are hypothetical, and don’t replicate the influence, if any, of sure market elements akin to liquidity, slippage and commissions.
For instance, COST, its prime holding reporting earnings on Thursday, is consolidating in a bullish technical sample close to highs. KO, one other top-holding XLP identify, is consolidating simply 3% off its 52-week highs, presenting an analogous probably skewed danger: reward consolidation breakout lengthy alternative. I’ll be conserving a detailed eye on the general sector and its prime holdings subsequent week for a possible lengthy alternative as soon as I collect for affirmation.
*Please observe that the costs and different statistics on this web page are hypothetical, and don’t replicate the influence, if any, of sure market elements akin to liquidity, slippage and commissions.
Equally, after Friday’s sturdy shut, financials, or the XLF ETF, is now positioned properly for potential follow-through over Friday’s excessive. I’d wish to see the next low adopted by an intraday breakout above Friday’s excessive for a protracted alternative. Such a transfer would curiosity me for a protracted in opposition to the upper low, for an intraday lengthy concentrating on at the least an ATR to the upside.
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