Happy Sunday, Traders!
I’m thrilled to present several fresh concepts, strategies, and ideas today. These ideas hold substantial potential for significant directional moves this week. Rest assured, as always, I’ll provide my precise and actionable trade plans, outlining my entry and exit strategies.
Just before I do so, a reminder that this week is a shortened week, and the market will be closed tomorrow, Monday, 25. As it is a shortened week, I will be shifting my mindset and adjusting my expectations!
During shortened weeks, especially into year-end, volume and liquidity are lower. Therefore, I shift from taking 2 – 4 day swing trades to intraday swing trades. A faster, more precise approach. So, I will focus more on day 2 and 3 plays, with exact intraday levels to react versus higher timeframe ideas.
With that being said, there is one higher timeframe idea that looks too good not to prepare for.
Microsoft (NASDAQ: MSFT)
*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.
I like the steady six-day grind back up after the stock attempted to break down. Going forward, I am now looking for a breakout above $376 with authority (volume and time spent) for an entry long.
If that occurs, I will look to get long with a stop set at the low of day. My first target is $380, where I plan to cover most of my position and trail my stop using higher lows on the hourly timer frame.
I will set alerts around the breakout level in MSFT, and keep this on the radar in the coming days/weeks if it continues to set up and consolidate further. Once entered, I plan on staying in the position for up to three days if it sets up this week.
Affirm Holdings (NASDAQ: AFRM)
*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.
Affirm is a highly reactive idea, and I am only looking to get short this if it breaks the uptrend and confirms a lower high. If it cracks the uptrend, I will get short versus the high of the day and look for an intraday short-swing opportunity, targeting a move toward $46. At $46, I would cover half of my position and trail the rest using lower highs on the 15-minute chart or the intraday VWAP.
If the stock were to close weak, near the day’s low, I might hold it overnight for continuation, but only after I have covered over half, locked in profit, and taken risk off the table.
Recent reverse split stocks with a history of dilution: MULN, GMBL
Both of these stocks offered fantastic intraday short opportunities on Friday for me. Now, I am looking to use day 1 and 2 levels for a potential re-short if they can pop back into potential levels of supply and good R: R spots.
*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.
For MULN, I would love a pushback toward $10.50 – $11 and a failed follow-through to get short versus the high of the day. If that were to confirm, I would look to cover half of my position near Friday’s low and low $9s and hold the rest for a swing trade with a $10 stop and then trail accordingly using the hourly timeframe.
*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.
For GMBL, the plan is similar. There was some supply near $7.50 and $8, so I would love to see a quick push and fail into those levels to get short versus the high of the day once confirmed. Like MULN, I would cover half of my position, take risk off in the mid to low $6s, and hold the rest for a further day or two of continuation.
