Traders, I look forward to sharing my top setups for the upcoming week, including my entry and exit targets for potential trades in Tesla, Bitcoin, and a few small caps.
Like I have done for a couple of months now, I’ll continue with previous adjustments that have been outlined. In my opinion, it remains an intraday environment, where apart from some isolated swing opportunities in China, commodities, and emerging markets, the opportunity has been on an intraday basis.
While the market remains in a range near lows, below declining short-term moving averages and its 200-day, I will continue with an intraday focus. Coming into the week, I’m open-minded and willing to go long or short, depending on how we react around significant support or resistance. For example, I’m watching $570 for SPY as a potential inflection area, and a hold below last week’s low as a bearish inflection point.
Now, depending on individual relative strength, along with the overall market’s positioning and internals, here are some stocks I will watch for either long or short intraday opportunities.
Continuation Lower in Bitcoin (IBIT)
Bitcoin is still in a downtrend with consecutive lower lows and lower highs. That might change if Bitcoin reclaims and bases itself above its 20-day and consolidates higher. However, for the time being, I am more interested in momentum short 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.
Of course, the idea also depends on overall market weakness and possible continuation lower. So, If Bitcoin breaks this bearish consolidation, around the $82k level, I’d be interested in intraday momentum shorts in IBIT.
As it is intraday, I’d be using VWAP as a guide and lower highs on the 5-minute timeframe. For entries, I would use intraday aligned with higher timeframe consolidation breakdown levels, intraday breakdowns, or lower highs / VWAP stuffs. For exits, I would use a combination of ATR-measured moves, trend breaks, or extensions from VWAP.
Continuation Higher in Tesla (TSLA)
Nice opportunity on Friday with relative strength in Tesla, along with Palantir, ideas from last week’s list. Again, not focusing on higher timeframe swings while Tesla remains below its 200-day. However, given the relative strength on Friday and the potential rubber-band effect off its lows, I’d be inclined to look for a continuation higher if the market firms. I’m not saying it will, but in the event the market firms up, Tesla, after Friday’s strength, would be a go-to for follow-through.
*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.
If Tesla expresses relative strength and the market has favorable internals and positioning intraday, I’d look for higher lows above VWAP for entry or consolidation breakouts intraday with a stop below the 5-min higher low / breakout point. As I discussed in my recent IA meeting, I’m quick to secure gains and trail my stop for trades like this, so I’ll follow the same approach outlined in detail in that meeting.
Pops to Short in Quantum
Regarding the quantum theme, my go-to name is QBTS. As outlined in the previous watchlist, Thursday was an excellent Sell the News opportunity. Now, going forward, I am looking for a pushback into prior areas of resistance and failure to re-short.
*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.
So, while several scenarios exist, I will outline just one for a potential intraday short opportunity. Areas I am interested in are $9 and $9.5. If QBTS can push back toward Friday’s high, near $9, and fail while displaying some relative weakness to the quantum basket, I’d look to position short versus the HOD. I’d be targeting a move toward Friday’s low. Another central area of potential resistance is $9.5 – where the stock broke down from on Thursday and the previous major area of support, which I’d like to see become resistance in the coming days.
Small-Caps on Watch:
RGC: Low float, small-cap, and not a name to trade or watch unless it’s an area of strength for you. I think its surge is more about the mechanics versus the fundamentals. Once stubborn shorts have truly exited and provided the liquidity for a locked float to be unwinded/actual selling enters the fray for the first time, a short opportunity could present itself. So, I will keep it on side watch for that scenario and look for the backside to confirm before paying closer attention this week.
*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.
RNAZ: Nice failure on Friday. Straightforward plan here for an intraday trade; I am looking for pops to short back toward multi-day VWAP and $1.4 failure zone from Friday.
*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.
PSTV: Fantastic trader on Thursday, followed by a potential liquidity trap forming on Friday. I’m hoping this has a secondary squeeze and push higher in the coming days, which would set up a dead-cat bounce short into the $1.3 – $1.6 zone, ideally.
*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.