Traders,
Another eventful week that has continued to confirm the changes and adjustments discussed and made over the last several weeks. This week, however, there will be a change in the setups I am looking for, so stick around as I share my top ideas for the week, along with my exact entry and exit targets for ideas that might make substantial moves.
One of the big talking points from last week is the selloff on Friday. Specifically, the selloff experienced across several semiconductor names. That’s where the opportunity looks greatest for me for the upcoming week. So, let’s jump straight into it.
Capitulation Bounce in NVDA
NVDA closed the day down 10% on Friday, which I believe is its worst performance since the Covid crash in March 2020. The move on Friday also wiped out a couple hundred billion in market cap for Nvidia…just insane.
While Friday’s move presented all sorts of opportunities, whether with options, swing trading, or momentum scalping, it was truly a fantastic mover. Going forward, though, I am looking for further panic and, ideally, a bounce 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.
Here’s my plan:
NVDA’s previous resistance, which turned to support from earnings in February, is around the $750 mark. Give or take some range, I would be looking for a washout near this area on Monday / the upcoming week and an immediate snapback and higher low, confirming some demand and a level to risk against. With that confirmation, depending on the setup, I would be long vs. either the LOD or higher low and target a move toward the 2-day VWAP for a bounce 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.
Similarly, I am watching SOXL and SMH, sector ETFs, for a swing long. For example, in SOXL, down almost 50% from its 52-week high, I am looking for a move toward its 200-day SMA and intraday vwap reclaim, higher lows, to confirm a reversal, to enter long. A strong/green close would get me to add to the position, risking the day’s low, looking for a 2 – 3 day bounce opportunity in the sector. For the swing long in SOXL, I am looking to trail my stop using higher lows on the 15-minute timeframe, scaling out slowly as it makes new significant higher highs over multiple days.
Additional Ideas / Alerts Set in the Following:
DJT: Solid multi-day bounce last week. I am looking for a re-entry for a swing short here. Ideally, this goes higher, $38 – $40, before breaking the mini uptrend. However, if $35 – $36 fails this week on a push and we get a lower high / uptrend break, I will be short for a swing trade, trailing the position by the prior day’s high, looking for a fade back to the lows, while locking in along the way.
*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.
AGBA: No bias, but based on immense volume and the setup, this might result in a squeeze-out before fading. So I am looking for dips to continue to get saved and bought out and a potential breakout over $1.50s and Friday’s high for a short-term squeeze. A reactive idea and alerts are set to monitor price action around that zone for a squeeze or potentially a stuff trade, similar to last week’s open-minded plan in TPET.
*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.