Trader, It is very similar action to the previous week. I might sound like a broken record, but it remains an opportunistic environment for move2move / momentum trading, specifically with day 1 in-play names and breaking news / headline-driven opportunities.
So, as outlined in previous weeks, that is predominantly where my focus remains until the market shifts gears.
So, while my focus is primarily on fresh names in play on an intraday basis, here are a few ideas that I am coming into the week with:
(NYSE: BBAI) Fantastic mover last week, with two notable long opportunities that several on the desk capitalized on: the breakout on Wednesday and follow-through on Friday. Going forward, however, and considering both the mechanics of how the stock trades and what drives it, along with its fundamentals relating to dilution, I’m more focused on a potential short setup.
*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.
As you’ll know, based on the criteria shared before, this doesn’t yet qualify for an A+ reversion opportunity. However, if, and it’s a big if, at this stage, the stock can extend over $10 on continued volume and range expansion, it would enter potential A+ reversion opp. I am excited about that, although it remains unlikely at this stage. Alternatively, for a lesser opportunity, more along the lines of a B+ trade, I’ll have it on my radar for a FRD setup or failed follow-through on a gap-up on Monday.
(NASDAQ: AFRM) Excellent results reported last week, and follow-through on the numbers taking the stock to new 52-week highs and a breakout across multiple higher timeframes. Reasonably straightforward setup here in AFRM going forward that would warrant action.
*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’d like to see this develop into a potential earnings continuation swing. For that, I would need to see relative strength continue, along with previous resistance turn into support near $73.50s, and the multi-day VWAP anchored from earnings hold up. If that all conforms, I will look to get long on a higher low OR pullback into multi-day VWAP and support OR a 2 or 3-day breakout after an inside day or two, for example, similar to PLTR from last week. Like PLTR, I’d be targeting ATR extensions above vwap to take profits and trail my stop using higher lows on the 5-minute timeframe.
(NASDAQ: MGOL) Dilutive small-cap stock with a history of pump and dump action. Fantastic reclaim on Friday at the end of the day and squeeze out into the close and AHs. Those were simply stubborn shorts that had sized up aggressively for an all-day fade and were getting squeezed out. Now, unfortunately, the stock gave that squeeze back into the 8 pm close, but I’m hoping for a gap-up on Monday morning. A gap up into $0.50 – $0.60 + would set up the potential for an A opportunity in my books. While I might scale on the short side, I’ll be looking for a clear rejection above or below $0.55 and lower high to short aggressively against, with a HOD stop, willing to swing short for a move back toward $0.20. Again, ideally, this continues higher. The higher, the better for the eventual fade back to reality.
*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.
And lastly, I’ll be keeping a close eye on nuclear names, specifically OKLO.
(NASDAQ: OKLO) Nothing I am looking at acting on now, neither long nor short. Too extended for me to initiate any new longs and not yet extended enough to go short. However, given the elevated short interest, volume, and range expansion on Friday, It’s now on side watch for a potential mean reversion opportunity this week. Why? I’ve noticed the volume and range have begun to expand, extensions for several key SMAs are now checked, and all I need now is for the gap criteria to be met, along with continued vol and range expansion. If that happens, it could be an A+ reversion opportunity.
*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, as you can tell, it’s a different tape and environment right now. A lot of potential scenarios and less on watch for the upcoming week. Again, for me, consistency and success is coming from momentum trading. Specifically, I am in the right stocks, identifying in-play names on an intraday level, with setups and opportunities that align with my playbooks.