Traders,
Another eventful week! As always, I look forward to sharing my top ideas for the upcoming week with you all, including entry and exit targets.
As I mentioned in my previous watchlists and studied and reviewed in detail in my Inside Access meetings, it continues to be an opportunistic tape for momentum, move-to-move trading.
As discussed in my most recent IA meeting, once we see the market shape up in a specific fashion, that focus might shift back to swing trading.
So, let’s get right into this week’s top focuses.
(NASDAQ: TCTM) Alright, starting off this week with a small cap. TCTM was Friday’s small-cap flavor of the day. The stock punished stubborn shorts early on, and provided incredible momentum longs above vwap, until the range and vol expanded, blowing out shorts and offering an A+ intraday parabolic short and reversion back to VWAP – what I was looking for.
Given the float, SSR, and the unbelievable volume traded on Friday, I don’t think it’s done. I’m not saying it can make new highs. However, I think at the very least, considering T+1 and potential failure to deliver, it could see a pushback toward $1 early next 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.
With that possibility in mind, I have two trade potentials. First, I am looking to short the stock if it swipes early on Monday toward .9 – $1+ and stuffs / fails to follow through. I’d short versus the HOD and be patient with a stop trailed targeting a cover toward the close.
Alternatively, suppose the stock has a push early on Monday and consolidates above 0.9, churns, and traps shorts. In that case, I’d look for a consolidation breakout long, targeting a move closer to Friday’s high. This would just be an intraday momentum long.
(NASDAQ: RKLB) One of the best swing longs from last year, having discussed the breakout opportunity at $8 with Inside Access. Incredible follow-through and growth for the company. However, with the stock having almost an inside week and holding above its 20-day and 5-day, I’m focused on short-term momentum. I’m inclined for a breakout long intraday, given where the stock is. However, if RKLB takes out last week’s low and breaks its 20-day, I’ll be looking for intraday momentum shorts, potentially targeting its rising 50-day. If the stock takes out its high from last week, i’d look to get long and target a move toward overhead resistance near $32.
*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.
(NASDAQ: RDW) Another space name. Given it’s close on Friday, I’m inclined to prepare for a potential failed follow-through setup. If we see some air come out of space names, for example, if RKLB fails below key levels, I will look to get short RDW on a lower high, given Friday’s failed move higher, for a potential quick move lower. Ideal entry would be a stuff toward it’s 2-day or multi-day VWAP from Friday, for a move back toward support near $22. Again, just a momentum IF/THEN scenario.
*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.
Some Additional Backburner Ideas and Alerts
SPY: Weak close on Friday in the AHs. I don’t want to see us fail to hold the 50-day; if that were to happen, last week’s low would come into question. Ideally, we get a higher low vs. last week’s low and reclaim $600. Similar positioning in QQQs. Momentum could easily spill out if we fail to hold the 50- and 20-day.
*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.
TSLA: Big levels are forming on the daily now, with converging 5, 20, and 50-day SMAs in the middle of the range. Next week should be telling for a reactive and directional move either above or below key resistance or support. Monitoring relative strength/weakness, for a potential directional momentum trade above or below last week’s high/low.
*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.
NVDA: It has a significant range and major levels from last week, similar to Tesla. Early in the week, I will identify relative strength/weakness relative to its sector and market positioning for reactive trades into support. I’m open to going long if support holds near $118 and open to going short if we hold below key support and lead in relative weakness.
*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.