Happy Monday, Traders!
I’m going to present several new ideas, all of which I believe hold the potential to make significant directional moves. As always, I will share my thought process and actionable trade plans with you.
However, before I do that, I want to discuss something important and relevant after the week we just had.
Last week, some ideas from the watchlist saw significant success. Nvidia’s breakout was remarkable, making it a standout opportunity this year. Microsoft’s breakout from the previous week’s watchlist also unfolded nearly perfectly. You can revisit and analyze these ideas in the two most recent watchlists.
After a fruitful week, caution is my priority. While getting aggressive after recent successes is tempting, I’ve learned the importance of exercising caution. Rigorous risk management and precise entries and exits take precedence. Instead of swinging for the fences because one might feel invincible, I’ll be ultra-selective, trading only when confirmation is present. My goal is not to beat the market or to teach it a lesson but to respect it and react to price action according to my plans.
Now, anything can happen in the market. That’s why it’s so important that I remain in my seat, ready to react. However, for this upcoming week, I’m not in love with anything as I was last week with NVDA, for example. So, my foot isn’t on the gas coming out of the gates, but I will be ready and present in case that changes.
So, with that in mind, here’s my game plan for the upcoming week.
Relief Rally / Bounce Trade in MARA (Bitcoin-related stocks)
The Bitcoin ETF sell the news setup last week, and the NVDA breakout were the two top opportunities of the year so far, in my opinion. Actually, the two top setups I have seen in a while. Of course, the Bitcoin-related opportunity was more of an intraday trade, but I wanted to share my thoughts there.
*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.
After the runup in anticipation of the ETF, stocks like MARA, RIOT, MSTR, and many others have now experienced two intense days of selling, along with Bitcoin. I am not predicting what will happen here, but I am preparing for a potential scenario.
If MARA (my trading vehicle for the idea) finds support on a flush lower, reclaims VWAP, or makes a higher low on an uptick in Bitcoin, I will look for a relief rally.
Here’s my specific plan: Keeping a close eye on Bitcoin, IF MARA washes out lower and sharply snapback – reclaims intraday vwap or holds and makes higher lows, I will look to get long with a stop placed at the low of the day or below the higher low, depending on the confirmation and setup.
I’m not looking for a multi-day bounce, just a one-day swing relief bounce. I will target a 1 ATR bounce for this position as an optimal target. However, as the momentum is currently to the downside, I will also be trailing my stop as the position works, using previous higher lows on the 15-minute chart.
I’ll be following the bitcoin-related stocks mostly this week. However, here are some additional stocks for which I have alerts and the setups I am watching.
CRGE Lower high for one day swing 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.
Small-cap stock that traded abnormal volume on Friday. It faded slowly into the close and potentially has a significant overhead + bagholders stuck from $0.26 – $0.34. As such, I have alerts set in the name to monitor pops around $0.28 – $0.30 to look for price confirmation. If the price confirms that supply is dominant, I will look to get short with a tight stop (HOD stop) and target a move back toward the AHs low from Friday.
PYPL Inverted head and shoulders pattern:
*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.
Slowly monitoring PYPL as it consolidates near its first potential breakout level of $62 and then $64. No plan. I am watching this to see how it develops over the coming days.
AFRM Consolidation:
*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.
Short-interest squeezers are getting crushed so far this year. CVNA and UPST seeing further downside. AFRM consolidating now and below Friday’s low could potentially spark a move toward $38. So, I have alerts set if the stock breaks below Friday’s low. One way I might enter, if it confirms, is by shorting a lower high, with a stop placed above that lower high, and targeting a move toward $38 while trailing my stop using the 15-minute chart and recent lower highs.