Happy New Year, Traders!
I’m excited to present several fresh concepts, strategies, and ideas today. These ideas hold substantial potential for significant directional moves this week. Rest assured, as always, I’ll provide my precise and actionable trade plans, outlining my entry and exit strategies.
After taking off last week’s last couple of days to enjoy a long weekend and have time to reflect and review my year, I am approaching this week with ideas and expectations to last week’s. I’m just looking to take what the market gives on an intraday and swing basis and monitor flow during the year’s first week.
During a week like this, where I will be more active intraday versus swing, I will set many alerts in various stocks around critical levels. Setting alerts really is a simple practice that can result in a considerable upside.
For example, Microsoft was on my list last week. While the stock did not break out, it continued to set up and consolidate around a critical breakout level. It remains on watch, with alerts set.
Here’s the plan for Microsoft:
*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 alerts trigger over Friday’s high and $377 area, I will turn my attention to Microsoft to see whether or not the stock can spend time over resistance. Also, I will pay attention to the stock’s performance relative to its sector and the overall market to gauge its strength/weakness on the day, along with its volume and RVOL.
If MSFT ticks the boxes and meets the criteria mentioned with regard to outperformance and solid RVOL, I will then put the plan in motion as laid out in last week’s watchlist.
So, I won’t just spend all day watching the stock. I will trade intraday, focusing on other stocks that are in play, and if alerts go off and the trade materializes, I will then prioritize my focus there.
MARA: Reactive and open-minded
As Bitcoin continues to trade in a range above $42,000 and below $44,000, those are the reactive points of interest for Bitcoin-related stocks like MARA.
*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.
However, after the extent of MARA’s move on Friday, my attention will shift to intraday momentum trades while Bitcoin continues to trade in a range.
*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 BTC is in a range, if MARA pushes higher, I will look for a reactive fade once it confirms. An area I will be watching closely for failed follow-through price action is $26. If the stock pushes into this level and comes into resistance intraday, I will look for a short opportunity intraday, targeting a quick move back toward $25 – $24, with a stop placed above the high of the failed move higher.
Conversely, as long as Bitcoin remains in the range if MARA opens weak / trades lower, I will have it on watch for a bounce trade. I certainly will not chase weakness short in the stock after it has already faded so much.
So, I might look for a quick wash below Friday’s low, into $22 – $20, to find bids, support, snapback, and putting in a higher low, confirming a potential trend shift and buyers stepping up.
Price action like that would get me to go long, with a stop below the higher low, for an intraday bounce trade.
I use a lot of discretion on such trades for entries and exits. For example, If the trade works, I target intraday VWAP as my first target, move to green as a target, and discretionarily take my position off if the stock breaks an intraday trend line or fails to hold over VWAP.
Swing short in MULN
I never saw the price action I wanted to, nor did the plan materialize last week in MULN, and therefore, I did not initiate the short. However, I like how the chart has developed. Last week, the stock pushed higher and squeezed some eager swing shorts, putting a lower high on a higher time frame. It’s now set up well for a fresh 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.
Something to remember: Sure, we all know the dilution track record, but the float is small post-reverse split, and the liquidity is drying up. Therefore, it’s essential to exercise caution when trading this. Don’t oversize, and don’t be stubborn.
I am using $18 / Friday’s high as my guide and stop zone/line in the sand. I will look to short pops higher in the stock, ideally on a push to $15 – $16, adjusting my size on entries and scaling my position relative to my initial stop area. My first target to take some risk-off will be a move toward $12. After that, I am targeting a move back between $9 – $10 to take most of my position off. Once entered, I plan on holding this for a week or slightly longer, as long as price action does not shift and I don’t get stopped out or the stock bases and spends time above $15 – $16.
Backburner focuses and alerts set in the following names: AFRM, NVDA, CING.