Traders,
It’s been an eventful weekend, to say the least, with the $TRUMP and now $MELANIA meme coins grabbing all the headlines and attention as the inauguration approaches. Regardless of whether this is good or bad, I think it provides an insight into what the next four years could look like. For us traders, it likely spells increased volatility and, with it, opportunity.
For this week, my focus will remain primarily on move2move trading, as discussed in detail in InsideAccess recently. With that, my attention will flow to day 1 in-play names. But coming into the week, here are my top ideas with pre-determined plans and scenarios.
(NASDAQ: DJT) While it appears unlikely, given what has transpired over the weekend so far with the meme coins and the insane market valuation of the trump coin, it’s worth being prepared for a potential outlier scenario. So what is that scenario? I hope the increased FOMO and overall attention results in a ramp higher in DJT on Tuesday toward significant resistance and supply between $45 – $50 from pre and post-election. If that happens on a gap-up or morning chase, I’d be on high alert for supply to hit the tape and for an intraday fade versus the HOD. If a downtrend holds firm and the stock closes near the day’s low, I’d take a piece as a swing. I’m treating this and categorizing it as a potential sell-the-news opportunity. Importantly, to act, I’d need to see the immense supply that now exists from October and November overwhelm any buying within that targeted zone. On the off chance that this gaps up and holds above VWAP, I would not short it.
*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.
(OTC: FNMA): I missed the bounce entry on Friday, which I was looking to position both for an intraday and long-term play. I certainly will not be looking to chase highs this week. Instead, as this story develops and the newfound uptrend gains momentum and development, I will have alerts for higher lows within this forming consolidation. If the stock can give me an entry within this forming range, near $6, I’d look to get long versus $5, as long as the narrative remains intact. Ideally, a lengthier consolidation now forms, allowing the price to digest and a position to be built on dips versus $5.
*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.
(NYSE: RDDT) Straight forward technical setup here. As the stock continues to consolidate, with a contracting range and now converging short-term SMAs, so too does its volume, potentially leading to a breakout over $180. So, if the stock can push over $180 along with elevated RVOL / a burst of volume, I’d look to enter long versus the LOD. RDDT’s a higher-ATR name, so keeping size and risk in check will be important so I don’t get shaken out. I am targeting high $180s to take half off and trail the rest versus the day’s low, similar to the SMTC breakout idea from last 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.
Crypto-Related Stocks
(NASDAQ: HOOD) As I’m writing this, Bitcoin is making new all-time highs, and we are experiencing meme-coin craziness. So, it’s worth keeping a close eye on all crypto-related stocks tomorrow. HOOD has shown impressive strength and has been a leader YTD so far. I like this on dips closer to previous resistance $44 – $45. However, if this gap is over $50+ and fails to follow through or exhausts, it will be on watch for short intraday opportunities.
*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: MSTR) Again, with the level of speculation and fomo being off the charts right now, and Bitcoin at highs, I’d imagine we could see a major gap up in MSTR. I won’t chase that long. Instead, I’d look left at multiple failure zones and overhead between $425 – $445 for a potential intraday short. The key word here is intraday. I’m not looking to position short for a significant move. It’s strictly move2move trading.
*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.
Other names on watch apart of crypto/bitcoin theme: BTCT, COIN, RIOT.
There should be no shortage of gappers and in-play names tomorrow and this week, from small to large caps, so it will be essential to narrow down the focus and double down on stock selection.
While a lot will be moving, please remember: just because something is moving doesn’t necessarily mean there is an edge there. The most important are stock selection, risk management, and sticking to your process. And if volatility increases, that automatically sizes you up, so double down on risk management.
And lastly, as I spoke about at length in my latest IA meeting, I’ll be paying close attention to key resistance and inflection levels in SPY and QQQs, along with notable setups in market-leading names like GOOGL, AMZN, and META.