Traders, Happy New Year!
I look forward to sharing my top ideas with you all for the upcoming week, including my entry and exit targets.
Apart from a select number of small-cap ideas, the watchlist will be heavily skewed toward long intraday and swing ideas. Given the reclaim on Friday in the overall market, this potentially signals a failed move lower and a possible fast move higher.
So, starting off with large-cap long ideas.
Large-Caps on Watch:
NVIDIA (NASDAQ: NVDA): On a higher timeframe, the stock continues to be a leader and displays relative strength to its sector. After retracing over 10% from its 52-week high, it recovered with a higher-low near converging SMAs, with Friday’s breakout providing the best entry. Now, however, my focus is turning to a higher-low for a long-swing entry. Ideally, the stock pulls back near its 2-day VWAP at $143.5 – $144 and supports, providing a long entry with a stop near the LOD. Reminder: NVDA is presenting at CES on Monday.
*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.
Amazon (NASDAQ: AMZN): It’s not always the easiest of stocks to trade, but from a technical perspective, it’s shaping up well. After turning prior resistance near $220 into support, it’s now formed a bullish formation with Friday’s high and its 20-day acting as resistance and a potential breakout level. If the stock can break above that zone and hold convincingly, I’ll look to enter long with a stop near the LOD initially.
*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.
Semiconductor ETF (NASDAQ: SMH): The sector ETF has spent almost 6 months consolidating near converging moving averages. With several of its top holdings perking higher on Friday, along with the ETF, of course, it’s beginning to show early signs of a potential breakout. This would be a more extended hold period, potentially up to two weeks, and targeting several ATRs of upside. First, however, I’d want to see rotation back into leading sector names continue with relative strength. I’d also need to see SMH hold firm above $254 to initiate a starter position versus $250. I would look to add over $255 – $256, initially targeting a 1 ATR move toward $260 to take risk off and trail my stop. Over $260, i’d trail my stop targeting a move closer to $270.
*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.
Additional Large-Caps on Watch:
Reddit (NYSE: RDDT): Several weeks consolidating near highs. Range expansion on Friday and closed near $180 breakout level. On watch for continuation.
*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.
Vertiv (NYSE: VRT): Higher-low confirmation on Friday with the stock closing above its 50 and 20-day. On watch for a VWAP pullback and higher low for potential continuation entry.
*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.
Alphabet (NASDAQ: GOOGL): Consolidating near its converging 5-day and 20-day SMA.
*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.
Rotation back into Nuclear Stocks: VST, OKLO, SMR
Small-Caps on Watch:
(NASDAQ: NITO): After a 2-day run in the stock, the shift toward the backside appears to be confirmed after Friday’s squeeze out and exhaust near $3. Going forward, I’ll look for overhead resistance to confirm the shift in momentum. If the stock can push toward $2.5 – high $2s and fail, and hold heavy sub intraday VWAP, I’ll look to be short versus the HOD. Hands-off if this holds above $2s on light volume in case of a liquidity trap.
*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: KITT): Incredible mover on Friday with multiple long opportunities. Huge squeeze out in the AHs, which likely exhausted most stubborn shorts, but with that being said, it all depends on where this opens on Monday. At these prices, however, I’m no longer long biased. I’ll be targeting any failed follow-through to the upside/stuff moves/blow-off tops and lower highs for move2move shorts.
*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: FCUV): Ideally, this opens near where it closed Friday AHs and provides a failed-follow-through setup for a 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.
(NASDAQ: EDBL) and (NASDAQ: CGBS): both on watch for a break above key daily levels for a potential liquidity trap squeeze higher.
*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.