Happy Sunday, Traders!
I’m excited to present three fresh ideas today, and two specific types of swing trading strategies. 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.
But right before I do that, a quick side note:
You’ll notice that my ideas shared today cover both the long and short side and a large-cap and small-cap / low float. This isn’t a fluke. It is by design. When I started, I focused on where I first had an edge – shorting small caps intraday. As I grew more consistent and profitable, I leveraged those skills to develop and expand my playbook and sources of edge.
Today that includes intraday trading, both long and short, along with swing trading. But remember, it all starts with mastering one setup and strategy, with the correct foundation, and then slowly building on top of that to create a sustainable career versus being a one-trick pony.
Now to the ideas!
The first idea and strategy is a Consolidation Breakout in Nvidia (NVDA)
If you recall the setup I shared in AFRM with you back in November of last year, it bears similarities from a technical analysis perspective. The same goes for the setup I shared in CELH and DKNG, to name a couple more.
You have rising key moving averages and a stock trading in a tight range, with upward momentum, near a critical breakout and inflection level. What I like most about this setup is the defined risk reward it offers me. While each stock’s technicals differ, they are similar from a charting and psychological perspective.
*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.
My plan for NVDA is straightforward. It has displayed impressive relative strength vs. the overall market on week 1. If the market catches a bid, NVDA might increase its relative strength and potentially blow past $500.
I am looking to get long near $500 if the stock confirms a breakout over this critical level in terms of staying power and volume. Once I see confirmation, I will initially enter long with a stop at the day’s low. Given the length of the consolidation, I will be looking for multi-day momentum. I plan to take off a significant portion of the long into a 1 ATR up move, so between $510- $512, and trail the rest for up to 3 days, using the hourly chart and higher lows.
The last two ideas are both day two short plays, in small caps: AIMD and BNZI
Both stocks traded abnormal volume and faded on Friday, leaving significant over head resistance and potential supply. Therefore, I like to look for a pushback into possible failure levels, where supply might enter the fray and overwhelm the tape, failing and a good risk: reward opportunity to position short.
Important to remember: Always keep in mind the float’s size, locate availability, and how that may impact the price action. Therefore, if they pop and reclaim their multi-day VWAP, a short trap and secondary squeeze might take place, and consequently, it’s essential to wait for confirmation and not be too biased.
*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, in BNZI, I would be looking for a push toward $2.80 – $3 and intraday failure to get short for a one-day swing back toward mid to low $2s.
*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.
Similarly, in AIMD, I would be looking for the stock to push toward the $3.5 area and stuff / fail to get short intraday, targeting a one-day swing short for a move back toward the lows from Friday.