Trader, I have fresh ideas that could make the upcoming week exciting. In this update, I’ll explain my thought process and share my entry and exit strategies for my top picks, which are primed for significant directional moves.
As I discussed in detail and thoroughly reviewed the exact trades with my executions in my latest Inside Access meeting, the watchlist from last week was on point, with several names making significant moves and providing great opportunities.
If you, too, want a behind-the-scenes look at how I execute my ideas and those of other traders on the desk, be sure to check out Inside Access.
Following last week’s ideas, here are updated plans and some fresh names for the upcoming week.
Lower-High Continuation Short in Semis
Last week, the rotation amongst the magnificent seven members and overall market breadth were telling for me. Notably, I liked the relative weakness on the bounce in the semis. While I had a great long position in NVDA, as I planned in my watchlist, I am now looking for further downside in the sector.
Here’s my plan for NVDA:
*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.
I am already positioned short with a small starter position. However, going forward, I am looking for lower highs on the 15-min to hold firm and a downtrend to ensue. I would like to put risk on once that trend becomes more prevalent. As that develops, I will put risk-on for the swing, stopping above the lower high, and target a breakdown to add. That breakdown spot is around support of $123. After that, target one is a move toward $120 significant support. After locking in some gains, I will look to trail my stop using lower highs and piecing out more for a move toward $115 or lower, depending on the action and trend that develops.
Similarly, I am watching SMH, the sector ETF.
*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.
For SMH, I like the failed breakout on Friday and weak close, which put it back in the range. I also have a small starter position versus $265 to Friday’s high. I am looking to add if I see relative weakness in the sector and a breakdown below the multi-day support zone. The main target is a move toward $250 to lock in profits, after that trailing my stop on the five or 15-minute lower highs, depending on the trend and action.
An additional name to monitor, with a similar plan, is ARM.
Additional ideas for the upcoming week, which will be shortened for July 4th:
FFIE: I’m praying this has a secondary push above last week’s range and highs. However, if it pops back into the $0.60s and fails, I would look for a short swing versus the day’s high and target a move back toward $0.4 – $0.3.
MLGO: Monitoring this for a trend and character change. I need to see significant selling occurring and a lengthy hold below its intraday vwap. I would look for momentum breakdown and trade within its downtrend for the eventual fade. If it holds up, I will not be battling this—easy setup or no trade here.
DJT: There was a steady selloff on Friday on heightened volume. I am monitoring this going forward for a pushback into support that turned into resistance near the multi-day VWAP. If a bounce forms and fails intraday, I look for a short-term short versus the high of the day.
XLE and XLF: Nice rotation and chart formations for the sector and many leading names. I will discuss this in more detail in my next Inside Access meeting.
