Traders,
I look forward to sharing my top setups for the upcoming week, including potential trades in Tesla, Palantir, QQQs, and more.
I’ll continue with previous adjustments to maintain a move2move mindset for the early part of next week, barring any significant developments or headlines and whether or not the market can firm up above its 5-day SMA.
So, let’s get right into my top ideas for the week.
Continuation Higher in Tesla: With a strong rally in the markets and reclaim of its 5-day in SPY, QQQ, and Tesla, I’m looking for a higher continuation next week, barring any significant headlines.
For Tesla, I’d like to see significant relative strength to its sector. Secondly, I’d like to see a breakout above Friday and last week’s high for an entry long. Depending on the intraday action, I’d either have a LOD or a consolidation breakout stop. To exit, I’d piece out around a core as the stock extends from VWAP intraday, especially if it extends close to a full ATR from 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.
If the stock closes strong along with the markets, I’d be open to swinging a third of the position versus the LOD. Ideally, I want to see $250 become support after acting as significant resistance last week. That will be an essential clue, along with relative strength or weakness. An ATR target is the primary goal. The lofty goal is the 200-day if the idea materializes.
Bounce Continuation in Tech (QQQ): Similar to the idea in Tesla, the QQQs, after their strong close on Friday and over 11% correction from 52-week highs, present a similar bounce setup. For trading the QQQs, it will be necessary to monitor relative strength, along with market internals and positioning of its top holdings.
*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 might initiate a long starter position if I notice positive internals and the QQQs holding at the 2-day VWAP and confirm a higher low. However, ideally, I’d like to see the market firm above Friday’s high before getting long. My first target for continuation from Friday’s bounce would be last week’s high, over $483. The lofty goal would be a complete ATR move, putting the target closer to $490 and its 200-day SMA. Like Tesla, I’m more focused on an intraday move, but if there’s a favorable close and steady uptrend above VWAP, I’d be open to carrying a small piece overnight.
Along with QQQs and Tesla, I will monitor AMZN and PLTR for similar opportunities.
Of course, if the market fails to hold Friday’s high early next week and we churn back in the range near the lows, my bias and plan will shift to relatively weak stocks for momentum shorts. It’s essential to remain open-minded and nimble in the current environment.
Potential Sell the News in Quantum: Strong bounce in the quantum basket on Friday. With NVDA’s quantum day on the 20th, Thursday, next week, I’m hopeful we’ll get a sell-the-news opportunity. Early on in the week, given the range and liquidity in names like QBTS, RGTI, and IONQ, I’ll be open to both long and short scalps.
*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, the overarching idea and potential A+ opportunity would be if we got some continuation to the upside and exhausted some stubborn swing shorts ahead of the conference. That price action and further range expansion to the upside might set up a fantastic sell-the-news short opportunity ahead of the event / during it on Thursday.
Last Week’s Small Caps on Watch: HMR, SUNE, and GV will be on the radar with alerts around potential overhead and resistance zones – In the event any of the names have a short-lived push higher back into resistance zones for potential intraday fades. Alternatively, if several days pass and they take out prior resistance, it might set up a liquidity trap for a long.
*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.