Traders, I look forward to sharing my top setups for the upcoming week, including my entry and exit targets for potential trades.
Please remember that the adjustments I made over the previous several weeks remain in effect, especially considering this week’s April 2nd catalyst. If you need a reminder, refer back to previous watchlists.
Continuation Lower in Bitcoin
With the market rejecting near its 200-day SMA and confirming its bearish flag breakdown on Friday, Bitcoin presented a fantastic reactive short on Friday, after displaying some initial relative weakness.
*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.
Ahead of the tariff catalyst for the upcoming week, in the event we experience continuation early on ahead of the event, I like IBIT for continuation lower. I plan to identify in-line or relative weakness in Bitcoin. If internals remain favorable for such a thesis, I would look for lower high-entries to get short versus Friday’s high, as long as we stay below the 20-day. I’d also be open to momentum shorts intraday sub Friday’s low. $46 area of potential support is the main target, with a potential 5-minute lower high trail on the rest.
Waiting for Backside Confirmation in MLGO
MLGO isn’t a name to battle on the frontside. The rigged action tells the story from bearish action following PR’s and clearouts, only to trap and reclaim. Might it have another push above Last week’s high and potentially squeeze further than I think? Absolutely. Given its history and fundamentals, I’m bearish and looking for a potential liquidation opportunity. However, the key for me is to wait for confirmation.
*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.
This is a pure price action and tape trade, as I am seeking a significant shift in momentum and character on the tape. I need to see sustained refresh selling, hidden selling, and a hold underneath significant support of $15 and VWAP. Until then, I’ll be hands off and monitor the price action.
Then a Couple of Names Depending on the Overall Market’s direction ahead of “liberation day”.
Consolidation Breakdown in RKLB
Similar setup and trade opportunity as my trade short in AVGO last week. Simply, I’m looking for rel. Weakness intraday in RKLB, and for the stock to hold below $18, to initiate a short versus the HOD / hold green. While it’s set up for a potential multi-day swing short, given the market catalyst, I’d be cautious and likely look for an intraday hold targeting a move toward $16 support zone.
*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.
Previous Resistance Becomes Support in Tesla (over under $250)
After a couple of weeks of $250 serving as significant resistance in Tesla, we finally broke above and had a couple days of impressive follow-through and strength last week. It’s been a great trading vehicle.
If the market defies the overall sentiment and trend early in the week, or following April 2nd, I’d like for a higher-low / continued relative strength in Tesla around this key level. If Tesla pulls into this zone and confirms newfound support, I might look for a long. If Tesla dips belowand reclaims, I might look 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.
On April 2nd, Tesla is expected to announce Q1 delivery figures. Of course, it’s expected to miss, considering everything that’s gone on. How much of it is already priced in? My plan above remains. However, I’m also open-minded to a weak hold underneath $250 and willing to be short intraday for momentum. The key right now in this market is not to fight the tape. The trend is your friend!
And lastly, just to add some general thoughts: If the market were to sell off ahead of and into April 2nd, following on from Friday’s action, and present a “sell the news” like event (in this case going long), how might I react if the market bottoms? It’s always a good idea to run through several scenarios beforehand and enable yourself to respond quickly if one develops. For example, if that were to happen, I’d focus on a short in VXX as a high priority and a potential long in SPY and QQQs. Just one upcoming scenario for the week among many others, but in a tape like this with increased uncertainty and volatility, it’s important to run through various scenarios.