Traders,
We have a short four-day week ahead, so I expect decreased volume across the board, and outlier moves in small-cap names. In that regard, keeping your guard rails up and focus will be essential.
So, without further ado, let’s get right into my top ideas for this week’s action. I’ll go over my best ideas, which could make significant directional moves, and outline my thought process and entry and exit targets.
Continuation in COIN
I had a nice long swing last week, one that I discussed in detail inside SMB Inside Access.
I like how COIN has broken its bullish wedge. After multiple attempts at the 50-day, the stock has finally been able to close above it.
Ideally, one would want to be long versus $220 right now, after the high-teen / $220 breakout. However, as I have some cushion in the stock now, after capturing a multi-day move last week after it broke above $216 and covering most in the high $230s, I will be looking for a re-entry on the long side.
Here’s my plan:
*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 looking for a dip / higher low in the region of $232 – $228, and a steady VWAP reclaim after that. That would provide a solid entry point and level to trade against on a higher timeframe. I will be using the 15-minute timeframe here for entry and management, together with intraday and multi-day VWAPs.
My first target will be a small scale out above Friday’s high. After that, I will use a full-ATR target, somewhere near $245, to take up to half of the position. After that, I will be focused on trailing the stop using higher lows and scaling out of the long over multiple days as/if the stock makes significant intraday higher highs / extends from its VWAP.
Higher-Low Entry in BABA
I have spoken about this for a while. From a much higher timeframe, I have been stalking it and had my original entry near $70. However, on a more swing timeframe, looking for a position for up to a week or two, I am interested in this pullback.
Fundamentally and technically, I like the stock for a long-term hold. From a swing mindset, I like the significant push off the lows in April, extension far above its 200-day, and now a steady pullback and reset into the 200-day. For me, it is about price stabilization and building energy within a new uptrend.
Here’s my plan:
*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.
As the base continues to form above its 200-day, I will buy dips, starting with an initial wide stop near $77.5, giving it room. If it firms up and we get higher lows and a break above the developing consolidation, I will then look to add my size and increase my stop to the days/consolidations low.
My first target would be a move toward $85, where I will piece out around a third of the position. After that, I will ultimately target a move back toward the recent highs. However, I will be trailing it using the hourly timeframe’s higher lows and extended higher highs to be taking a profit.
Additional Ideas:
FFIE: This is an excellent plant from last week. Earnings are set for Tuesday. I am hoping for a push ahead of its earnings. $1.4 – $1.7 would be a great short entry for a move back toward where the move started.
LUCY: Penny stock with a small float that traded incredible volume on Friday. Ideally, this turns into a multi-day runner for an eventual blow-off top/trend break and swing short entry. If it holds up on Tuesday, traps and reclaims intraday will be open for a long. Let’s see where it opens.
GME: Put out the completed ATM PR on Friday. Hopefully, it will bounce. That would be a gift to shorts, in my opinion. $25 – $30+ would get me thinking about potential failure and short swing entry. There is a ton of overhead now.