Traders,
As always, I’m looking forward to sharing my top swing ideas with you for the upcoming week, along with my exact entry and exit targets for setups that might have significant follow-through.
My ideas have been isolated to individual names and outlier scenarios for several weeks rather than the overall market. That’s because the overall market lacks a trend and direction right now. I have discussed this in more detail in my weekly meeting in the SMB Inside Access.
Sticking with that theme and doubling down on patience, allowing the market to show its hand better before I get more aggressive with swing ideas, here are my top ideas for the upcoming week.
Continuation in Alphabet
Fantastic earnings, along with the buyback and dividend announcements. Following the earnings gap, it had several days of profit-taking, right back into the upward-moving 5-day MA. After failing to break down on Friday and closing near the highs, I’m looking for a higher low and a multi-day move back to the highs.
Here’s my exact 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.
Clear support at Friday’s low, following the multi-day selloff, at $164. Resistance stands firm at Friday’s high, near $168. Ideally, I want GOOGL to push above and hold above Friday’s high. That will be my signal to enter long, with a stop at the day’s low once it has been confirmed.
I am looking to take off half of the position toward $172, a potential resistance zone, and 1 ATR from the $168 entry zone. At that point, I will trail my stop on the 15-minute timeframe, using higher lows, and look to scale out of the position slowly if it makes considerable intraday higher highs.
Lower High / Blowoff in GME
GME experienced a fantastic squeeze on Friday, ending the week up close to 40%. This was an amazing move, and from an intraday standpoint, there were some excellent momentum-long opportunities on Friday.
However, with it so stretched from the multi-day VWAP on no fundamentally changing news, I am looking for either a blowoff or a lower high versus Friday’s high to enter short.
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.
There are two potential entry setups. Firstly, If the stock pushes toward Friday’s high and fails, engulfing the morning push higher, I will enter short versus the high of the day. My first target, where I will look to cover up to half of the position, would be a move to the 2-day VWAP, which would be near $15. After that, I will look to trail the stop using lower highs on the 5-minute timeframe or reclaim the intraday VWAP. Ultimately, scaling out of the position on extensions from VWAP intraday for a position of up to two days.
Alternatively, if GME holds VWAP and pushes above Friday’s high, I will be hands-off and wait for a clear top and backside confirmation. Once that is confirmed and the uptrend has broken, I will focus on shorting a lower high with the same exit targets as laid out in the above scenario.
Additional Ideas to Monitor:
SGBX: Small float, so I’m not interested if this goes sideways and volume dies down, potentially setting up a liquidity trap. Rather, I will be focused on it if the first move is to the upside, into potential supply zones of $7 – $8, for failure and a short versus the high of the day for a move back to $5.
*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.
BABA: Beautiful continuation to the upside in China names last week. I certainly won’t chase up here. Looking for 2 – 3 day pullback or sideways action and then targeting a higher low or breakout for continuation to the upside.
*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.
JAGX: The long played out well from last week. Ideally, this has some continuation to the upside, $.40 – $.60, and blowoff action, setting up an excellent short-swing opportunity for the eventual raise and move back to reality.
*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.