Traders,
In this weekly watchlist, I’ll outline my top ideas for the week and provide my entry and exit plans.
Starting with the top idea from last week, Tesla.
Higher Low and Continuation in TSLA
Tesla’s FRD setup for a reversion was perfect last week from the watchlist, and it offered numerous opportunities and setups to capture momentum lower. After three consecutive days of selling and making a measured pullback, the pullback appeared exhausted Friday as the stock displayed relative strength to the overall market. The move on Friday relative to the overall market indicated a potential bottom and higher low.
*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.
My Idea and Plan: With Friday’s low near $309 as the line in the sand, I will be eyeing a pullback, higher low, dips to get long. Ideally, I’d like to see the stock offer one dip and reclaim toget long against Friday’s low and look to size up further on a HOD break or steady VWAP consolidation breakout. My first target area is the $328 – $330 region, with my second target area $336, a significant area of previous support that might act as resistance now.
Liquidity Crisis in MVST
Fantastic trader on Wednesday last week, offering immense range and liquidity. Now, having had multiple inside days and volume dropping off significantly from over a billion traded on day one to just 32 million on day three with the stock still hanging out above its multi-day VWAP and critical $0.65 area, a liquidity trap and push higher similar to FOXO could follow.
*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.
My Plan: If the stock creeps toward resistance in the premarket on light volume, offering no easy exits for short-swings, I will look to get long a starter and size full above $1 with a momentum stop. Alternatively, if the stock begins to consolidate above $0.90 on elevated RVOL, I’ll enter long versus LOD, and upon a $1 breakout, I’ll add to the position and move my stop to the low of the 5-minute breakout candle for momentum. This would not be a swing trade.
Backside in DXYZ
My Idea and Plan: Following the election euphoria, an extension to the upside and uptrend break, and a clear backside, I am now looking for a push into prior supply and resistance zones for a failed-follow-through, lower-high short opportunity. The best case for me would be a quick push toward previous support turned resistance near the $36 – $37 area and fail. In that scenario, I would be short versus the HOD. I plan to cover up to a third of my position between $32 and $30, areas from the previous four days that might act as short-term support. After that, I will trail my position lower highs on the 15-minute, targeting a move back to the mid-20s for a final cover.
*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.
Additional Names on Watch with Alerts:
Watching PLTR Closely for Exhaust and Reversion: Incredible move higher in PLTR recently. I still haven’t seen a clear blow-off, exhaust, failed-follow-through, or FRD setup and rel. weakness. It’s still chugging along higher, so I’m hands-off and not fighting this frontside. Instead, keeping it on the side-watch for either of the setups mentioned above to materialize, and then I will react.
Relative Strength in XLF / Financials: Impressive staying power near the 52-week highs in financials lately, namely the XLF etf and several of its top holdings with the identical chart. If the rel. Strength continues and breaks out above last week’s high, I might initiate a breakout long with a momentum stop and turn it into a swing if we close in the upper quartile on the day.
Alerts in UAVS and MTEM: Similar plan in both of these small caps. I’ll set alerts in case they push back toward key resistance/breakdown areas from prior days. If either try and fails to follow through, I will look for a reactive short intraday for a potential roundtrip.