Happy Sunday, Traders
I trust you have all had a great weekend. Last week was a shortened trading week, which indeed showed as it relates to swing opportunities.
As mentioned in the previous watch list, I was not expecting fireworks. However, I didn’t expect such fruitful intraday, move2move-type trading opportunities. While my focus on these watchlists is strictly to share my thoughts, plans, and insights concerning swing trading, I wanted to drop a few crumbs just in case any of you would like to explore the intraday plays from last week further.
Top Intraday Plays From Last Week:
- AMC Dilution Short 9/6
- AXLA long breakout 9/7
- AAPL washout long off the open 9/7
- HKIT liquidation short 9/6
Intraday trading, as it relates to specific stocks, is not something I can plan for in detail ahead of time. Why? Because new stocks pop up in the pre-market or intraday, it’s not possible for me to plan intraday trades days in advance, as I do with swing ideas.
Now, back to swing trading!
So, as you know from last week’s watchlist, CVNA and AFRM were the top two focuses. While CVNA worked well, AFRM did not. So, before we get into the new watchlist, let’s quickly touch on AFRM.
AFRM continues to hold the uptrend and has failed on multiple attempts to keep below $22, indicating that sellers are yet to take control and longs are yet to take profits. As a result, the confirmation needed to get short was not achieved, and a short swing was not entered.
The key takeaway: Remember, price action is king. Just because there is an idea does not mean a trade should be placed. One must always wait for confirmation and fight for price to achieve a solid entry. Plan the trade, and trade the plan!
Advanced Micro Devices (NASDAQ: AMD)
AMD was featured about a month ago on the watchlist for a potential long. However, that trade idea did not trigger or materialize. Fast forward to today, and I have placed it back on my watchlist and radar as the stock showed some brief relative strength in the sector last week and now finds itself consolidating near a potential breakout level.
With a current lack of direction and conviction in the overall market, I won’t be doing any predicting here. I will be patiently stalking my swing ideas and awaiting price and volume confirmation before entering. In the current environment, patience and selection are vital for success and consistency.
My Trade Plan for AMD:
*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.
$110 serves as the resistance and critical inflection level. Therefore, I am looking for the stock to base above $110 convincingly. I need to see sustained volume and interest above $110, which signals buyers have firmly taken control.
If the stock can hold above $110 with all of the above being confirmed, I would look to go long for a 3 – 5-day swing trade. Initially, I will give the stock some breathing room and place a stop half an ATR below my entry price. As the trade works, I plan on trailing my stop to the most recent higher low on the hourly chart.
I have two targets in mind. The first target for the position is $115, a potential resistance area. I plan to take off half of the position. The second and final target is $120, a critical resistance level where the stock has failed multiple times.
Tesla (NASDAQ: TSLA)
While off almost $50 from its recent high, Tesla remains up over 100% year-to-date (YTD). Along with the overall market, especially high-beta tech names, a need for conviction or trend is showing itself.
Interestingly, given the technical setup, it has created an opportunity to be reactive, unbiased, and open-minded.
Let me explain:
My Trade Plan for TSLA
Tesla has spent almost two weeks consolidating in a tight range, which might confirm a lower high or higher low on the higher time frame. A break above or below the consolidation’s support or resistance will confirm the trend in the short term.
*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.
Therefore, I am looking for a potential long or short, for a 2 – 3 day move.
If the stock can break above Friday’s high and hold firmly around $260, I will look to go long for a move to $270. If a breakout above $260 is confirmed, I do not want to see the stock trade back into the range, and therefore, I will set a tight stop around $257. I plan to cover my entire position as the stock trades at $270.
The second trade idea is a short if the stock breaks below $243 and holds firmly in the low $240s. If this occurs, I will enter a short position, risking $246, as I would not want to see the stock trade back to mid-range. My target would be a 2 – 3 day swing position into $230, a previous level of support.
As mentioned, if the trade triggers, it might play out within one day, but I will allow for 2 – 3 days on the position if it takes longer to develop, as long as there is no character change.