Merchants, it’s been an eventful weekend, to say the least, with the $TRUMP and now $MELANIA meme cash grabbing all of the headlines and a spotlight because the inauguration approaches. No matter whether or not that is good or unhealthy, I believe it supplies an perception into what the subsequent 4 years might appear to be. For us merchants, it doubtless spells elevated volatility and, with it, alternative.
For this week, my focus will stay totally on move2move buying and selling, as mentioned intimately in InsideAccess just lately. With that, my consideration will move to day 1 in-play names. However coming into the week, listed here are my prime concepts with pre-determined plans and situations.
(NASDAQ: DJT) Whereas it seems unlikely, given what has transpired over the weekend to this point with the meme cash and the insane market valuation of the trump coin, it’s value being ready for a possible outlier state of affairs. So what’s that state of affairs? I hope the elevated FOMO and total consideration ends in a ramp increased in DJT on Tuesday towards vital resistance and provide between $45 – $50 from pre and post-election. If that occurs on a gap-up or morning chase, I’d be on excessive alert for provide to hit the tape and for an intraday fade versus the HOD. If a downtrend holds agency and the inventory closes close to the day’s low, I’d take a chunk as a swing. I’m treating this and categorizing it as a possible sell-the-news alternative. Importantly, to behave, I’d must see the immense provide that now exists from October and November overwhelm any shopping for inside that focused zone. On the off likelihood that this gaps up and holds above VWAP, I might not brief it.
*Please be aware that the costs and different statistics on this web page are hypothetical, and don’t replicate the impression, if any, of sure market components reminiscent of liquidity, slippage and commissions.
(OTC: FNMA): I missed the bounce entry on Friday, which I used to be seeking to place each for an intraday and long-term play. I actually won’t be seeking to chase highs this week. As an alternative, as this story develops and the newfound uptrend positive factors momentum and growth, I’ll have alerts for increased lows inside this forming consolidation. If the inventory can provide me an entry inside this forming vary, close to $6, I’d look to get lengthy versus $5, so long as the narrative stays intact. Ideally, a lengthier consolidation now types, permitting the value to digest and a place to be constructed on dips versus $5.
*Please be aware that the costs and different statistics on this web page are hypothetical, and don’t replicate the impression, if any, of sure market components reminiscent of liquidity, slippage and commissions.
(NYSE: RDDT) Straight ahead technical setup right here. Because the inventory continues to consolidate, with a contracting vary and now converging short-term SMAs, so too does its quantity, doubtlessly resulting in a breakout over $180. So, if the inventory can push over $180 together with elevated RVOL / a burst of quantity, I’d look to enter lengthy versus the LOD. RDDT’s a higher-ATR identify, so holding measurement and danger in test will probably be essential so I don’t get shaken out. I’m concentrating on excessive $180s to take half off and path the remainder versus the day’s low, much like the SMTC breakout concept from final week.
*Please be aware that the costs and different statistics on this web page are hypothetical, and don’t replicate the impression, if any, of sure market components reminiscent of liquidity, slippage and commissions.
Crypto-Associated Shares
(NASDAQ: HOOD) As I’m scripting this, Bitcoin is making new all-time highs, and we’re experiencing meme-coin craziness. So, it’s value holding a detailed eye on all crypto-related shares tomorrow. HOOD has proven spectacular power and has been a frontrunner YTD to this point. I like this on dips nearer to earlier resistance $44 – $45. Nonetheless, if this hole is over $50+ and fails to comply with by or exhausts, it will likely be on watch for brief intraday alternatives.
*Please be aware that the costs and different statistics on this web page are hypothetical, and don’t replicate the impression, if any, of sure market components reminiscent of liquidity, slippage and commissions.
(NASDAQ: MSTR) Once more, with the extent of hypothesis and fomo being off the charts proper now, and Bitcoin at highs, I’d think about we might see a significant hole up in MSTR. I received’t chase that lengthy. As an alternative, I’d look left at a number of failure zones and overhead between $425 – $445 for a possible intraday brief. The important thing phrase right here is intraday. I’m not seeking to place brief for a major transfer. It’s strictly move2move buying and selling.
*Please be aware that the costs and different statistics on this web page are hypothetical, and don’t replicate the impression, if any, of sure market components reminiscent of liquidity, slippage and commissions.
Different names on watch aside of crypto/bitcoin theme: BTCT, COIN, RIOT.
There ought to be no scarcity of gappers and in-play names tomorrow and this week, from small to giant caps, so it will likely be important to slender down the main focus and double down on inventory choice.
Whereas so much will probably be transferring, please keep in mind: simply because one thing is transferring doesn’t essentially imply there’s an edge there. Crucial are inventory choice, danger administration, and sticking to your course of. And if volatility will increase, that mechanically sizes you up, so double down on danger administration.
And lastly, as I spoke about at size in my newest IA assembly, I’ll be paying shut consideration to key resistance and inflection ranges in SPY and QQQs, together with notable setups in market-leading names like GOOGL, AMZN, and META.
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