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 feel it offers an perception into what the following 4 years might appear like. For us merchants, it probably 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 circulate to day 1 in-play names. However coming into the week, listed below are my high 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 price being ready for a possible outlier situation. So what’s that situation? I hope the elevated FOMO and general consideration leads to a ramp greater 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 bit 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 probability that this gaps up and holds above VWAP, I might not quick it.
*Please notice that the costs and different statistics on this web page are hypothetical, and don’t mirror the affect, if any, of sure market components corresponding to 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 definitely won’t be seeking to chase highs this week. As a substitute, as this story develops and the newfound uptrend features momentum and improvement, I’ll have alerts for greater lows inside this forming consolidation. If the inventory may give 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 varieties, permitting the worth to digest and a place to be constructed on dips versus $5.
*Please notice that the costs and different statistics on this web page are hypothetical, and don’t mirror the affect, if any, of sure market components corresponding to 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, probably 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 title, so maintaining measurement and threat in examine might be necessary 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 thought from final week.
*Please notice that the costs and different statistics on this web page are hypothetical, and don’t mirror the affect, if any, of sure market components corresponding to 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 price maintaining an in depth eye on all crypto-related shares tomorrow. HOOD has proven spectacular energy and has been a pacesetter 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 means of or exhausts, it will likely be on watch for brief intraday alternatives.
*Please notice that the costs and different statistics on this web page are hypothetical, and don’t mirror the affect, if any, of sure market components corresponding to 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 serious hole up in MSTR. I received’t chase that lengthy. As a substitute, I’d look left at a number of failure zones and overhead between $425 – $445 for a possible intraday quick. The important thing phrase right here is intraday. I’m not seeking to place quick for a big transfer. It’s strictly move2move buying and selling.
*Please notice that the costs and different statistics on this web page are hypothetical, and don’t mirror the affect, if any, of sure market components corresponding to liquidity, slippage and commissions.
Different names on watch aside of crypto/bitcoin theme: BTCT, COIN, RIOT.
There needs 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 slim down the main target and double down on inventory choice.
Whereas so much might be shifting, please keep in mind: simply because one thing is shifting doesn’t essentially imply there’s an edge there. An important are inventory choice, threat administration, and sticking to your course of. And if volatility will increase, that mechanically sizes you up, so double down on threat 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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