The Weekly Trade Plan: Top Stock Ideas & In-Depth Execution Strategy – Week of August 12, 2024

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Merchants,

It’s a novel and thrilling buying and selling surroundings, and as all the time, I sit up for sharing my ideas and buying and selling plans with you.

Essential Changes and Common Market Ideas

Final week was every week for the books concerning the market’s volatility, sheer vary, and value motion, particularly a number of main mega-cap shares and ETFs. Relating to mindset and changes, it stays a buying and selling surroundings versus swing, for my part.

Positive, the bounce off the panic lows on Monday labored nicely, however the a number of 1 – 2% declines alongside the way in which up make swing positions more and more tough within the surroundings in comparison with intraday momentum buying and selling.

I’ll intently monitor the general market, SPY, and QQQs this week as we come into a possible resistance band. For SPY, that space of doable resistance that would market a decrease excessive and downtrend continuation is $537 – $540.

*Please observe that the costs and different statistics on this web page are hypothetical, and don’t mirror the influence, if any, of sure market elements akin to liquidity, slippage and commissions.

For tech and innovation (QQQ), which has led the way in which on the way in which down, and now, with this bounce, on the way in which up, that band matches as much as its 100-day, close to $456. As the value edges nearer to this potential zone of resistance available in the market, I’ll pay shut consideration to market internals and value motion for indicators of a doable turning level and skewed R: R alternative for momentum shorts.

If that situation begins to kind, a number of avenues exist to specific it. For instance, not solely might I be concerned in main market ETFs, however I’d contemplate figuring out comparatively weak names for momentum trades on the quick facet.

For instance, other than the apparent go-to names and ETFs, ARKK is one other fascinating possibility proper now for the above concept, given the bounce into a big zone of potential resistance from its day by day chart. If the market stalls after which turns decrease, ARKK, which has traded again right into a hefty stage of potential resistance close to $42, might provide skewed R: R.

The alternative may occur as nicely. That’s to say, the market may digest the current week’s motion, with volatility subsiding, have a slight pullback, and proper additional time by going sideways. If that happens, I’d search for beaten-down names buying and selling at essential inflection factors, providing the potential for fast directional strikes if internals start to enhance.

For instance, a momentum breakout in MSFT: Contracting flag close to the resistance of its steep downtrend, providing the potential for momentum longs or shorts relying available on the market’s general route. If the market stabilizes and finds greater footing, MSFT’s bounce might develop legs, providing a clear momentum entry above $410.

In such a case, I’d be lengthy on the breakout of $410, with a cease on the LOD, scaling out of the place on prolonged greater highs on the 5-minute timeframe whereas trailing my cease utilizing greater lows. An analogous setup exists in TSLA, consolidating between a flattening 200-day and 100-day SMA, making it a candidate for a momentum breakout commerce in both route.

Further Concepts Uncorrelated to the General Market:

HUGE Pop into Resistance to Brief: Superior quantity and mover on Friday, contemplating its % transfer. I’ll simply have some alerts set within the title in case quantity comes again in and drives it again towards $0.30 + for a possible failed follow-through setup and quick vs. the excessive for a transfer again towards $0.20—teenagers.

BYND Pops to Brief: On Friday, as soon as the value turned at $9 for a roundtrip quick, much like CHWY, It supplied a superb quick alternative. It’s nice to see a number of individuals on the desk do nicely right here. It’s a protracted shot, however I’ll have alerts set $7+ for any secondary transfer off choices exercise for a re-do.