The Weekly Trade Plan: Top Stock Ideas & In-Depth Execution Strategy – Week of July 15, 2024

[ad_1]

Merchants,

Prepare for an exciting week with some recent buying and selling concepts. On this replace, I’ll break down my thought course of and share my entry and exit plans for my high concepts.

Throughout my newest Inside Entry assembly, I reviewed my trades and executions from final week, together with my high trades and thought course of from Monday to Thursday. For these curious, that’s the one place I totally assessment my trades and executions.

Final week introduced some A+ alternatives, particularly with Tesla on Thursday and Friday, and the selloff within the semiconductor sector, notably NVDA on Thursday, together with different high swing alternatives comparable to IWM and XBI on Thursday—a fantastic week to assessment totally.

For the week forward, listed below are my high concepts as of proper now. After all, because the week progresses, new concepts and plans can even come into focus.

Tesla Larger Low Continuation and Extremes

In my view, Tesla offered the highest alternatives final week and warrants an intensive assessment. In the event you haven’t already, I urge you to dissect the alternatives intimately. In the event you want an concept of find out how to go about reviewing a setup intimately, try Lance’s Twitter, as he has spoken on this matter intimately.

Now, it’s vital to keep in mind that we’re simply over per week out from Tesla’s earnings. However what I like about final week’s motion, coming into this week is how Tesla discovered assist proper at its greater timeframes earlier resistance on Friday, clearly exhibiting consumers firmly in management regardless of Thursday’s fast selloff.

*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 elements comparable to liquidity, slippage and commissions.

So, right here’s my plan:

Whereas I’m open to brief scalps in Tesla, particularly if we go ‘straight’ towards $255 – $260, my major focus can be for a better low on a pullback, close to $240 – $235. I’d like to see the inventory expertise a morning wash into this zone of demand and make sure a better low within the low $240s versus Friday’s low for entry and intraday VWAP reclaim as a possible add spot. After that, I can be on the lookout for $250 as a primary goal to take earnings and path my cease utilizing greater lows on the 5 to 15-minute timeframe, relying on the value motion. In the end, I might be on the lookout for a multi-day swing concentrating on an exit above Friday’s excessive, close to mid $250s.

Small Caps (IWM) and Biotech (IBB) Continuation

Small caps and biotechs skilled a notable character shift and in-flow following the inflation information on Thursday.

IWM took out a major space of resistance, one which has held agency for a number of years, and likewise in IBB / biotechs.

So, going ahead, in IWM and IBB, I can’t look to chase energy or highs however fairly monitor each for a pullback into prior resistance. I’d wish to see consumers step up and switch prior resistance into assist, indicating and additional confirming the most important momentum shift. Ideally, the pullback is adopted by a day or two of relaxation and consolidation, organising an entry on a multi-day breakout for a leg greater and continuation.

Key ranges I’m watching within the IWM for assist: $212, 211

Key ranges I’m watching within the IBB for assist: $144, $143

Extra Concepts:

Reddit: The every day chart reveals a fantastic setup for a continuation greater. Given the inventory’s vary and liquidity, it’s vital to notice the way it trades, so I adjusted my dimension and threat. Friday’s 2-day vary break offered a fantastic lengthy entry; nonetheless, I didn’t act on it.

I’ll look ahead to a better low to verify early subsequent week for potential entry, with a large cease on lowered dimension. Alternatively, I’m additionally awaiting additional compression in value and a breakout over its highs for a momentum commerce, so long as quantity is current.

Lucid: It was a fantastic mover on Friday, and it was good to see its vary and quantity lastly broaden and squeeze out some shorts. This can be on shut watch going ahead for a brief swing. Ideally, this could lure and push nearer to $5, however I’ll be looking out for exhaustion and a failed transfer above Friday’s excessive / uptrend break / VWAP snap for a brief entry if it fails to have legs greater. I’ve an identical plan in RIVN.