The Weekly Trade Plan: Top Stock Ideas & In-Depth Execution Strategy – Week of July 22, 2024

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Merchants,

I’ll be sharing my high concepts, thought course of, and exact entry and exit plans with you for the upcoming week.

Now, simply earlier than we get into that, some essential reminders. Earnings are getting underway, and this week, a number of market giants, like Tesla and Alphabet, reporting earnings. Final week was pushed in lots of elements by breaking information and headlines, which created each alternatives and uncertainty. So, an extra reminder to at all times be in tune with what is occurring and versatile sufficient to adapt your plans and danger administration accordingly.

Now, for the week forward, here’s what I’m watching.

Stalking Small Caps for a Lengthy Entry (IWM/TNA)

Undoubtedly, one of many high alternatives to date within the month has been the breakout in IWM, adopted by the pullback commerce, and I’m glad to have seen a number of merchants on the desk crush the opps. Within the newest Inside Entry assembly, we reviewed the chance within the IWM intimately.

Now, just like my ideas final week, my high thought coming into the week will probably be stalking the IWM for a backside and lengthy entry for a bounce and potential second leg.

*Please word that the costs and different statistics on this web page are hypothetical, and don’t replicate the affect, if any, of sure market components reminiscent of liquidity, slippage and commissions.

Right here’s my plan:

It was a implausible higher-timeframe breakout, adopted by a gradual pullback into the tip of final week. With the realm of $216 establishing itself on Friday as help, it should now be a key space I watch going ahead.

Ideally, I want to see IWM show some relative energy to the general market, indicating that the theme of short-term outperformance stays intact. For an entry, I want to see a better low versus Friday’s low and/or a wash under Friday’s low and speedy reclaim. That will get me to position a starter place lengthy. I want to see the IWM maintain agency above the $218 zone and Friday’s excessive to measurement into the place. Whereas I’ll handle this place on the 15-minute timeframe, scaling out on larger highs and trailing utilizing larger lows, I may even goal ATRs to scale out and key every day ranges over a number of days, reminiscent of $222 and $225.

Listed below are A number of Extra Concepts for the Week

Larger Low in Bitcoin Names: Bitcoin had an awesome restoration final week. Going ahead, I’ll be monitoring crypto-related names, reminiscent of MARA, CLSK, IBIT, and many others. For instance, in MARA, together with retaining an in depth eye on Bitcoin, I will probably be searching for additional construct and a better low on this consolidation for a possible long-swing entry. Given the extent of Bitcoin’s bounce, I received’t be too desirous to pay up however quite monitor the motion going ahead to see the way it shapes up.

Momentum Trades in SERV: Lovely momentum mover on Friday, providing sensible lengthy and quick trades intraday. When you solely want to take a look at the SOUN chart to see the way it ends, there is no such thing as a must be biased within the quick time period. I’ll be actively watching this for momentum trades intraday till a transparent bottom is confirmed; on this case, I’ll change to a swing mindset. What may that appear to be to substantiate? Blow-off high, consecutive decrease highs, uptrend break, shift in worth motion, and VWAP crack.

Tesla and Alphabet Earnings: Two mega-caps report early subsequent week. I’ll search for alternatives after earnings. First, earlier than I search for a setup, I’ll familiarize myself with key ranges, general sentiment, and the outcomes. Solely then will I familiarize myself with the worth motion and look to type a commerce plan if a setup begins to type. We’ll go over this and overview the motion in additional element within the upcoming Inside Entry assembly.