Equities ended up dropping at the end of the day on Friday — despite looking strong every time I looked at it. Price closed at the open and price dropped more this morning. The S&P is hovering near the highs of a key area that’s held a few times, and is the most recent resistance level that price broke out of.
It looks like a retest to me, and based on this, I’m expecting strength in the near future. By near future, I mean this week, not necessarily just tomorrow. I say that because, since price is near the highs of that key level, I could see another down/sideways day or two before the push back up. I’m just going to look for great setups — and I’m not playing bases/breakouts — and make the best decision I can.
TSLA – Long – This has been pushing up strong since the beginning of the year (with the market) and over the last couple of days has reached a pretty strong resistance/support area. Honestly, just looking at the daily chart, a part of me wants to just put in a buy order at $200 — but like with DOW last week, for example, it could only push up slightly, and end up being a break-even trade, at best, if my stop is too wide, so I’ll look for more responsible entry/stop/target levels
AMZN – Long – This looks like a good candidate for a new strategy I wanted to try. Since I don’t want to play the breakouts, and I’m looking more for retests, I’ve considered putting in buy-limit orders at support areas while a security is on it’s way down, and then putting my stop at the next level below that hoping to catch a huge move on a bounce off of support. AMZN, too, has been pushing up since the beginning of the year; and on the way up has taken out a couple of prior resistance areas. Price spiked last Thursday, but then dropped all day Friday and today. I’m considering putting in a limit order at one of those resistance areas. We’ll see
AMD – Long – AMD went pretty vertical at the end of last week, but has dropped since then. Price is at a fairly minor key area from back in September/October, so I’m tempted, but there’s a stronger key area a bit below, and I wouldn’t be shocked to see price fall that far this week. That said, if I’m anticipating the market to go up this week, why wouldn’t this go with it? I might just look for a trade here and take a smaller position size
NVDA – Long – Over the past 2 weeks, price has taken out a couple of key levels, and, like a couple others here, peaked last Thursday, reaching a key level from last year. Unlike the others, though, this one has held on to it’s strength for the most part, with both Friday and today closing higher than it’s open. The 4h chart looks like a pretty decent flag, so I might consider a longer-term play here, too. Another pro for taking longer term (4hour+ charts) trades is I can put multiple trades out in one day because the chances of them triggering an exit in the same day is less. I thought that’d be the case with hourly charts, but so far hasn’t been. I need to go out one level, and this looks like a good candidate for that.
SHOP – Long – Shop has a good drop after the current support area, like NVDA, and appears to be flagging on the 4h chart. I like it similarly to NVDA, so I’ll keep an eye on it. I might run numbers like I did in NVDA and potentially put an order out, based on the 4h chart. Actually, let’s not do that. Let’s get up tomorrow morning, get to the charts before the open, and make decisions with a more clear mind
C – Long – Instead of having a down day today, C gapped down, but had a strong up-day from there. The highs of the day were right at a key level — right at $51. In addition to that, price gapped down last week, and there’s a fairly sizable gap that could be filled on the up side. I’m not sure where I want to look for entries yet, but this looks like maybe the strongest candidate.
DIS – Long – This dropped from it’s Thursday peak today/Friday, but today, it wicked into the prior “base” and ended up closing near the highs/the resistance area, creating a decent bullish hammer. Hell, I might run numbers and put an order here based on the daily chart. This looks really solid, too.
AMZN/GOOG/MSFT – L – These, among others, look like they could be good candidates for the new strategy I described in AMZN’s writeup above. Since I have a few that I like, and since it’s a new strategy that I’d like to test, I think I’ll run numbers and pull the trigger on all three in my practice account tomorrow. I wish I could have 2 instances of ThinkOrSwim open at the same time, but that’s something I’ll figure out tomorrow