Dear traders
I look forward to sharing my top swing trading ideas for the coming week. Due to market changes on Friday, this week’s idea will be different from last week’s plan. In the short term, it is time for an adjustment.
So let’s get down to business and share some practical ideas, plans, and trade management for my top swing trading ideas for the coming week.
Semi-final lower high continuation short
On Friday, a big change occurred in the semifinals. Among the semiconductor stocks that have been attracting attention following Friday’s sell-off, a short-term ceiling appears to be firmly confirmed.
*Please note that prices and other statistics on this page are hypothetical and do not reflect the impact of specific market factors such as liquidity, slippage, fees, etc.
This is a notable shift and change in character, and it presents exciting opportunities for the week ahead.
This trade can be expressed in many ways, as the entire sector is experiencing a sell-off on Friday. I will focus on my vehicle of choice, SOXL, and his NVDA, a leader in this field.
My plan for SOXL short/semi-sector continuation short is as follows.
This thought process and plan could be transferred to many other companies in the sector, including TSM, AMD, SMH, and NVDA.
Given the nearly 12% drop on Friday, I’m not going to chase this short on weakness or a gap down. In fact, if this were significantly gapped and washed out, I would turn my attention to the long bounce of the reliever.
But the main idea is to look for a rally to the level from Friday, ideally 2-day VWAP, and short on a continued decline.
After the first day’s sell-off on Friday, the sector could indeed experience up to three days of profit-taking and price discovery following the historic rally for this sector and the market as a whole.
I am targeting a push between $50 and 2-day VWAP to form a high around $52 and below to confirm entry into a short position. Once that level is confirmed during the day, short full size with a stop above the day’s high. My first goal is to move to Friday’s low, where I will cover half of the position, thereby removing risk and locking in profit.
This will then turn into a swing trade and you will be tracking the stop on the 5 minute time frame, which is the time frame you will be trading this on. Specifically, I have a swing target of $45, so the 5-minute low acts as a trailing stop. This position will take between one and two full days.
This week the main focus will be on this sector and its many movements. However, there is another short idea that I have my eye on in case I might be pushed back into the supply zone.
Short-term value from PBM lower limit high
Normally I avoid those low float, short side small cap stocks. However, the volume here tells a story and presents an interesting opportunity if the stock reaches a certain price again.
*Please note that prices and other statistics on this page are hypothetical and do not reflect the impact of specific market factors such as liquidity, slippage, fees, etc.
PBM closed at the lowest price of the day with nearly 150 million shares traded on Friday. What does it tell me? You can see that everyone who bought the stock is underwater. So, if the stock is able to move higher this Monday without trapping shorts, it will likely fail as many stalled longs look to exit on the push, creating a huge short opportunity.
So, the one-day swing short plan is as follows.
I am targeting a push around the 2-day VWAP between $3 and $3.50 and a hard failure during the day. Once confirmed, go short against the high of the move and target an end-of-day fadeback around $2. Again, this is a one-day swing, so we’ll use the 5-minute time frame and the high to track the stop, with the goal of eventually returning to the low $2.
important disclosure