The Weekly Trade Plan: Top Stock Ideas & In-Depth Execution Strategy – Week of July 29, 2024

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Merchants,

Final week, the highest commerce concept that I shared in IWM performed out extraordinarily nicely and was my finest swing commerce of the week. In my newest Inside Entry assembly, I reviewed it intimately, going over my executions and thought course of.

So stick round as I share my high concepts for the upcoming buying and selling week. I’ll go over my commerce plans, thought course of, and entry and exit plans.

Beginning with small caps, but once more, for a 3rd straight week.

Continuation in Small-Caps (IWM)

Final week’s bounce-long swing performed out exceptionally nicely per the watchlist plan. Nonetheless, a brand new setup presents itself going ahead: a consolidation breakout for a second leg greater. After the bounce earlier within the week, the IWM has spent a while displaying relative energy and consolidating close to highs, establishing a consolidation breakout alternative.

The Weekly Trade Plan: Top Stock Ideas & In-Depth Execution Strategy – Week of July 29, 2024 | SMB Training

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

Right here’s my plan:

For entry, I’m in search of both a fast wash-out decrease and reclaim, thereby confirming a better low versus Friday’s low. Alternatively, because the IWM closed above the week’s resistance on Friday, I’m in search of a prolonged maintain above and would goal an intraday breakout for entry versus the day’s low.

After that, I’d goal related measured targets as I did with the earlier swing in IWM, utilizing ATR targets and higher-high extensions. My first goal could be a brand new 52-week excessive and extension above the earlier excessive of $226.64. After that, I’d look to path utilizing the identical strategy as outlined final week: 5-minute greater highs to scale out and better lows to path, focusing on a multi-day leg greater.

After all, it will likely be crucial to gauge general market sentiment, internals, and relative energy.

Reduction Rally in Semis

The final time we noticed a selloff towards the 200-day mark in SOXL, we bounced sharply as soon as we broke the steep selloff’s downtrend over a number of days. I’m not saying the identical factor will occur; nevertheless, if SOXL / the sector can agency up over its multi-day VWAP and start to base above short-term / the prior week’s key resistance ranges, I’ll look to provoke a protracted on the best aspect of the downtrend.

Right here’s my plan:

SOXL has now fallen over 40% from its 52-week highs and tapped its 200-day on Thursday. For the upcoming week, If SOXL can break its steep downtrend and base above key multiday resistance, round $43, adopted by a push greater to interrupt its downtrend, I’ll look to place lengthy with a cease on the LOD.

I’d look to carry this place for 2 to a few days, trailing utilizing greater lows on the 5-minute timeframe or the prior day’s low, relying on the value motion and RVOL of the bounce/transfer. My first goal to lock in beneficial properties and start trailing my cease could be a measured transfer towards prior resistance and a 1 ATR up transfer between $47 and $50, with an final goal being a quick transfer towards $52.

Further Small-Cap Concepts:

WINT: Small-cap liquidity traps have been taking part in out extraordinarily nicely with T+1. WINT had a powerful shut on Friday. Due to this fact, I can be monitoring this going ahead for a entice and reclaim over $8 and potential squeeze out over final week’s highs. As soon as it exhausts, I’ll shift my consideration to the quick aspect. This one is a day dealer, not a swing candidate, much like my ideas on SERV the prior week.

BFI: Friday noticed an attractive push and squeeze out, adopted by an important quick alternative as soon as the bottom was confirmed with the decrease excessive close to $0.65. I’ll set alerts within the identify in case it pops again towards $0.60 – $0.65 for a failed transfer greater and bull-trap, in search of a brief versus that failed excessive and a transfer again towards $0.40.

POAI: This was one of many high intraday short-opps from final week relating to small caps. Alerts are set within the identify in case it has a fast liquidity transfer again towards $2+ and fails for a brief again towards the low $1s.