The Weekly Trade Plan: Top Stock Ideas & In-Depth Execution Strategy – Week of October 14, 2024

Traders,

I look forward to sharing my top ideas for the upcoming week, including my precise entry and exit targets, and explaining the exact setups and scenarios I am looking for. 

This week’s outline will differ from last week’s. Last week, my plans were concentrated and isolated to the A+ mean reversion setup in a basket of Chinese stocks. My plans and ideas are more spread out for the upcoming week, without a clear A+ opportunity yet.

So, without further ado, let’s jump straight into it!

Consolidation Breakout in ROKU

The Plan and Idea: ROKU, set to report earnings on November 6, has spent over a month consolidating in a bullish formation after reclaiming its 200-day SMA. Given the stock’s ATR and beta, I’ll use smaller sizes and a wider stop. If the stock breaks and holds above Friday’s high, I’ll enter long vs. the LOD. After that, I would look to add to my position above the $79.65 pivot high, indicating a higher timeframe breakout. From there, I’ll look for an ATR up move to begin scaling out of the position while trailing my stop using higher lows on the 15-minute timeframe.

*Please note that the prices and other statistics on this page are hypothetical, and do not reflect the impact, if any, of certain market factors such as liquidity, slippage and commissions.

Continuation in Small Caps

The Plan and Idea: As I mentioned in my latest Inside Access meeting, I will be hands-off until the IWM reclaims $220. On Friday, it did just that. Therefore, I am now looking for a higher low and confirmation of buyers stepping up to support Friday’s shift in momentum. If market internals remain favorable and the IWM can confirm a higher low near its multi-day VWAP starting Friday, I would look for a long versus the day’s low. After that, I would look to add above Friday’s high, holding for a move toward $225 resistance while trailing my stop against the previous day’s low. If the move builds momentum and holds above $225, I might look for a longer-term swing trade while trailing versus the previous day’s low and maintaining a core position.

*Please note that the prices and other statistics on this page are hypothetical, and do not reflect the impact, if any, of certain market factors such as liquidity, slippage and commissions.

Continuation in Financials

The Plan and Idea: The homework I gave in my latest Inside Access meeting, ahead of the breakout in financials, could have paid off. As I mentioned, It’s always a good idea to have a list of the most promising names positioned for further upside / displaying relative strength when a sector is near a significant inflection area. The sector broke out on Friday, buoyed by leading names posting solid earnings, namely JPM. Going forward, I’ll monitor the XLF for a multi-day continuation opportunity, should the sector ETF pullback intraday – reclaim vwap (long entry vs. 5-minute higher low) and take out Friday’s high. 

*Please note that the prices and other statistics on this page are hypothetical, and do not reflect the impact, if any, of certain market factors such as liquidity, slippage and commissions.

Monitoring TWG for Backside

The Plan and Idea: On Friday, the company announced a significant offering of 27 million shares at $0.4 per share, expected to close on October 14. The stock closed just above $7 before fading in the AHs. This isn’t one I will look to fight if it holds over VWAP / multi-day VWAP on Monday. Instead, I will only focus on it if 1) it goes parabolic and exhausts stubborn shorts, setting up a mean reversion opportunity intraday, or 2) it remains heavy sub vwap, offering momentum short scalps for a potential liquidation setup.

*Please note that the prices and other statistics on this page are hypothetical, and do not reflect the impact, if any, of certain market factors such as liquidity, slippage and commissions.

Additional Names on the Watchlist:

LUNR: Falling wedge pattern. Solid close on Friday above its flattening 5-day SMA. Watching this for a hold above $8 for a potential long entry. 

*Please note that the prices and other statistics on this page are hypothetical, and do not reflect the impact, if any, of certain market factors such as liquidity, slippage and commissions.

CELH: Solid bounce on Wednesday and Thursday. Monitoring this for sideways action and a potential second leg higher above last week’s high and 50-day SMA for a move toward $40.

*Please note that the prices and other statistics on this page are hypothetical, and do not reflect the impact, if any, of certain market factors such as liquidity, slippage and commissions.

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Important Disclosures

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