Hey everyone, welcome back to another Sunday Scan. Lots of tickers to review this week, and Stan will join us for some trade reviews and main watches.
The action continues to deliver opportunities on a daily basis across several market structures. TSLA is at all-time highs, and when TSLA runs, it generally brings good liquidity across.
Last week, we saw a good influx of flows into small caps, which lit up scanners across with moves like RGTI AMPG CADL LDTC DUO, etc – and many more.
Hopefully, the action remains in the space; however, as we approach year-end and holidays, be mindful of volatility and keep size in check. What you got away with a week ago may not be possible if liquidity tightens up, as range will expand, which will make it more difficult to manage your risk.
We are already seeing some of the signs with how last week has been, where you have to be already on the bid or offer. Otherwise, you blink, and it’s gone. What started as a really good trade is now minimized or red.
Video Scan and Game Plan
The Playback
SOUN Review of the recent action in the video, highlighting the combo of factors that makes these sector stocks go further than you think. Small to mid-cap, options available, news flow, sector tender. Also, I discuss the “Option Edge” in the video – where you see strong option activity at a key level and how you can use that for range anticipation.
AI Similar idea to SOUN with many of the same ideas discussed in video.
TNX We have the Fed meeting next week that can move the market based on what they say about future cuts if the inflation data is perking up a bit. Keep an eye on rate-sensitive indices.
IWM Is one of the most rate-sensitive indices and also DIA is showing weakness compared to QQQ which has been strong with money rotating into tech again.
APP Review of the unwind in the video. The stock ran up into an anticipated event and then it didn’t get the news it needed to, so big unwinds in options and equity.
UNH Review of the action after the recent incident and now the company’s business practices are going to be reviewed and criticized by the public which can impact policy and profits/margins.
RGTI Lots of range and opportunities long and short. Finding key levels and waiting for set ups allow for opportunity maximization vs one track mind thinking on a move.
AVGO Solid ramp off the AAPL news and then great earnings contributed to a big parabolic into the end of the week.
TSLA Option action gave clues for where the stock was going this week. Tons of calls were active while the prices for the options were still reasonable so not quite ready for a mean reversion bias yet.
Main Watches
IONQ Trade review in video. Several important concepts including parabolic clear-out action into a key level and fail, followed by FFT and all-day fader type. Higher the better bias into next week for another possible short opportunity. Will use higher timeframes as a guide.
SOUN Digested the first leg with last week’s consolidation into 13-15s area and we broke out of the range on Friday. Ideally, gap up para+ fail for a setup next week. It has the volume, it has the liquidity, so will remain on watch as the week develops.
PLTR Similar to IONQ, higher the better, ideally 80s+ for some restest of previous local top and join any failed to follow through.
TSLA Continues its march to all time highs on daily basis. Similar setup as NVDA SMCI earlier in the year. It’s just TSLA, though, so it always like to do a bit extra. Maybe 450-500 blow off into monthly options expiration on Friday and then mean reversion set up.
DXYZ Will monitor along with TSLA. Really good trader if you respect levels and stay away from chop. It has range, it trades thinly, so it doesn’t require a lot to have a good trade.
MSTR On watch with BTC if it has another leg up. It was just announced it was added to Nasdaq 100 so could give it an extra boost next week but needs BTC to go up. Nice consolidation for the last few weeks.
NVDA Looks pretty weak overall into the end of the year. Maybe some funds are pivoting out of it and into some other large names with good fundamentals. Some US chip restrictions being signed into law may also be somewhat of a headwind for a while. Looking for a possible move down into the 120s and maybe lower if the market pulls but nothing to force if it just stalls.
SMCI Also looking pretty weak after its big run-up with the recent news of it finding a new accounting firm. Likely just trades with other AI names unless we get a new headline. SMCI was also just dropped from the Nasdaq 100, so that could be a headwind for it too. Looking to grab puts on it if it sets up.
SMR OKLO Looks like sector rotation and people are pivoting out of nuclear names into the end of the year. Many of these are looking weak and may have a nice hard flush into the end of the year to take advantage of. Trend lines are your friend in these.
Thank you, everyone!!!
thank you!!
Thanks guys!