First of all Happy Father’s Day to all the Dad’s out there! I hope you have an enjoyable weekend.
You never know what a new trading week will bring but I like to try to have things planned out in advance as much as possible and be ready for new opportunities if they present themselves. This is especially important as I work full time and can’t rely on time to be available during the trading week. I wanted to share some of my favorite long opportunities coming into next week. As usual, I’ve highlighted or indicated on the charts the price level I’m watching. I only like these names above those levels and if I enter, my stop would be slightly below. Risk management and knowing what your max loss is going to be (with the exception of a massive gap down or other unusual event of course) is, in my opinion, probably the most valuable aspect of trading based on charts / price action.
Before I get to the long setups, let’s look at small caps. This is the IWM or Russell 2000 index ETF. These guys have struggled compared to leading groups and look pretty vulnerable here in my opinion. I have volume by price anchored from the December 18 lows and a 200 day moving average. You can see price is still below the key 145-147 area and the 200 day with lots of volume above from the trading range in 2019. If you want to be short I think this is a good one to be short in. Full disclosure, I have a small position with IWM puts (150 July 17 expiration). If we see some weakness next week, which I think is quite possible, I might be adding here or opt to buy an inverse ETF of this index such as RWM. Here’s a look at IWM:
OK. Now to the potential long opportunities. Here’s some charts that have my attention and below I’ll give a simple scan I use to identify these opportunities.
The vast majority of the setups above and charts I post on Stocktwits / Twitter come from a simple scan I do in TrendSpider to help identify strong stocks in uptrends that aren’t overly extended. Below is a screen shot of the parameters I use to scan various indexes. I then quickly review all the charts from the scan and move them to a watchlist and / or set alerts for key price levels. Alerts are critical to my process as I can’t watch these all day.
If you are interested in the TrendSpider platform I’d recommend taking advantage of their free trial to see if you like it before committing. It’s a really impressive and powerful platform. You can access by clicking here TrendSpider. If you do sign up feel free to use the coupon code GRG15 for discounted pricing.
Thank you and have a great weekend.