Key Trade Setups for the Week: Top Entry & Exit Strategies

Summary

In this video, the speaker shares top trade ideas for the upcoming week, focusing on strategies, entry points, and exit targets. Key trade setups include potential pullbacks in Luna, measured continuations in SMMT, and reactive trades in Nvidia. The speaker also discusses ideas involving large-cap stocks like Google and XBI. The video emphasizes the importance of precise timing, risk management, and identifying market shifts. Additionally, the speaker highlights the competitive nature of professional trading and invites viewers to a free training session to potentially join SMB Capital's trading team, even for traders without prior profitability.

Takeaways

• 📈 The speaker is sharing their top trade ideas for the upcoming week, with a focus on potential trade setups, entry, and exit strategies.
• 📉 One idea on the watchlist is Luna, where the speaker expects a potential pullback due to an extended price action and nearing exhaustion of shorts.
• 🧐 The plan for Luna involves looking for a price break above Friday’s high, with specific entry points and targets based on price action and volume signals.
• 📊 The speaker is also tracking SMMT, looking for a continuation after a pullback, with an ideal setup around breaking Friday’s high and targeting higher price levels.
• 💹 Nvidia is highlighted as a great stock with a tightening range, providing a potential opportunity for a breakout trade above the 50-day SMA.
• 🏦 The speaker is keeping an eye on Alphabet/Google for a pullback and consolidation, aiming for a potential position after the stock resets near its 5-day moving average.
• 📉 The biotech sector, represented by XBI, is of interest due to its sensitivity to interest rates, with a focus on breaking through key resistance levels.
• 💼 The speaker also mentions shorting opportunities in smaller stocks like Leafly and GX, with specific entry and exit strategies based on price action and volume patterns.
• 💻 The speaker emphasizes that elite traders at their firm work intensively to develop trading skills and achieve success, contradicting the popular notion of quick and easy trading profits.
• 💡 The speaker invites ambitious traders to participate in an online presentation, offering an opportunity to join their proprietary trading firm and trade using firm capital without risking personal funds.

Q & A

What is the primary purpose of this update?

The purpose of the update is to share several top trade ideas for the upcoming week, including the reasoning behind the ideas, ideal entry and exit points, and target price ranges.

What is the first trade idea mentioned?

The first trade idea is focused on Luna, where the trader is looking for a measured pullback after Luna's price surged over 100% since early August. The idea is to anticipate a momentum shift as shorts get exhausted and the price reaches extreme levels.

Why does the trader disagree with the initial setup on Luna?

The trader believes that while the price had moved significantly, it hadn't yet extended far enough to justify a pullback being the most likely outcome. They felt that the bearish sentiment wasn't extreme enough at that point.

What is the plan for trading Luna?

The plan involves waiting for the price to break above Friday's high, signaling that shorts have hit their breaking point. Once this happens, the trader would look for an outlier volume spike followed by a downside move, and target support levels at 8 and 6.

What is the trader's idea for trading SMMT?

For SMMT, the trader is looking for either a break above the 5-day moving average for continued momentum or a quick washout below 24, followed by a reclaim of that level. The target is an ATR move near 28 and potentially up to 30.

What is the strategy for trading Nvidia?

The strategy for Nvidia involves waiting for the price to break out of its tightening range, which is currently near its 50-day SMA. The trader plans to go long if there's a breakout above 120 with a stop below the breakout level, targeting 125 as the end-game profit level.

What large-cap stocks are mentioned as potential opportunities?

The trader mentions MU and Google (Alphabet) as large-cap stocks worth watching. Both are showing momentum shifts, with Google continuing to offer pullback and consolidation opportunities for future trades.

Why is XBI considered a focus for trading?

XBI is a focus because it is sensitive to interest rates, and the trader sees potential for a strong move due to its multi-year consolidation and the recent 50-basis-point rate cut.

What is the plan for shorting small-cap stocks like Leafly and GXAAI?

For small-cap stocks like Leafly and GXAAI, the plan is to look for potential shorting opportunities if there are pops in the price. The trader is looking to short these stocks if they push towards resistance levels and fail, targeting a move back down towards lower levels.

What is the main takeaway from the trader’s mindset and approach?

The trader emphasizes the importance of flexibility and adaptability, acknowledging that new opportunities can arise daily. They prioritize setups with strong expectancy and are continually adjusting their watchlist based on changing market conditions.