Top Swing Trade Strategy with Exact Entry and Exits

Summary

In this trading video, the speaker outlines their top stock trading ideas for the week, focusing on GameStop (GME) and its recent price movements. They discuss their strategy for shorting GME based on key technical levels and market behavior. The speaker also briefly mentions other potential trades, including LR and ALCC, and emphasizes the importance of patience and selectivity in trading. They invite viewers to share their own trading ideas and promote an online presentation for aspiring traders to learn how to join SMB, a trading firm, and potentially trade with the firm's capital.

Takeaways

• 📈 The trader focuses on individual stock ideas rather than the overall market direction due to the market's light volume and lack of conviction in high beta continuation.
• 🎯 The trader's top idea for the upcoming week is GameStop (GME), which has been a recurring theme and has shown consistent behavior around key price levels.
• 📉 The trader is looking for a short opportunity in GME after a failed breakout, aiming to enter on a pop into the 1820s or up to 19, considering this as a potential failure and supply zone.
• 💼 The trader plans to take half the position off at 17, the support level from the previous Friday, and then trail the stop for a move down to 15 or lower.
• 🚫 If GME reclaims the 2-day vwap and shows a higher low, the trader will not short the stock, indicating a change in strategy based on market behavior.
• 🔍 The trader is monitoring other ideas such as Google, Apple, Microsoft, and smaller cap stocks for potential short opportunities, especially with events like the OpenAI conference.
• 📊 The trader mentions LR (a stock) as a potential short opportunity if it fails to move higher after a nice move on Friday, aiming for a short at the failure zone near $3.
• 🎫 The trader discusses a ticket change for ALCC to OKL, highlighting the importance of reacting to market news and changes quickly.
• 📉 The trader emphasizes the importance of patience and selectivity in the current market, only becoming aggressive when high-conviction opportunities present themselves.
• 💼 The trader invites viewers to share their watch lists and strategies, fostering a community discussion and learning environment.

Q & A

What are the speaker's top ideas for the upcoming week?

The speaker's top idea for the upcoming week is to focus on GameStop (GME). They plan to short GME if it fails to break higher after a move into the two-day VWAP and 19, anticipating a drop back to 15.

Why is the speaker cautious about the overall market?

The speaker is cautious because the overall market is trending higher on increasingly light volume, making it difficult to have conviction in high-beta continuation momentum trades.

What strategy does the speaker plan to use for GME?

The speaker plans to short GME if it moves into the two-day VWAP (around 18.20-19) and fails to break higher. They intend to take partial profits around 17 and trail the position down to 15 if the downtrend continues.

What would invalidate the speaker's short thesis on GME?

The speaker would abandon their short strategy if GME reclaims the two-day VWAP and consolidates above 19, as this would indicate potential strength.

Which other stocks or opportunities is the speaker monitoring?

The speaker is monitoring stocks like Google, Apple, and Microsoft, especially with the upcoming OpenAI conference. They are also watching small-cap names for failed follow-through shorts, including LR and OKL.

What is the speaker’s view on LR for the upcoming week?

The speaker is looking for a potential short in LR if there is a failed move into $3. They expect a short squeeze to fade and are targeting a move back down to $2.

What recent event related to OKL is the speaker focused on?

The speaker is focused on a recent ticket change in OKL (formerly ALCC) and is watching for a push towards its two-day VWAP at $10-$11 for a potential short.

Why is the speaker light on trading ideas for the week?

The speaker is light on ideas because they are being patient, waiting for high-quality setups that align with their strategy. They believe the market is slowing down and want to remain selective.

What does the speaker recommend for traders in the current market environment?

The speaker advises traders to remain patient and selective, only putting full effort into trades when an 'A+' setup presents itself.

What opportunity is SMB Capital offering to aspiring traders?

SMB Capital is offering the opportunity to become an in-house or remote trader, using firm capital without risking personal funds. They are looking for ambitious and determined individuals and provide training and coaching for developing profitable traders.