I have two setups this week for all of you: one of them is an energy name breakout and the other is a play on a crypto rally which I think we get here very soon.
The moves last week were pretty bad and this market is in a limbo mode this week with some key levels that need to test to see the overall direction and instead of trying to participate in predicting it I am just going to watch which is not against the rules contrary to popular belief.
You can do nothing sometimes until the setups are clear and right now there are not too many that stick out to me and given that most people were still buying long calls at these market highs they were flushed out last week into OPEX.
Dan talked about this in one of the weekly stock market articles a few weeks back and then again over this weekend in another post and I can tell you that I agree with what he said about this and think that retail are going to just do the same thing: keep trying to buy calls on these same names.
Last week I talked about the $SPY ( ▲ 1.0% ) and what might happen if $NVDA ( ▼ 0.97% ) rolled over and you can read that here because it was dead on and those same call buying that flipped to put buying probably aided in that.
So, instead of being a NPC as Dan likes to say and trying to do what has not been working I have two ideas this week that are not at all correlated to this or the SP500.
It is a short-trading week with Thursday closed and Friday a half day so I don’t plan to trade too much but these names are worth watching be it they trigger this week, or next because they are really solid price-action setups that I like.
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