Happy Sunday, Traders

It’s unscratched to say that volatility and uncertainty have returned to the markets, and with that, the range has opened up, making for a pretty solid trading environment. I hope you all were worldly-wise to capitalize on the vast opportunities that were presented this week or, at the very least, were worldly-wise to expand your knowledge and playbooks.

Before I get into this week’s watchlist, I want to go over what I believe is a hair-trigger concept and topic: managing expectations. Traders, yes, the range expanded last week surrounded increasing uncertainty without the FED spoken that rates will likely remain elevated for the foreseeable future. However, in the near term, I will not expect every week to be as fruitful or volatile as the previous week.

It’s important to alimony expectations in trammels considering If I don’t, I can find myself holding positions for too long, overtrading, and going vastly out of sync with the overall market. So, while last week was pretty crazy, I am tightening my focus for this week and putting my baby-sit rails up without many leading stocks have once experienced significant momentum to the downside. The last thing I want to do is ventilator stocks lower and short them deep in the hole.

So, while the majority of my focuses have materialized well since I began doing these watchlists, for the week ahead, I am managing expectations while many charts and the overall market squint to find their footing and shape up once again.

Last week, I had two main focuses: one potential short and flipside long idea. The short idea in PLTR shaped up well and scrutinizingly reached the $13 target. While I am no longer in this position, if the stock remains heavy, virtually $14, I could see it standing lower into the $13 target. The long idea in CGC was invalid from the whence of the week without the stock spoken an offering on Monday and traded lower.

So, with the whilom comments and mentality in mind, let’s go over two main ideas I have on watch for the upcoming week.

AutoNation (NYSE: AN)

My Trade Plan for AN:

*Please note that the prices and other statistics on this page are hypothetical, and do not reflect the impact, if any, of unrepealable market factors such as liquidity, slippage and commissions.

For the last couple of months, shares of AN have consolidated unelevated $160, and in recent weeks, the stock has begun consolidating near the dispersal level.

A surly consolidation has worked unelevated short-term unthriving SMAs, such as the 50-day and 5-day. I like the well-spoken risk: reward setup here, with the $149 zone vicarial as hair-trigger support and the inflection level and the 200-day vicarial as a potential target for the trade.

Therefore, I am looking to get short if the stock can unravel unelevated support and see that level turn into resistance. I will then enter short with a stop whilom the upper of the day if there is a well-spoken lower upper or $152, as that zone make-believe as resistance on Friday.

As mentioned, my target for this short swing would be in the zone of $140, a previous breakout level and near the 200-day moving average. I would have a 3 – 5 day hold timeframe for this position.

META Platforms (NASDAQ: META)

My Trade Plan for META:

*Please note that the prices and other statistics on this page are hypothetical, and do not reflect the impact, if any, of unrepealable market factors such as liquidity, slippage and commissions.

While META displayed impressive relative strength this weak compared to the sector and overall market, it’s not out of the woods yet as a lower upper looks to have confirmed on a higher time frame.

I see two potential swing trades for META in the upcoming week. Both depend on a wipe unravel of support or resistance.

The long idea: if META can unravel whilom and hold whilom Friday’s high, with sustained volume and relative strength to the overall market, I will squint to go long, risking the day low. My first target would be potential resistance near $312, where I would squint to take off half of my position. The second target would be between $315 and $320, where I would use my discretion to tropical the position. That will depend on what the overall market is doing and if the volume and short-term trend in META remain intact.

The short idea: If the market remains heavy and META takes out last week’s low, virtually $293, I will go short for a momentum swing trade, targeting $280. My stop would moreover be tight, risking the day’s high, and would have an expected trade timeframe of well-nigh three days here.

Important Disclosures