I am excited to share some brand-new ideas with you today that may trigger substantial directional moves in the course of next week. As always, I will, of course, also provide you with my exact trade plans, including both entry and exit targets.
Last week, the market continued its strong upside movement, reaching new all-time highs on Friday. While it may seem that we’re overbought in the short term, I’m not looking to call a top or anticipate a major pullback just yet. Instead, my focus will remain on what’s working—namely, breakouts and momentum continuation plays in stocks.
Let’s dive into my first idea for the week: SNOW (Snowflake).
Trade Plan for SNOW:
SNOW really popped this past Friday in big volume adding the kind of gravitas to that move, so much so that its upside still could carry some from upcoming earnings due at the end of the month.
Still, just know that with SNOW sporting an ATR of 7.59, those bigger gains may bring even higher risk and size those positions back.
Trade Plan
- Entry: I will look for a pullback to the two-day VWAP, which should be near $225. Once we have a confirmed higher low, I will go long.
- Stop: My stop will be near $210, where we had the breakout intraday and a significant level on the daily chart.
- Targets: The first target is $227, a 1-ATR move above Friday’s high. I will get out of most of my position here. After that, I’ll trail my stop using the 15-minute chart, adjusting for higher lows and higher highs. The final target is around $230-235, and I’ll aim for a 3-day hold.
Trade Plan for APP (AppLovin):
AppLovin (APP) has shown promising signs recently, particularly with a solid bounce off converging moving averages on Friday. With earnings on February 14th, the stock is consolidating within a wide range. It’s important to adjust position size given the stock’s ATR of 2.05 and beta of 1.69.
Here’s the trade plan:
Trade Plan
- Entry: I’ll wait for a pullback to the two-day VWAP near mid $44s, looking for a higher low confirmation.
- Stop: Initial stop will be placed near $40 (Friday’s low), allowing the stock to breathe.
- Targets: First target is $50. Subsequent I’ll trail my stop on a 15-minute chart, scaling out on higher highs.
Both of these setups are expected to have a maximum hold of 3 days. I’ll be scaling out intraday based on price action and adjusting my stop accordingly.
Other Trade Ideas for the Week
While SNOW and APP are my main focuses, I do have a few back-burner ideas that I am watching for potential moves.
- NFLX: After a strong earnings gap, Netflix is consolidating and could break above $570 for continuation if volume supports the move.
- MARA (Marathon Digital Holdings): MARA has had a solid bounce from the previous setup and is consolidating near key moving averages. A push above $19 could lead to a move towards $20-$22.
- GS (Goldman Sachs): Goldman Sachs is in a significant consolidation on the daily chart. I’m setting alerts near resistance levels to catch a potential breakout. This could be more of a multi-week hold setup.
Conclusion
I’m focused on breakout continuation plays and momentum setups for the upcoming week. While there are numerous other charts setting up, these are the main ideas I’m prioritizing. I’ll continue to monitor intraday movements for potential opportunities to scale in or out of positions.
If you have any stocks you think I should be analyzing, share them in the comments. Let’s discuss your thoughts and adjustments to your strategies in this strong market environment.