3 hours ago
2
Traders,
Following on from Thursday’s IA meeting, Friday’s action was another great example of the opportunities currently available in the market, and of the importance of recognizing the two-way tape and how conditions continue to be rewarding for move2move-style trading.
With that being said, though, several tech-related names have shown impressive relative strength, so I’ll include some bigger picture ideas as well.
Momentum Trading / Flexible Approach to SOXL / Memory: As I discussed on Thursday, if we were to get an extension into declining moving averages, I’d be more inclined to short intraday. That’s what we saw on Friday. SOXL extended into the declining 10-day SMA and came under immense selling pressure after the opening drive. That was the standout opportunity on Friday for me.
Going forward, it will continue to be much of the same approach. Specifically, I want to fade (long or short) any significant extension while the current structure remains. So, if SOXL (or many of the other related names like MU, SNDK, etc.) retests Friday’s supply zones and stalls, I would be inclined toward an intraday short. Alternatively, if ...
English (US)