Check In: DKNG, MGM, PLTR, & TTD Trades
A look at where we are at on these trades and what to expect next week.
If you missed out on the trade ideas posted last week it is ok, there is still time to enter for a couple of them.
The original trade ideas, complete with options contracts to consider, can be found here.
I wanted to follow up on these trades because each one is still very interesting and worth keeping an eye on.
Later today I will post new trade ideas in the semiconductor space for paid subscribers.
For $8 per month these fine traders get multiple trade ideas every week. Triggers for entry, price targets, stop loss levels, and options contracts all included.
DKNG
Friday made a higher low for DKNG which was after a bounce right off of both the 50-day simple moving average (SMA) and anchored volume weighted average price (AVWAP) from the October lows.
The focus is on holding the 34.29 support line, allowing for entry between 34.30 and 36.00. Clear resistance above at 39.06 remains the profit taking target.
I am still bullish as long as support holds and maintain selling covered calls at the $40 strike as a viable way to bring in additional cash as shares consolidate.
MGM
This one is both interesting and frustrating. If you made profits on MGM last week you had to have a quality entry and exit to get the job done.
Shares did not get a very strong push through the 44.68 resistance level and closed at 44.69 which sets up next week fairly nicely.
The bull flag that is forming needs to break higher and is now looking to get above the 45.58 high from last week.
I like the opportunity here to buy shares or options below 45 as long as last week’s lows hold.
PLTR
Similar to the chart for DraftKings, shares of PLTR are retesting support.
The AVWAP from the July highs is providing nice support with another retest Friday to close out the week.
A continued decline to start 2024 would likely test the AVWAP from the May lows, which would come in around 15.80.
That said, I like the odds for a bounce here and when shares get above 17.75 I will be ready to go long.
TTD (Short)
The only short trade posted last week, TTD is already moving lower.
For the record, I am also short XLE which is also starting to drop. These are the only two shorts I have a lot of conviction in at the moment.
I mentioned the clear rejection for TTD at both resistance and the downtrend line.
Now shares sit just above the 50-day SMA and if that breaks, there are no stops until 64.79.
If shares bounce a bit here it might be another opportunity to short. I would watch for resistance near 75.50, at which point I like considering puts again.
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Ok, I will be back with those semiconductor trades a little later today. I am still fine tuning those trades for you.
Let me know if you have any questions about any of this and thank you again for supporting A Trader’s Education!
Have a great rest of your day and a happy new year!
-Nate
This service is for general informational and educational purposes only and is not intended to constitute legal, tax, accounting or investment advice. These are my opinions and observations only. I am not a financial advisor.