Short Week Syndrome, Plus MARA and HOOD
Why traders should ease into a short week and two new trade ideas.
After a long weekend you can expect a lot of anxious traders at the opening bell on Tuesday. You might be one of them!
Count me among the many that can’t wait to get back to trading. The long weekend allows you to do more research, listen to more podcasts, and take in more trade ideas from amazing newsletters.
We are ready to trade!
But markets have a way of punishing traders that jump ahead, traders that aren’t patient, and traders that don’t stick to their plan.
So my advice this week is to first, check out the trade ideas for MARA and HOOD because they are very clean.
Second, take it easy at the start of the week. I’m not even suggesting all of Tuesday or the first half. I’m saying, take 30-60 minutes to watch the markets and your tickers before jumping in.
Yes, this might cost you some upside. It is more likely to save you from needing to cut trades and take losses.
Get a sense of volume and trend. If both are meaningful, taking a quality trade becomes clear pretty quickly.
If markets are choppy and your watchlist is bouncing all over the place, you may want to trade a smaller amount or not at all.
The hardest thing for a trader to do is do nothing at all. That is a fact.
Keep this in mind and at least give yourself time to observe and gain additional information before trading.
I think we might be setting up for big moves higher and SPY gave us hints of why last week.
Despite the red candles on Thursday and Friday, we had higher intraday highs every day of last week. That’s really nice to see.
Add in the long bottom wick Thursday and another bottom wick Friday and I like the potential for the coming week.
The long bottom wicks indicate buyers stepping in as soon as selling took place, pushing to close higher. A bullish tendency.
And I think QQQ is targeting its recent high of 412.92 which could happen sooner than you might expect.
All of this to say, I have a bullish lean which is definitely more enjoyable.
Let’s see how it plays out and how MARA and HOOD react here at key levels.
On to this week’s trade ideas!
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