Big rebound out of the market to end the week after finally breaking out of the extremely tight ranges and giving us some action. We got a dip Thursday that was promptly bought up as bulls began a big move Friday to close out the week. The tight trading range became a very important area for the short term action of the market. If we broke it down harshly we could expect stocks to be under pressure as it would likely be testing the bottom end of the range at support. But the fact the market was able to resolve to the upside, especially after the dip (trapping some shorts and shaking out some longs), is a very good sign for bulls. The dip being bought created the momentum to the upside and all indications should be that we look for a continuation of that move this week.
It's still an extremely selective market. The more I concentrate my capital into a few of my favorite ideas, the better my account does. The more I try to be spread wide in a bunch of different names, the more I rack up losses that take away from the big gainers PnL. So, on a continuous hunt for the best setups out there and to concentrate into those stocks rather than have 20 names on.
Earnings This Week
Click the above picture for a full list of the companies reporting this week
*MAKE SURE YOU KNOW WHEN STOCKS
YOU'RE TRADING HAVE EARNINGS*
Where the bunnies at? Playboy PLBY is setting up like a pinup on the daily for another run at all time highs. This first began gaining traction as an NFT play which caused the first run up from the teens all the way to 63 bucks. Ever since, it has consolidated that move in the form of a 4 week wedge. The fact that it tickled 48 resistance on strong buying earlier this week, while forming an inside week (on greater volume) clues me in to this one being ready. Full disclosure I've been buying this one up Thursday/Friday but definitely still believe this is the best looking chart heading into the week. Want to see an influx of volume through 48 for the breakout entry and would like to see the volume hit 3.5 - 4 million on the breakout session.
It's such a wide name which makes the risk a bit more tricky. True support is down at 40 bucks, but if buying this one through 48, it's a tough risk reward to give it 16% risk. So right now on a breakout entry of 48 I would use a stop below Friday's low at 43.