Weekend Wall Street #4: Top Trade Ideas for 8/22-8/26
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We have a great week coming up! This week has a lot of great setups in both small and large caps going into it. Let’s look at the economic calendar first:
The main event to watch macro wise is the Fed’s Jerome Powell speaking on Friday at Jackson Hole, so the tape on Thursday is going to be choppy most likely as traders wait in anticipation.
Here are some catalysts for the market tomorrow:
Lots of new members here on the Substack, so let me recap how I write out my personal ideas:
Long = going up
Short = going down
PT = Price Target
SL = Stop Loss (how far you let a stock go down before you sell and cut losses)
Once again, I'm not a financial advisor so these are not recommendations to buy or sell any security, just my personal journal of trades I’m watching. That being said, let’s take a look at some setups!
1. Long REV 0.00%↑ . This is my top trade idea of this week here. Let me show you why. First the chart is primed here, lots of accumulation at these levels on the daily. It likes rejecting that 10 area, but the more times it test it, when it finally breaks, the stronger the move will be. Not only is the chart nice, but also this has a short squeeze angle to it. S3 reports 32% short interest and Ortex has a 224% cost to borrow. When a stock has a high short interest and cost to borrow it's one to watch. Not only that, it's number 2 on the Fintel short squeeze list as well with a squeeze score of 98.32/100. Lastly, there was call flow on Friday for the 19 strike which implies over 100% upside. PT 12 SL 7.50.
2. Long SKYT 0.00%↑ . This is another name that's under the radar but I think can have a good week. Its similar to REV 0.00%↑ in the fact that it has a short squeeze + options and technical element. Nice flag from the volume pop post earnings here. It was given a short squeeze buy rating on Ortex on the 17th, price targets were raised this weekend, but they also filed for a shelf offering so I would only daytrade this name in case they drop an offering. It's also #8 on the Fintel squeeze list. Lastly, there was a Buyer 700 SKYT 0.00%↑ 20C 9/16 @ 1.05 which is pretty good for a name that doesn't get much flow. PT 25 SL 17.
3. Short MARA 0.00%↑ . I think Bitcoin is pretty topped out for this cycle here, especially with the chart looking so weak here. Rising wedge breakdown and the MACD cross downards really ties this short theory together. One more thing I like to look at before trading Bitcoin names is the BITO 0.00%↑ Bitcoin ETF flow to see what options traders are expecting and that is extremely bearish with almost 10 puts being traded for every call. PT 8.50 SL 15.
4. Long BOIL 0.00%↑ . Natural gas is in season right now with the hurricaines and other events, so one chart I always like to look at is the BOIL 0.00%↑ Bloomberg 3X Leveraged Natural gas ETF. This inverse head and shoulders patter is very powerful for breakouts here. Huge call flow as well with a trader putting almost $1 million on calls one month out. PT 150 SL 100.
The following trade ideas, which include a penny stock under $1, a squeeze idea under $10, and a large cap options swing idea, are all for my paid Substack members. If you enjoy my writing and trades, please consider becoming a paid member.