What’s up traders! Today, we’re diving deep into the U.S. stock market, looking at how to navigate both day trading and swing trading in this dynamic environment. In this choppy market with limited intraday movement, but this kind of consolidation is a bullish indicator. In this blog post, we’ll discuss key levels to watch, strategies to dominate the upcoming week, and highlight the best stocks to trade for tomorrow and beyond. Even when you have a choppy market like today you want to focus on individual stocks that have the best charts or pr’s out there.
Market Overview: The QQQs and SPY
If you’re watching the QQQs, you’ll notice a very tight range forming. There wasn’t much movement today—only about $2, which is rare for the QQQs. But this kind of consolidation after an overbought period is a good sign. As the QQQs flirt with breakout levels, the tighter the range gets, the more explosive the move will be. The same applies to SPY, which has broken out to all-time highs. Now we’re just waiting for some sellers and buyers to churn before we get the next big move.
IWM’s Pullback
The IWM also had an orderly pullback. After 6 straight up days, we’re finally seeing a slight dip—about 0.5%. This type of pullback is healthy, and it’s setting up the IWM for another run once we work off this overbought condition.
Swing Trading Tips: Keep Your Accounts Separate
One key tip for those managing both day trades and swing trades: don’t mix them in the same account. If you’re trading with less than $100k, keeping swing and day trades separate will help avoid cross-currents in your results. Treat day trading as your income generator and swing trading as your wealth builder.
Top Watch List Stocks
Let’s talk about some key stocks to watch for both day and swing trading setups:
- Lowe’s (LOW): This stock is setting up for a flat top breakout, a multi-year high. With the Fed cutting rates and hurricane season approaching, Lowe’s looks like a strong buy, especially if it breaks above key levels.
- Costco (COST): Another retail giant setting up for a breakout. Watch for a break of 920 and consider calls around the 940 level for a potential big move.
- CEG: After a massive run-up, CEG had a reversal candle today. Watch for a green-to-red move and potential short play.
- Tesla (TSLA): Inside day setup with a potential breakout coming. We longed this stock on Friday, and we’re watching it for more opportunities.
Semiconductor Strength
The semiconductor sector is coiled up for a move. Stocks like MU, ARM, and AVGO are showing strong patterns. MU has a beautiful double bottom and is ready to break out of the bone zone. Meanwhile, ARM and AVGO are forming tight flags, ready for a big move.
Conclusion
This market is filled with opportunities for both day and swing traders. Make sure to keep a close eye on the watch list, stay patient, and separate your strategies for maximum success.
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