Bear Market Bounce or Bull Trap? My Trading Strategy for This Week

The QQQs just hit a key resistance zone, and traders everywhere are wondering: are we bottoming, or just grinding out another trap?

Let’s break it down.

The Market Setup

We’re sitting right at the 20-day moving average on the QQQs. Under the 50, under the 200. This ain’t a breakout environment—it’s a range-bound grinder with cross-currents and chop. Not exactly where swing trades go to shine.

In fact, the IWM still hasn’t even started a recovery—small caps remain in deep bear territory.

This Is Not a Swing Trader’s Market

You don’t need to force swing trades right now. The setups just aren’t there. We need more trend, more liquidity, and more speculative money coming back in before you start betting on multi-day holds.

If you’re wondering why your scans aren’t returning hot momentum plays—it’s because they’re not supposed to in a market like this.

So What Am I Watching?

• $PLTR – Two inside days in a row. First pullback to the 9 EMA got bought, but any breakout needs confirmation.
• $MSTR – Coiling wedge pattern. If Bitcoin gets moving, this rides.
• $HIMS – Midcap holding trend. Watching for any surge in small cap participation.
• $CAVA – Tightening range. A clean breakout through 92 has juice.
• $Bull – Recent IPO. Wild mover. Keeping it on radar after a huge day and 36M shares traded.

What’s Next?

We’re heading into earnings season, and that’s where the real clues come in.

If strong earnings gaps get faded, that tells you big money is using strength as liquidity.
If gaps get bought and held, that’s a sign we might be building something constructive.

Stay nimble. Don’t chase. Wait for trends to form and trade the range until they do.

swing traders! Check out the latest blog post by Paul Singh  on his top 50 swing trading tips!

Want to learn how to trade IPO breakouts and low float momentum the right way?
Check out our 60-Day Bootcamp:
https://bullsonwallstreet.com/live-60-day-bootcamp/

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About

Kunal Desai the CEO of bullsonwallstreet.com has owned this since 2008 and been a professional trader for nearly 20 years! He has the worlds longest running live trading course and coined the term Trading Bootcamp. He is currently on his 75th 60 day trading bootcamp and still going strong!

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