New Year, New All-Time Highs? Trading TSLA, COST, PYPL & More

Let's start the new year off on the right foot!

Friday was nothing special. In fact, most of last week was not very special (short of Monday). 

In years past, I always struggled with knowing when to take my foot off the gas. I think we did a really good job last month of using the brake and the gas when each were necessary. 

I’m hopeful that we can continue to do that going forward too! It saves our trading capital and more importantly, lets us replenish the mental capital as well. 

As we shift into a new year, we have an opportunity to wipe out last year’s poor trades. The key is learning from those poor trades so we don’t make the same mistakes we did last year. 

Game Plan

We have a decent pre-market push on Monday morning, with the S&P futures, SPY and QQQ all up about 60 basis points. How the market manages that gap-up may say a lot about this week. 

In an ideal world, they’ll sell the open with a mild dip and give bulls a chance to get long before pushing higher. However, the market could give a damn about “an ideal world.” 

We’ll see what it wants to do after the open and go from there. 

Technical Breakdown 

• NYSE Breadth: 45.5% upside volume

• NASDAQ Breadth: 33.5% upside volume 

S&P 500 — SPY

SPY Daily

On Friday we traded the SPY with a 4-hour chart and had a great dip-buying opportunity as a result. 

I would love a dip down to the 10-day and the prior breakout area near $472 to $473.50. However, depending on how Monday’s gap is handled, we may not see a test of this area until later this week — if it’s tested at all. 

In this scenario, we should at least see a bounce and it would have me on watch for a buying opportunity. On the upside, let’s see how the SPY handles the $478.50 to $479 area. 

Above that and perhaps we can see some continuation higher. 

Individual Stocks — QQQ, TSLA, PYPL, COST, AVGO, ZTS, CSCO

Let’s look at a few names, ranging from daily to monthly setups.