The market is closed on Friday, June 19, for Juneteenth.
Which means the big moves that usually come on Friday are here TODAY…
And I’m watching 3 stocks.
Short trading weeks can inspire extra volatility because traders have fewer days to squeeze out profits.
And when we have a long weekend (Friday, Saturday, and Sunday), the volatility can continue into Monday.
There are huge trade setups on the horizon.
Don’t miss this opportunity to pad your account. We only see a few short trading weeks a year.
Here’s how to play it…
Friday Momentum on Thursday
On Fridays, there’s a higher chance that we see bullish momentum into the market close.
The main reason is due to short sellers.
When the market is closed on Saturday and Sunday, a bullish catalyst could come out that builds hype and spikes a stock on Monday. That works against the short-selling thesis.
As a result, short sellers will close their positions on Friday afternoon, rather than waiting through a stressful weekend, just in case a catalyst drops that they didn’t see coming.
Why get out? Why not wait until Monday? Because the stakes are higher for short sellers…
There’s theoretically no limit to the money a short seller can lose.
In a long-biased strategy, when someone buys a share worth $50, the largest possible loss is 100% if the stock goes to $0. But when traders short a $50 stock, and the price spikes higher than $100, suddenly they’re losing more money than they put in.
Short sellers would rather cut the position on Friday and get back in on Monday, instead of waiting two days with their hands tied behind their backs at the mercy of the market.
Now think about this weekend…
When the market is closed on Friday, it increases the odds that a bullish catalyst could hit the market and spike stocks into Monday. Which means there are more short sellers looking to buy back shares and get out on Thursday.
The Friday bull momentum moves to Thursday, and it grows stronger.
Momentum into Monday
It’s not just Thursday…
After three long days of inactivity, on Monday morning, traders are gnawing at the bit to trade a hot stock.
Thursday’s runners could be fresh in their minds. Maybe they missed those moves, and now the FOMO is hitting hard.
They’re ready to try their hand and make some cash.
Pay attention today.
And make sure to set your alarm for Monday morning.
We’ve got two days of golden volatility to help pad our wallets.
My 3 Stocks
The three stocks I’m watching are…
- Intel Corporation (NASDAQ: INTC)
- NVIDIA Corporation (NASDAQ: NVDA)
- Space Exploration Technologies Corp. (NASDAQ: SPCX)
INTC is up 175% in three months.
It’s a chip giant that the market left for dead back in March. Fast forward to today, and the price has tripled. It’s sitting around $120 per share this week, knocking on the same ceiling it tested in May.
INTC keeps stalling just under the breakout level. Every push gets sold into. And it’s likely due to a swing in the market spotlight…
NVDA tells another part of the same story.
The stock topped above $220 in early May, then rolled over. It posted lower highs the whole way down. And this week it’s parked around $206, pressed right against the $200 floor.
$200 is the line in the sand. Hold it, and the bulls get a bounce to work with. Lose it, and the next stop could be $180.
This is the second AI leader getting hit. The momentum that carried it all spring has gone quiet, and the chart is asking a simple question: Does $200 hold, or does it crack?
Here’s the missing puzzle piece…
SpaceX is sucking the life out of the room. The stock is up 20% in four days after the largest IPO in history.
This is where all the money’s going.
SPCX is pulling speculative cash out of every corner of the market, including the old leaders on the charts above.
And the catalyst isn’t over yet…
Roughly 15 days after listing, SPCX is set to join the Nasdaq-100. When it does, every QQQ fund on earth has to buy it.
Watch the Rotation
Put it all together…
- INTC is stretched to the moon.
- NVDA is hanging on the $200 support line.
- SPCX is draining the room and pulling money away from big AI names.
These three stocks are the leading indicators for the week ahead. Pay attention to the direction of the cash flow between them.
There will be opportunities to trade due to the amount of money changing hands between these assets.
Not to mention the short trading week and long weekend into Monday…
The volatility is coming whether you’re ready or not.
Here’s my advice: be ready.
Stay Street Smart,
Jeff Zananiri
*Past performance does not indicate future results, Not typical.
