03/15/2024

I'm very bullish into next week with the general market. But a lot of institutions are trying to be short, and I plan to SMOKE THE SHORTS next week.

Earlier this week, I made a compelling call for a rotation into communications and energy sectors, and boy, did they deliver right on cue.

Energy was the main course while communications garnished our perfect plate. Both sectors are holding steady and I expect more upside from them. 

And hey, if you're wondering what particular stocks are cooking in my kitchen, it's still the holy grail quartet: XLE, SWN, XOM, and DVN. These all still have plenty of bullish upside.

Moving forward, my enthusiasm remains bullish in energy, especially in the broader market. But in the face of institutions trying to short, I'm rallying my Closers to absolutely smoke the shorts next week.

Speaking of shorts, I'm keeping a keen eye on stocks showing signs of weakness. SNOW, AFRM, and BA are on my bearish radar. They are exhibiting heavy volume supply to the upside which pushes them lower. 

While it’s possible these stocks could break supply, 99% of the time they need a gap higher or a huge engulfing candle. 

Here's an example of heavy supply and bearish follow through in AFRM. 

I always use the volume profile to consider whether to go long or short a trade. If I want to go long a stock, and see heavy volume supply above it, I attempt to talk myself out of it. Why go long on something when there is such heavy resistance?

You’ve gotta play the devil’s advocate against your own plans sometimes — just to make sure the technicals are on your side.

We have our wild list of shorts lined up for next week…

But you could join us at 3 pm ET today if you want to hit the ground running.

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Here are some of yesterday’s hot closes:

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Can’t wait to see you soon!

Always be closing,

Olivia Voz and Mark Sebastian