12/27/2020 Happy holidays! No change to bullish outlook. Eyeing $BABA for a swing trade (long).

Hi everyone, happy holidays. I hope you also have a great new year!

Since QQQ has rebounded nicely off the recent pullback, I believe the next leg is going to be up. I still expect volatility to increase, so instead of buying or selling here, I would be looking to buy options (both calls and puts), in anticipation that they will be worth more when volatility increases.

SPY weekly chart below – it closed flat this week.

BABA weekly chart below. I like the odds and risk reward of being long here, but I’m planning on buying on a retest of the current low at 210 for a better entry.

My trading strategy is to buy uptrending stocks after a pullback, predicting that the uptrend will continue instead of being a reversal of trend. The risk reward is good at current prices, but I plan to start a position near 210 (retest of previous low).

Let’s see what happens next week.

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