Welcome back, traders! In today’s blog post, we’re diving into the current stock market action, discussing key setups and strategies for both day traders and swing traders. With the market presenting multiple opportunities, we’re about to enter the ‘Goldilocks Zone,’ where both styles of trading can be highly effective. Let’s break down some key moves on SPY, Tesla, and more, and prepare for the profitable setups ahead.

SPY and QQQ Price Action
First up is the overall market sentiment, and it’s looking strong. We saw some consolidation with a 2% pullback on the QQQs, but that light dip is a great sign. SPY broke out to all-time highs and even retested, providing a perfect pullback opportunity for those who missed the initial breakout. After strong market moves like this, the rest days provide fertile ground for traders to jump in with strategic positions. Friday’s zero DTE action on Tesla and others proved that breakout and pullback setups are highly effective in this market.

Tesla’s Explosive Moves
Tesla is once again the darling of traders, with Friday’s breakout providing excellent day trading opportunities. We’ve been watching this stock closely as it develops more consistent patterns. It’s coiling up, and after Friday’s action, it’s primed for another strong move. With an inside day setup on Friday, Tesla’s potential for another breakout looks imminent.

Swing Setups You Don’t Want to Miss
As swing traders, this market is presenting a buffet of opportunities. Stocks like AKO and NRG are offering fantastic setups, with breakout and pullback opportunities developing. We’ve seen strong volume and range breaks on both. AKO, for example, saw 15 million shares traded and closed near its highs on Friday. Meanwhile, NRG’s flat top breakout is primed for a strong move, especially if we get a weak open followed by a red-to-green move.

Sector Focus: Utilities and Nuclear
Another interesting development is the rise of nuclear stocks, with Microsoft’s recent deal breathing life into this sector. We’ve also noticed utilities like CEG and NRG providing strong setups. These might not be the typical fast movers that day traders look for, but swing traders should keep an eye on these for breakout opportunities.

Conclusion
Whether you’re day trading or swing trading, the market is offering setups left and right. With everything from tech stocks to utilities and even nuclear companies seeing movement, there’s something for everyone in this market. Be sure to keep a close watch on the day trading and swing trading watch lists for more potential winners.

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