Good morning, traders…
This isn’t a normal trading week…
Don’t treat it like one.
The market is closed on Friday for Independence Day, which means we only have four trading days this week.
A shortened week might not sound like a big deal, but you need to be prepared for a slightly different trading environment…
I’ve seen four-day trading weeks go two different ways…
Sometimes the volume dries up because people are traveling, lighting fireworks, eating hot dogs, etc.
Other times, with the right catalysts, the limited time frame can kick market momentum into overdrive.
Which category are we getting? Look at what the market did on Monday:
Strong moves in tech pushing the major indexes to new all-time highs, implying this week could be in the second category.
But with less time on the clock, your setup selection matters even more.
Let’s Make These Four Days Count. Here Are A Few Factors To Keep In Mind (And 10 Stocks To Watch) For This Shortened Trading Week…
1. Less Liquidity
When a holiday cuts the week short, it doesn’t just remove a trading day. It changes how participants show up.
You’ll often see a normal pace early in the week, but by Thursday afternoon, volume can dry up.
That doesn’t mean there won’t be trades, it just means price moves can start to drift instead of follow through.
This is especially true in the last hour of the day. If you’re planning to hold a position overnight, know that the exits might not be as clean (and the fills could be weaker than usual).
Stick to contracts from the OMEN Scanner with high open interest and strong daily trading volume.
2. Faster Time Decay
If you’re trading weekly contracts that expire Thursday, time decay is working against you this week.
Every hour matters more. If you’re looking for quick scalps or short-term trades, you need to dial in with your entries.
Know what you want to pay for the contracts beforehand. Wait patiently. Don’t chase until you get the entry you were looking for.
Focus on key support and resistance levels, especially with breakouts and pullbacks. Consider buying slightly in-the-money (ITM) contracts to give yourself more wiggle room.
That little extra cost can make a big difference if a trade goes south with one less day to make decisions.
3. Thinner Volume, More Gains
We saw some really strong opens on Monday, especially in tech. That momentum can offer great setups early in the day.
But it can fade just as easily in the afternoon.
In a shortened week, traders are more likely to take gains fast and reduce exposure before the break.
That means you have to be a little more surgical. I suggest leaning into the first half of the day.
If you see strength in pre-market, those names are good candidates for quick morning day trades with aggressive scaling out.
10 Stocks I’m Watching This Week
Even with the shortened week, momentum is looking very strong right now.
That doesn’t mean you can ignore the three factors I just told you about.
But you shouldn’t get lulled into thinking there’s nothing to trade this week.
On the contrary, here are ten setups I’m watching:
Alphabet Inc. (NASDAQ: GOOGL) saw a powerful end-of-day move on Friday, then gapped higher in the Monday pre-market with heavy call volume. This chart has lagged its tech counterparts for a while and could play catchup here.
Amazon.com Inc. (NASDAQ: AMZN) continues to show strength following a clean breakout. A solid swing trade idea.
Palantir Technologies Inc. (NYSE: PLTR) dropped sharply by 10%, but this stock has a history of volatile pullbacks (and fast recoveries). Watch for the bounce.
SoFi Technologies Inc. (NASDAQ: SOFI) is moving steadily toward the $20 level, with strong call volume showing up on the $17.50 and $18 strikes.
Ross Stores Inc. (NASDAQ: ROST) attracted unusual order flow at the $130 strike, aligning with a potential rounding bottom setup on the chart.
First Solar Inc. (NASDAQ: FSLR) is gapping up following news of solar panel tariffs, with large call volume targeting the July 11 $190 calls.
Riot Platforms Inc. (NASDAQ: RIOT) is forming a double top near the $11 level, with breakout potential on continued crypto momentum.
Hewlett Packard Enterprise Co. (NYSE: HPE) jumped 14% on TikTok-related speculation, with a $1 million call sweep hitting the $20 strike.
Apple Inc. (NASDAQ: AAPL) is consolidating in a tight range, pressing against a key trendline, signaling a possible breakout.
UnitedHealth Group Inc. (NYSE: UNH) is testing its 21 EMA and could trigger a breakout move if it clears the $312 level for the first time in weeks.
Start the back half of the year by following your rules and trusting your process.
Happy trading,
Ben Sturgill
P.S. Since launching my OMEN Scanner, I’ve achieved an 89% win rate with a 72% average gain…
My top 120 trades have all generated 100% or higher. 27 soared above 200%, and 12 exploded beyond 300%…
But my biggest trade yet could be setting up RIGHT NOW.
Join Vince Dowd this THURSDAY, JULY 3 at 2:00 p.m. EST for a LIVE WORKSHOP where he’ll go over our biggest trade ideas in the options market.
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*Past performance does not indicate future results
