Unlocked: 5 Trade Ideas for Monday: Peabody Energy, Century Aluminum, Carvana, GlobalFoundries and Wayfair
5 Trade ideas usually excerpted from the detailed analysis and plan for premium subscribers. This week sharing the full plan with Premium Content in Bold:
Peabody Energy, $BTU, comes into the week approaching resistance. It has a RSI in the bullish zone with the MACD positive. Look for a break over resistance to participate. There is resistance at 35 and then back to 2018 at 38 and 41 before 43.75 and 47. Support lower is at 32.50 and 31. Short interest is high at 14.8%. Enter long on a move over 35 with a stop at 33.50. As it moves over 35.75 move the stop to break even and then to a $1.50 trailing stop over 36.50. As an options trade consider the January 30 Expiry 35 Calls (offered at $1.78 late Friday) and trade them like the stock trade (using the stock price as a trigger, stop and target).
Century Aluminum, $CENX, comes into the week at resistance. It has a RSI in the bullish zone with the MACD positive. Look for a push over resistance to participate. There is no resistance above Friday’s high at 45.75 until back in 2008. It is found then at 50.50 and 57 before 61.50. Support lower is at 44 and 41. Short interest is high at 13.7%. Enter long on a move over 45.75 with a stop at 44. As it moves over 46.75 move the stop to break even and then to a $2 trailing stop over 47.75. As an options trade consider the February 46 Calls ($4.10) which span the February 18 earnings report.
Carvana, $CVNA, comes into the week approaching resistance. It has a RSI in the bullish zone with the MACD curling to cross up and positive. Look for a push through resistance to participate. There is no resistance above 475. Support lower is at 447 and 431. Short interest is high at 10.8%. Enter long on a move over 475 with a stop at 455. As it moves over 485 move the stop to break even and then to a $20 trailing stop over 495. As an options trade consider the January 30 Expiry 475 Calls ($17.40). Sell the January 30 Expiry 500 Calls ($7.80) to lower the cost.
GlobalFoundries, $GFS, comes into the week approaching resistance. It has a RSI in the bullish zone and a MACD positive. Look for a push over resistance to participate. There is resistance at 40.50 and 42 then 43.50 and 44.75 before 46.50 and 47.25. Support lower is at 39 and 37.50. Short interest is high at 15.4%. Enter long on a move over 40.50 with a stop at 39. As it moves over 41.25 move the stop to break even and then to a $1.50 trailing stop over 42. As an options trade consider the February 40 Calls ($2.50) which span the February 11 reporting date.
Wayfair, $W, comes into the week breaking resistance. It has a RSI in the bullish zone with the MACD positive. Look for continuation to participate. There is resistance above back from 2022 at 117 and 128 then 141 and 152 before 163. Support lower is found at 114 and 107.50. Short interest is high at 16.7%. Enter long on a move over 117.50 with a stop at 113.50. As it moves over 119.50 move the stop to break even and then to a $4 trailing stop over 121.50. As an options trade consider the January 30 Expiry. 118 Calls ($5.60).
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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the first full week of 2026 in the book, saw equity markets show renewed strength with several sectors and indexes at all-time highs.
Elsewhere, look for Gold to continue the uptrend and more all-time highs while Crude Oil drifts higher at the bottom of consolidation. The US Dollar Index continues the short term move to the upside in consolidation while US Treasuries continue to hold at 4 month lows in consolidation and looking better lower. The Shanghai Composite looks to continue the in the uptrend at 10 year highs after breaking consolidation while Emerging Markets test the 2021 all-time high in their uptrend.
The Volatility Index looks to continue to hold low in the normal range making it easier for equities to move higher. The charts of the SPY, the IWM and the QQQ remain strong on the longer timeframe with the IWM leading. On the shorter timeframe the SPY, and the IWM are also strong, forging new all-time highs. The QQQ is bearing the brunt of rotation as it struggles to break higher. Use this information as you prepare for the coming week and trad’em well.
