The indexes hit resistance and fell swiftly on Friday, but so far, it’s just been a one day event. COVID-19 stocks remain hot, and I’ve got my eye on several earnings reports this week, along with key runs into earnings later this month. Let’s check out PTON, MRNA, TTWO, ZS, COST, WMT, BYND, and more.
It’s not even across the board as far as bullish structure in the indices. That said, the NQ is by far the best for a potential buy and that means the XLY, AMZN, and DG could go along for the ride.
We run the gambit today in this update. Which markets am I bullish and why? Energies are still in the spotlight; which am I open to shorting? As well as prepping for tomorrow’s session for daytraders and my guidelines.
Tonight we’re looking at a couple of companion stocks, ATVI and EA. One has already made a critical target, the other might do it before or for earnings. After that we’ll recap NFLX from last week into today and the outlook going forward.
Most of this week’s trading focused on short term opportunities and the volatility crush around earnings. Next week will be similar, with the notable addition of a potential correction for the major indexes.
It’s a pretty direct one and that is looking at the RBOB gasoline contract for a short as crude oil retraces to a resistance level and a shorting opportunity of its own.
They’re called HPMRs and they are a unique tool I created many years back that measure historical volatility at specific times of the day and week to help identify support and resistance that most traders don’t even know are there. These are available to members free for the ThinkOrSwim platform, and here is how to install and use them.
