Yesterday we saw a gap up on all of the major indices that slowly faded over the course of the day. We are clearly in an uptrend still, but that uptrend is starting to look very tired. We are also still very much in a news driven environment that can lead to some sharp moves up or down. At the moment we are looking at the ever elusive flat open, but that could certainly change in the next 90 minutes. In my scans for today's watch list I saw a lot of charts with big upper wicks, which often happens when the market might be ready for a rest. I didn't see a lot of great setups, but I did find a few interesting names:
KTOS gapped up and sold off on earnings earlier this week and yesterday moved over the earnings day highs. I like this over 19.80 for a test of $20 and move higher into the gap above.
TSLA is a name that had an irrational move up off of its earning sreport and now has shorts in a lot of trouble. if this can move over 337.50 I think you see a test of yesterday;s highs and a possible Friday short squeeze
TECK gapped up and saw aggressive profit taking on its earnings release late last month. Its now testing the earnings day high. I like this over 17.50 for a move to the high $17s
VKTX is another name that had recent earnings and a nice move up. Ideally I'd like to see a soft open and pick this up in the 7.50s for a move up to the sma200 in the high $7s
AMBA is in a TTM Squeeze and a short term flag heading into earning later this month. I like this over $56 for a move up to the sma50 around $58
BIIB is a name that I like to the short side. Ideally this tries to push up over the ema8 at the open and fails. If it does I like it short on a move down below 287.50