It was quite a week for the market, where we saw gap up after gap up until finally taking a rest on Friday. We saw some of the major indices make new all time highs before giving a bit of a fade yesterday. A couple points of interest are that the VIX held a trend line that used to be resistance that now looks to be trying to hold as short term support.
It is also worth noting that the DIA is giving us a pretty classic evening star setup which often leads to a short term pullback. On top of that we have the constant stream of corona virus news which has been resulting in some wild moves both up and down over the last few weeks.
Our subscribers know that we have been taking trades in this chop, but we are making a point of keeping our position sizes very small through this volatility and chop, which is critical to manage your risk in times like these where a gap down or up can blow through your stops on a long or short position. We were able close out some nice wins this week in SDC, BA calls, and GOLD, and we will continue to look for opportunities while keeping our position size and risk very small. Here are a few names that we will be watching this week:
RAD gapped up on earnings in December and had a nice follow through before retracing a bit. It just gave us a 3/8/20 cross up with a TTM Squeeze and has lot of room up if it can continue here. We ideally like this on a back test and hold of the sma20, but we would also be interested on a volume break over 13.15 for a push to 14 or higher
SDC was a winner for us last week and we still like it here for continuation higher. Ideally we would like to see a pullback and hold of the $14 level, but we would also consider a volume break over $15 for a push up to $16 or higher.
NET is a newer issue that has been trading in a tight coil and is in a TTM Squeeze. We would want to see the TTM momentum bars go from red to yellow and a move over 18.20 for entry and a test of 18.50 and possible push up to the mid $19s. Be aware that earnings are on February 13th after the close and we will not hold this through earnings
ZM was on last week's list, and it blew right through our target entry at the open on Monday never giving us a chance to get in where we wanted. It has been flagging nicely since, and ideally we like this on a back test of the daily ema8 and move up off of it for a test of $90 and possible push up to $93
BA is another name that was a winner for us last week and we like it for potential continuation this week. Ideally we would like to see a pullback and hold of the sma50 and enter on the way back up for a test of last week's highs and potential push up towards $350
TWTR had earnings this week and had a strong push up before giving an inside day on Friday. Ideally we like this on a back test of the sma200 below and then a push back through the 37 to 37.50 area for entry and a push up to the $40 area
In addition to the above setups, we will be watching a number of names for potential short setups depending on how the market acts this week. These names include BYND, ULTA, AMD, MOMO, AAPL, LOPE, CNC, EBAY, and FOLD