Peter's Watch List February 26th

Good Morning,

The sharp pullback in the market continued yesterday, and probably more important than anything else us the severe spike in the VIX continued. If you are newer to trading, I can't stress enough that trading in a VIX 25 to 30 environment is very, very difficult. The good news is that a spike this big in the VIX rarely last for long, and as patient disciplined traders we welcome a good pullback as it sets up very good opportunities if we are patient. This morning the major indices are all over the place in the premarket trying to pick a direction. I will be patient to see how we open and how the open gets digested before looking for any trade opportunities. I lean towards whichever direction we go first is likely to reverse, and I will be watching for potential area of resistance or support for the market in the first hour of trading. Here are some names that I will be watching today:

SMPL showed some relative strength yesterday in a weak tape before meeting resistance at its ema34. I like this on a soft open and red to green move for a retest of the ema34 and possible move higher

TEVA is showing a lot of relative strength this week as its had some good FDA news and is perhaps expecting some good opioid trial news. I like this on a soft open and a red to green move for a test of yesterday's highs and possible push up to $14 or higher

PDCO is holding some nice near moving average support in this pullback and is in a nice TTM Squeeze with expanding volume. I like this on a soft open and then move back up through 23.25 to 23.40 for a move to $24 and then possible higher

ROKU us a bit of a story stock play that I am watching that could be a corona virus stay at home play if the market stays worried and weak on virus fears. Here I would be looking for a market pull and a ROKU pull and then look for ROKU to show some divergence from the market trend later in the day for a swing entry in a very small position in calls.

WWE is in a nice potential reversal pattern setting up for a 3/8/20 cross on the daily. I like this on a soft open and then a red to green move over 48.81 for a test of $50 and then a possible move up to the ema34 around $52

PTON is a name that I am still watching for a short on a rejection at 27.50 for a move back down to $25

I am also watching the following names for short entries on any bounce that meets resistance NKE, AAPL, DIS, AXP, INTC

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