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