The market was a bit all over the place yesterday with a open and close that was pretty close together and big wicks to the up and down side on the daily candle. We did see a bit of easing from the VIX, which may (and I stress may) be starting to break down out of an ascending wedge. It is very important that we be patient here and don't call for or guess that the bottom is in. Strong bounces are very normal in a bear market, and until we see a lot more recovery, we must operate under the assumption that we are in a bear market. Today we also have quad witching to deal with, which is always a very challenging day to trade. For those who are not familiar with it, quad witching happens a few times a year when 4 different sets of options and futures contracts all expire on the same day. It generally results in some wild action into the close as big money tries to pin certain stocks and ETFs over or under a strike price level. My plan today is most likely to look for some quick day trades early and probably mostly observe in the afternoon. There are a few potential swing trade setups that I will be watching, but if I enter any of these it would be very late in the day so that I don't leave myself exposed to any unusual quad witching moves.
FB is a name that I will be watching for trade to the short side. Ideally this rallies hard and gets up into the low to mid $160s where I would be interested in FB puts
GSX is an online education company which should see a nice increase in business due to corona virus, and it's in a very nice TTM Squeeze on the daily. I like this over $42 for a push up to $46 or higher
PTON is a name I was watching yesterday and still like as a stay at home virus play. Ideally I like this on a soft open and a red to green move for a push up into the $28-29 area