After a big down day yesterday, we are looking at a big gap up for the major indices today as well as some easing in the VIX. It's important to note though that the VIX is still highly elevated. These types of big swings up and down in the major indices are very typical of a highly elevated VIX environment, and it can make swing trading very tough. Luckily yesterday we were able to book a very nice win in FB puts, and I will continue to very selectively look for other opportunities like this. With the big gap up today, I will be very patient to see how the open gets digested and will also likely wait for the PMI and ISM Services numbers to come out mid morning before taking any new trades. Here are a few names that I will be watching today:
RAD has been showing strength in market weakness and can be seen as a corona virus play who will see business increase if the virus continues to get worse in the US. I like this over $17 for a test of yesterday's high and possible move to $19
GSX has been holding its sma20 in this market weakness and I like this on a move over $44 for a test of yesterday's highs and possible move to $46 or higher
ANAB had earnings on Monday and is starting to move into the nice gap above. I like this on a soft open and then red to green move for a push up into the large gap above
APT is a corona virus play that makes surgical masks and other protective gear. We had a great day trade in the chat room on this yesterday, and I'm interested in a potential swing trade if it can find support at the daily ema8 today after pulling in the premarket.
AAPL I will be watching for a potential short if it finds resistance at either the $300 or $304 level. If I take this it would be in very small size for a potentially big move down
FB is a name that I still like as a potential short. Ideally I would like to see this find resistance at the daily sma200 around $194 for a short entry for a move down to the $185 area or lower
AAL is one of many beat down airline stocks that I don't think have found bottom yet. I like this as a short if it tests and fails to get through the $19 level for a move back down to $19 or lower
As a reminder, with this heightened level of volatility, and swing trade could potentially turn into a day trade if it works quickly in my favor, and I want anyone who is subject to PDT restrictions to know that.