Watch List May 27th

Good Morning,

Another day and another big gap up for the market. After a big gap up and sideways all day yesterday that only gave a fade very late in the day, it looks like we are going to gap up quite a bit again today. It is worth noting that yesterday the market was up a lot and the VIX closed green on the day. I will continue to keep a close eye on the VIX today which is gapping down but not that much. This morning I will be very patient at the open to see how this 2nd large gap up in two days gets digested before making any new trades. Unfortunately these large gap ups make it very difficult to get good risk to reward trade entries, and it is important that we be very patient in waiting for our desired entries. Yesterday I opened a 1/2 size starter position in GOLD, which is under some pressure this morning. I will not do anything with this position in the morning and will see how this looks in the afternoon before making a decision on stopping out or staying in. Here are a few names that I will be watching:

BA is gapping up to a key anchored vwap level and near a key psychological level of $150. I will be watching for a $150 test to see how the stock reacts and would consider a short position on a failed breakout attempt

INCY is a name from our weekly watch list that I will have my eyes on today. Yesterday it pulled to anchored vwap support around $98 and held, and I am interested in a long position if that key level continues to hold today

ABT is a name that I will be watching with an open mind depending on market strength and the IBB. The $88 level has been solid support here, and I like it long off of that level with a strong market and IBB or short below that level if the market and IBB show signs of a pullback

TLRY is a name I like long if it doesn't gap up too much this morning. I like this on a move through $11 if it doesn't run away from us in the premarket

CHEF is in a nice little ascending triangle formation that I like long for a swing on a pullback and hold of the lower trend line around $14 or for a day trade on a break over the upper trend line around 15.70

KSS is in a nice TTM Squeeze and in a reversal pattern, but it looks to be gapping up this morning. If this gap up holds, I would be interested in getting long on a gap and fade that holds the $20 level for a push up to the gap above starting around 25.50

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