Watch List August 28th

Good Morning,

Yesterday the SPY made another all time high (I think I can just cut and paste this to start each day's watch list). This morning the major indices are all gapping up, and it looks like the SPY may want to test that 350 level. Having said that we still see a lot of yellow flags out there, and we need to be concerned that the nonstop grind higher may need a rest soon. First and foremost among those red flags is the VIX, which broke up and out of a descending wedge yesterday and is setting up a 3/8/20 cross in a bullish looking TTM Squeeze. In scanning for trade setups today, I found very little in the way of A+ setups, which is another yellow flag to throw into the mix. Our bias will stay long until proven wrong, but signs that the market needs a rest are starting to pile up here. Today is Friday and almost the end of the month. We will be extremely cautious heading into the weekend and month end. Here are a few names that I will be watching today:

TGT lost a key anchored vwap level yesterday and I would be interested in going short if it tries to reclaim that level at $152 and fails

CRM looks primed for a strong continuation of its earnings move. I would be interested in a swing trade on a pullback and hold of the $275 area or a day trade over yesterday's high of day

ALXN is breaking out of a long descending wedge in a TTM Squeeze with a nice shelf of anchored volume by price. I like this on a pullback and hold of the $105 area for a swing

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