Watch List December 10th

Good Morning,

The market finally took a rest yesterday with a decent pullback off of new all time highs. This is why we always like to manage risk through small position size when we are on all time high resistance. It gives us the ability to survive these pullbacks, and if this turns into a deeper pullback we will be OK with stopping out of all positions if our stops get hit. This morning we have some economic reports coming up that will likely impact the market. at 8:30 AM Eastern we have initial jobless claims as well as CPI, both of which could impact the market. We also have stimulus talk looming in the background, and the market has been reacting to every positive or negative comment from the players involved there. We will likely be patient at the open to see if this pullback leads to something more or if the dip is going to get bought. Here are some names that we are watching today:

DLTR is an EGO or Earnings Gap n'GO setup that is right on vwap anchored to the gap up. I like that vwap level of 110.50 for an entry for a break out of the current consolidation

DGLY is in a nice TTM Squeeze and put in an inside day yesterday. I like this on a soft open that goes red to green for a push up to test this week's highs and possibly break much higher

CAR gapped up on vaccine news last month and is now consolidating just above vwap anchored to that gap up. I like this on a pullback to that anchored vwap level around 37.50 for an eventual break higher out of the consolidation

CHRW gapped down in October and is now looking ready to push back up into that gap. I like this on a pullback to the sma20 around $93 for a push up to $100 or higher

WEN is breaking some trend line resistance and setting up for a 3/8/20 cross up with TTM. I like this on a pullback to 22.25 for a nice risk/reward entry for a push back up to the recent highs

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