Watch List December 11th

Good Morning,

Yesterday the market was largely sideways after gapping down and getting some quick recovery. This morning we are looking at another gap down and the SPY is likely to gap down to around the area of its daily sma20. A test of this area should tell us a lot about the character of the market. We are also pointing to a gap up in the VIX, which is setting up for a 3/8/20 cross up in a TTM Squeeze. Overall we are still in an intermediate term uptrend, but we are certainly seeing a multiday pullback here. The big question is where do we find support. We still have some swing positions on, but we are keeping position size very small as further weakness could stop us out of these positions. Here are a few names that we will be watching today:


WEN I still like from yesterday's watch list. Ideally this tests and holds $22 for a swing entry


KALA is in a tight TTM Squeeze and is building a very nice shelf of anchored volume by price for some further recovery off of the recent lows. I like 7.50 for an entry here for a push up to the mid to high $8s


ARNA sold off hard last month and is now getting some recovery. I like this on a soft open that goes red to green for a push up into the large gap above


CPRT is in a tight TTM Squeeze and is building a nice shelf of anchored volume by price after a recent pullback. I like this on a pullback to $112 that gets bought and pushes back up


PPD is in a TTM Squeeze and is holding trend line support as it builds a nice shelf of anchored volume by price. I like this on a pullback and hold of the trend line around 34.50 for a long entry for a push back up to 37.50 or higher


PTON is more of a day trade watch here, but I like it on a soft open that goes red to green for a push up into the gap that closes around $122







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