Watch List February 26th

Good Morning,

Yesterday we saw market under pressure again with some pretty sharp pullbacks in all of the major indices and a spike in the VIX that took out multiple resistance levels. This morning we are pointing to a moderated gap up for the indices and a gap down in the VIX. Overall it remains a time to be patient and cautious until this choppy action calms down a bit and picks a direction. The intermediate term trend remains up, but the pullbacks in that trend have become more frequent and more severe which is something we need to monitor carefully. It is also critical that we continue to keep position size and overall risk small. In the next week or so we should have a better handle on whether this most recent pullback is just choppy consolidation or that start of a deeper pullback, and we will act accordingly once that reveals itself. Here are a few names that I will be watching today:

CNK reported earnings today and is down a bit on a miss which should be no surprise. Ideally I would like to see this pull to vwap anchored to the January 27th high around $22 for an entry into a starter position for this get back out there name that could easily push up to the $30 area

NCLH is another get back out there name that pulled on earnings yesterday which is making it much closer to a more attractive risk to reward for entry. Ideally this pulls down to its ema8 around $28 for a starter entry long in this get back out there name

TWTR gapped up on revised guidance and strategy yesterday and faded most of the day with the market. I like this long an a little more pullback to the 72.50 area for a push up to $80 or higher

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