If anyone is wondering why we aren't alerting more swing trades this week, just take a look at how big the gap ups and gap downs have been this morning. We are looking for opportunities, but until this volatility settles a bit, overnight holds are very difficult. This morning we are seeing a pretty severe gap down in the major indices and another spike back up in the VIX. I think we are far from out of the woods in this pullback and will be very patient waiting for the very best A+ setups only. Here are a few names that I will be watching if the market finds support and reverses at all. I do not want to chase short entries on this gap down unless we see a significant move up that finds major resistance.
LVGO is starting a TTM Squeeze and is showing decent strength relative to the market. I like this on a pullback to the sma20 and then move back up through 26.50 for a push up to $28 or higher
LK is showing a lot of relative strength in this weak market and is in a very nice TTM Squeeze and its building a nice base of anchored volume by price. I like this on a pullback and then move back up through 40.50 for a push up to $43 or higher
TEAM is another name showing relative strength in a nice TTM Squeeze on the daily. I like this on a pullback to the sma20 and then move back up through $150 for a push back up to yesterday's high around $154
PDCO is another name in a TTM Squeeze showing relative strength. I like this on a pullback to its ema8 and then move back up through 24.50 for a push up to $26 or higher
Last but not least I will be watching NFLX which looks ready for a big move, but I think which way will depend a lot on how the market behaves this morning after the open.