It was quite a wild ride yesterday with a tight range bound start to the day followed by a pretty sharp pullback late in the afternoon. This morning we are pointing towards a modest gap up in the major indices as I type here at 7:50 AM Eastern time, and it will be very important to be patient to see how the open gets digested. Right now it looks like the SPY is going to open below its ema8 and above its sma20 and these two moving averages are going to be very important to watch today. I will also be keeping a very close eye on the VIX which had a big bounce yesterday and is down a bit this morning. Yesterday I took a starter in TWTR calls which unfortunately pulled with the market shortly after I entered the trade, but overall TWTR showed a lot of relative strength today and is well above my stop so I will give this some time unless the market pullback accelerates. Here are some names that I will be watching today:
UBER is a name that we made nice money on short yesterday before the GRUB rumor hit, and I still like this setup short on a test and rejection of the $33 level. If I were to take this it would be very small size using options to limit risk since GRUB news could still come.
GLD is a name that we traded multiple times the last few weeks, and I still lean bulllish on gold. I am interested in a long entry if GLD tests and holds trend line support around the $159 level
KHC was showing strength off of its sma20 yesterday prior to the big market pull, and I like this long if it can regain anchored vwap anchored to the recent highs which is at 29.58 for a test of 30 and possible push to $31 or higher
AAPL is extremely extended, and this is a name that I will be watching for a short entry only if the market starts to show weakness again. I would be interested in AAPL puts on a break of yesterday's low of day if this sets up
XLK just like AAPL I'm interested in market weakness and a break of yesterday's low of day for entry into puts
AMD is a name that I'm keeping an open mind on depending on what the market does. If the market shows strong signs of recovery I like this long for a test of recent highs, if the market shows weakness I like this short on a break of the sma20 for a push down to recent lows.
ROKU I still like on a test and hold of a key anchored vwap level around 126.50 for a push up to the mid $130s
EB is a name that I like short if it pushes back up to try and regain its sma50 and fails. This has a ton of range down if that sets up.