Quite a day yesterday where we gapped down with some quick recovery, and then did a whole bunch of sideways before a strong rally late. This morning we are gapping down again, and today is also opex day, which is generally a risk off day for me. For those not familiar with opex, it is the day that monthly options all expire, and big money put sellers and call sellers try to pin large cap stocks above or below a particular strike price. I find that it is a very difficult day to trade since you see some unnatural price action due to this. I have a watch list for today, but in all likelihood I will be more focused on some early day trades as opposed to swing trade unless something really sets up perfectly. Here are a few names that i will be watching:
XLK I still like for a potential short on a failed test of its daily ema8
LLY I like long on a break up over vwap anchored to the recent highs which is around 157.30 for a push up to those recent highs around $165
APT made a big move yesterday and is loaded with short interest. I like this on a weak open with a red to green move today for a possible short squeeze.
FEYE is a name that has been seeing a lot of unusual call sweep activity and i like this on a test and hold of its sma20 for a push back up to recent highs
DIS I like on a move over its sma20 or even on a red to green move with nice volume for a push up to test $110 and possibly break higher
SQ I like on a test and hold of its ema8 around 76 for a push up to 80 or higher