Yesterday we saw a gap up open in the markets that just kept grinding higher, until it didn't and we saw a big fade into the close and a red day for the SPY. Mid day in our chat room we kept noting that the VIX and the IWM were giving us some warning signs to the other major indices, and this indeed played out. Yesterday President Trump announced an executive order affecting social media companies and today he has a press conference scheduled to talk about China, and this is making the market a little bit nervous here. Right now we are looking at a relatively flat open for the major indices with a potential gap up in the VIX. Big spots to watch for the SPY are 305 to the upside and 300 to the downside. Breaking either one of those would probably give us some short term direction.
Yesterday I added per the plan to my position in GOLD calls, and gold names are all gapping up nicely this morning, and hopefully we start to see rotation back into the gold names. Stop loss on GOLD is now a close below $23 in the equity. Speaking of rotation, this is something we need to continue to watch in the coming days as big money is rotating in and out of different sectors which is resulting in some choppy movement in individual names and sectors. Here are some names that I will be watching today:
SNAP has been strong since their earnings report and unlike other social media companies didn't pullback after the executive order yesterday. I like this for a swing trade on a pullback to the sma20 or for a day trade on a break over 18.40 for a push up towards $20
CHWY I like long anywhere from the sma20 up to $42 for a run up into earnings on June 9th. It's a choppy trader, so if I take any position today it will be a partial position that I will try to build on next week.
MDLZ closed over a key anchored vwap yesterday and has a very nice TTM Squeeze on the daily. I like this on a retest of that anchored vwap level around 51.25 for a push up to the $55 area
CONE is trying to break out of a flag in a nice TTM Squeeze on the daily. Ideally I would like to see a pullback and hold of the sma20 for a swing entry
NLS is in a nice consolidation pattern along its sma20 and I like this over $6 for a push up to the $7 area
TWNK is in a nice TTM Squeeze on the daily with lots of room up to its sma200 if it can hold the sma20. I like this on a pullback and hold of the sma20 around 11.75