Watch List May 5th

Good Morning,

Yesterday we saw some pullback in the major indices, which one could argue was much needed. We also saw a spike in the VIX that spent most of the day above that 20 level, but ended up closing below it. This morning we are pointing towards a gap up in the indices and a gap down in the VIX, but a lot could change with the ADP employment report at 8:30 AM and the PMI and ISM services numbers in the first half hour of trading. For now the SPY is holding its sma20, but the QQQ has a clean 3/8/20 cross down with negative TTM momentum. It will be important to see if the QQQ makes an attempt to reclaim the sma20 or if we see further selling in the big tech and growth companies into the end of the week. Overall I am a little cautious until the VIX eases back towards lows or the QQQ reclaims that sma20. Here are a few names that I will be watching:


GT is consolidating nicely along its sma20 and vwap anchored to the recent highs in a TTM Squeeze on the daily. I like this on a pullback to $18 for a push up to $20 or higher


PBCT is consolidating nicely along its sma20 and vwap anchored to the recent highs in a TTM Squeeze on the daily. I like this on a pullback to those levels for a push up to $20


SWBI is in a very nice inverse head and shoulders pattern with a TTM Squeeze on the daily and is taking out vwap anchored to the January highs. I like this on a pullback to that vwap level around 18.50 for a push up to $22 or higher


URBN is consolidating nicely along its sma20 and vwap anchored to the recent highs in a TTM Squeeze on the daily. I like this on a pullback and hold of that sma20 for a push up to $42 or higher

WMT is in a TTM Squeeze on the daily with a nice gap above. I like this around $141 for a push up to fill the gap around $145 or higher as this heads into earnings on May 18th



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