Watch List May 6th

Good Morning,

Yesterday we saw the market gap up, fade, go back to highs, and then chop sidewyas before pulling into the close. This morning we are looking at a flat open as I type at 7:30 AM, but that could easily change with the jobless claims numbers at 8:30 AM Eastern. The SPY is clinging to its daily sma20 and still looks constructive for now, but the QQQ has a clean 3/8/20 cross down and is in danger of losing some trendline support with a bearish TTM Squeeze. Although this doesn't have me full on bearish at all, I do want to make sure we are looking for some short opportunities in addition to longs. We have lots of nice potential long setups from the weekly watch list and the previous days watch lists, so today I am going to focus on some short setups for the daily watch list:


EA is setting up in a short term daily bear flag with bearish TTM Squeeze on the daily heading into earnings next Tuesday. I like this short on a fill of the gap above at 141 for a push down to the sma200 at 135 into earnings


FUTU lost and is failing to reclaim vwap anchored to the February highs. I like this short on a failed attempt to reclaim that vwap level around $149 for a push down to $130 or lower


SONO is setting up a head and shoulders in a bearish looking TTM Squeeze. I like this short on a failed attempt to reclaim the sma20 at 41.50 for a test of 40 and possible break much lower heading into earnings next Wednesday


TTWO is in a short term bear flag and a longer term head and shoulders as it heads into earnings on May 18th. I like this short on a failed attempt to reclaim the $170 level for a push down to $160 or lower


TWOU is a stay at home education name that has already seen some correction, but is back in a short term bear flag with a bearish TTM Squeeze on the daily. I like this short on a failed attempt to reclaim its sma200 around $39









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