Watch List May 7th

Good Morning,

Yesterday we saw some interesting action in the SPY with a lot of the day flat until a strong push late in the day which left us with a very nice looking candle on the daily. The DIA is also looking quite strong with another new all time high yesterday; however, the QQQ and IWM are not looking as strong with the IWM rangebound and the QQQ in a 3/8/20 cross down with a bearish TTM Squeeze. The VIX remains in a bullish looking TTM Squeeze, but it is so far unable to deal with resistance at the 20.00 level. Overall I think a little caution is still warranted until we see the indices either clearly align or clearly diverge. It will also be important to see the market's reaction to the employment report at 8:30 AM this morning. Here a few names that I will be watching today:


DLTR is flagging nicely in a TTM Squeeze just below its sma20. I like this from 114.50 to $115 for a reclaim of the sma20 and push to recent highs


KRE is rounding nicely towards the March highs, and I like this on a pullback to 69.50 for entry and look for a test of the March highs and possible breakout much higher


XLE I am already in the May $52 calls and will likely get out on a move through $53, but I am also interested in adding some longer dated calls on any pullback.


EA from yesterday I am still interested short it it tests and fails the sma20


TTWO from yesterday I am also still interested short in the $170-171 range


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