We saw a bit of a mixed day yesterday with the QQQ green and the other major indices red. We also saw a bit of a bounce in the VIX, but nothing overly concerning as of yet there. This morning we are looking at more of the same, with most of the major indices relatively flat except for the QQQ, which is green. Overall a little bit of sideways consolidation is not a bad thing here, and I continue to like the overall chart of the SPY and a bit of a rest would probably have me liking it even more. Stimulus talks and Covid remain as potential headwinds for the market, so I will continue to keep position size on the smaller side for the time being.
Yesterday I took a starter in CLDR calls, which is a name that has seen quite a bit of unusual options activity and dark pool prints and yesterday spike on rumors of a buyout. I also like the reversal that this chart has put in with a nice 3/8/20 cross in a TTM Squeeze. I'm looking for a move to $14 for a target, and stops are set on a close below $11 for now which I will likely raise if this starts to work and can take out the $12 level.
Here are a few names that I will be watching today:
BJ is in a TTM Squeeze and is trying to take out anchored vwap resistance at 41.75 I like it over that level for a move up to the August highs
OSTK is in a TTM Squeeze and is taking out vwap anchored to the August highs. I like this on a pullback that holds anchored vwap around 83.35 for a push up to the mid $90s or higher
REAL is setting up for a 3/8/20 cross in a TTM Squeeze. I like this over $16.25 for a push up into the $18s
RKT is a recent issue that is in a nice TTM Squeeze with some key resistance at the $24 level. I like this over $24 for a $25 test and possible break much higher
CELH is building a beautiful shelf of anchored volume by price for a move higher. I like this on a pullback to $22 or on a soft open that goes red to green for a push up to $26