It was quite the day yesterday for the market. We gapped up and then pulled before a long tight sideways stretch mid day that eventually broke down and sold off pretty hard. Today the market is anxiously awaiting stimulus news from Treasury Secretary Mnuchin and House Speaker Pelosi. In this news driven environment it it very important to keep our position size and overall risk very small. It is also worth noting that the VIX had a pretty good move up yesterday, and we could see increased volatility into the election in two weeks. From a chart perspective we still have an intact 3/8/20 cross up, but we are seeing a 3/8 cross down on the SPY daily this morning and any selling pressure could lead to a test of the daily sma20. Overall its a time to be pretty cautious and conservative and it may stay that way until the election. Here are a few names that I will be watching today:
UAL could be extremely volatile off of stimulus so if I take this I will take it extremely small. It has a nice TTM Squeeze and is testing a key anchored vwap level at $36. I like it over that level for a push up to $40
RUTH is in the restaurant sector which has been all over my scans and it is trying to take out its sma200 on the daily in a TTM Squeeze. I like this on a soft open that goes red to green for a push up to $13 or higher
GRWG pushed up off of a key anchored vwap level today and looks ready to work its way back towards the August highs. I like this on a soft open that goes red to green for a test of $20 and a possible break out over that level
PTON I like short if it tests yesterday's highs and fails to push through that 134 to 134.50 level. From there if this loses the ema8, there is a lot of room down.