Watch List October 7th

Good Morning,

Yesterday was quite the rollercoaster ride for the market. Everything looked very promising into the afternoon until a tweet from President Trump seemingly ended any hope of a stimulus deal and the market sold off hard. Last night the President softened his stance a bit, and we are now looking at a big gap up for the SPY. This news driven chop is very difficult for us as traders and especially difficult for swing trading. It is absolutely critical that we continue to keep position size small and overall risk overnight on the low side. The charts for the major indices continue to look somewhat constructive, but we are likely to see continued chop into November. In my scans today I saw a lot of broken charts with that move up and then drastic pullback, but there are a few decent looking setups for today:

ALT is setting up for a 3/8/20 cross in a TTM Squeeze. I like this over $14 for a push up to $16 or higher

GO had a strong move up to its daily sma50 in a TTM Squeeze, and gave a nice continuation move yesterday. I like this over $42 for a push up to the $45 area

MIK is consolidating in a slight pullback of of recent highs and is trying to reclaim vwap anchored to the highs. I like this over 10.10 for a test of $11 and possible push to $12

JD is in a nice TTM Squeeze, and I like this over $79 for a push up into the mid to high $80s

14 views0 comments