I hope that everyone enjoyed the holiday and has had some relaxing time off. Before we get to the market and the watch list, please be sure to stay tuned this week for info about our upcoming holiday open house.
The market continued to show a lot of strength this week, as it made new all time highs every day last week except for Friday. We did see a slight pullback Friday, and it would be very normal for the major indices to back test some previous resistance areas as potential support. It is also worth noting that the VIX regained its sma20 on the daily and its daily TTM is again looking somewhat bullish. Having said that, we will keep a very open mind as we can't deny that the market has been extremely resilient. Here are some names that we will be watching this week:
PRTY is a very beat up, oversold name that looks ready for a bounce. It has some positive news with some promotional rights with Frozen 2 and has a couple of nice gaps above. We like this over 1.96 up to $2 for a move up into the first gap and possibly up to the sma20 in the mid $2s
KL is a gold miner that acquired another company recently and got punished for that by the market, which is often the case for the acquirer. This is a best in class miner, and we are seeing some signs that gold and silver names might get some attention this week. We like this either on a pullback and hold of $41 or a break over $42 for a move up into the gap above
PAAS is a silver name that has a very nice cup and handle pattern. We like this over 19.34 for a move up to test $20 and possibly push higher
BYND has been under a lot of selling pressure since its lockup expiration and is starting to show some signs of a turnaround. Ideally we would like this on a pullback and then move back up through the $82 to 83.00 area for entry for a move up towards the gap above around $90
YUM is another beat up name that is showing some signs of reversing. It has a clean 3/8/20 cross up on the daily and looks ready to potentially push higher. We like this ideally on a pullback and hold of the $100 level for a push up to the ema34 around 102.50
PINS is the last name on our list and one that may require a bit of patience to set up. It tried and failed to get through its sma20 a couple times last week, and we would be looking for a 3/8/20 cross up for entry to go up to the ema34 around 21.50