Good Morning and Happy Sunday!
After an uneventful Monday , the market gave us quite a wild ride the rest of last week. We saw a pretty severe two day selloff, followed by some recovery on Thursday and Friday. We could find ourselves right back in the choppy August trading range we were in, which was basically from SPY $284 to $294. We also have a lot on our plate this week with global macroeconomic and geopolitical events. The situation in Honk Kong continues to escalate, and this could eventually affect US China trade talks. Speaking of trade talks, we have deputy level meetings Monday and Tuesday of this week, followed by principal level meeting on Thursday and Friday. Overall, we remain patient and cautious in our approach, and we will continue to focus on shorter term setups. Here are some names that we will be watching this week:
SWAV was a spring IPO that moved up nicely, pulled back and then sold off even more after lockup expiration. it seems to have found support at $30 and looks ready for a potential 3/8/20 cross up. We like this on a 3/8/20 cross up somewhere in the 38.40 to 38.75 area for a move up to $35
PAYS gave a 3/8/20 cross up last week with a TTM Squeeze on the daily. Ideally we would like to see a pullback and hold off the $11 area for entry and if it triggers trim some at the ema34 and hold some for a potential move up through there to $12
SYNA is a name showing a lot of strength recently in a sloppy cup and handle pattern. Ideally we'd like to see this pullback to the 40 to 40.25 area and turn back up for entry and a potential breakout over Friday's highs
FIT had a high volume move up a few weeks ago on news that it might explore strategic alternatives including a sale. It retraced all of the move, but is now looking ready to test is sma100 and possibly retest the highs. We like this over $4 for a push up to the mid to high $4s
ARWR just barely had a 3/8/20 cross up on Friday and looks ready to continue higher if it can get over Friday's high. We like this over 30.68 for a move to $33 or higher
WEN is another name with a 3/8/20 cross that also just took out its ema34. We like this ideally on a pullback and hold of 20.50 for a move up into the gap above
SCHW is a story stock where we believe that the market has perhaps over reacted to the news that it is going to zero commission. Of all the online brokers doing this, Schwab gets the least amount of their revenues from commissions, so they are better positioned to handle this than ETrade or TD Ameritrade. We like Schwab over 35.80 for move up to $37 or higher
TWLO has a nice TTM Squeeze on the daily and is setting up for a 3/8/20 cross up. We like this over 112.60 for a move up $115 or higher
CROX has been showing a lot of strength in a weak market and held its sma20 perfectly this week. We like this over $29 for a potential break out and move up to $30 or higher
WORK is a relatively recent issue that has been beat up like so many recent IPOs. Its getting close to a 3/8/20 cross up after basing around $22. We like this over 25.21 for a push up towards the ema34 around 26.50 It also worth noting that there was some unusual options activity in the October monthly $30 calls recently.