Weekly Watchlist – March 8 – 12
On Monday the Nasdaq officially entered into correction territory as it dropped more than 10% off its Feb. ATH. The DJIA closed up nearly 1% and SPY fell about 0.5%. The market is going through sector rotation as we are seeing money flowing out of tech and growth stocks and into industrials. On Wednesday, we get the Consumer Price Index data for the month of February 2021. Monthly changes in the CPI reflect the rate of inflation for the consumer. This could be a market moving catalyst as the rising bond yields have been a primary reason for the market sell off in recent days and investors continue to worry about inflation. The House will also vote on the stimulus bill Wednesday morning. Both the CPI and House vote could move the market in either direction this week. I’d be mindful of that if planning to swing anything overnight Tuesday to Wednesday.
$BA: $BA is a stock that has been recovering nicely the past 2 weeks. The reopening of states and the market sector rotation from tech and into industrials has been good for BA. It has been trading in about a $5 to $7 range from 223 to 230 the past few days. Last week we saw it get up to 237 before dropping back down to 220 level on Thursday’s strong market sell off. Look for BA to close above 230 to go long. Next BA will need to push through 240 and it can shoot higher.
Upside: 230, 240, 250, 275.
$TSLA: This stock has gone from a high of 900 to a low of 539 in just a matter of weeks. TSLA has been on a steady downtrend recently and is either on the brink of falling to 500 and below, or making a strong move to the upside. TSLA needs to clear 620, 630 and then it can make a strong move higher. For the downside I’d watch for a move under 540 and down to 500. Be careful with TSLA as buyers tend to step in aggressively when the stock drops too low.
Upside: 620, 630, 650 and up to 700.
Downside: Under 560, 540, 532, 525, 500
$SQ: A lot of bullish flow has been going into $SQ lately, with golden sweeps coming in for March 26, 2021 $230 Calls this past Friday. This stock went from a high of $283 just a month ago to a low of $191 Friday and closed right above its $215 support level. Today the stock was beaten down along with the tech sector as money continues to move out of tech/growth stocks and into industrials. I would be long the stock if it can get back to 210 – 215 range and close above it.
Upside: 215, 225, 230, 235, 245
Downside: under 191
$DIS: Disney has made a strong move to the upside despite the tech sell off and overall market chop and is trading at ATHs. This stock will likely continue to see more upside as states start reopening and Disney theme parks reopen to the public.
Upside: Hold above 200, then ATH 203.76, 205, 210
$DKNG: DKNG was trading at ATH post-earnings and then fell victim to the market sell off last Wednesday through Friday, closing Friday right under $60. Over the weekend they announced a partnership with UFC, as the official sports book for the league. Like $DIS, DraftKings will benefit from the reopening of states. I would look to go long on $DKNG above $62, and look for upside move above $64, $66.50, $69 and back to $73 ATHs.
Upside: hold over 62, pass through 64, 65.50, 69, then ATH 73.83
DISCLAIMER: This article is my opinion and expresses my views only. I am not a financial advisor. Please do your own DD.