Last week was a wild week for the market, as we saw the major indices rebound off critical support levels and back to new record highs for the Dow, and SPY closed at $394.06 on Friday, just below its record intraday high of $395.65. If you bought the dip from 2 weeks ago, you are surely happy with the way things turned out last week.
This week the market’s theme seems to be the reopening of the economy as most states continue to roll back the Covid-19 restrictions and begin allowing indoor dining, parks, stadium seating, theaters, and bars to reopen. Another major theme is $BTC.X surging to new ATHS as it surpasses $60K, coincidentally around the same time of the U.S. new covid relief bill is signed into order (another whooping $1.9T print job for the U.S. Federal Reserve) and putting another $1400 stimulus in many American’s pockets. After the passing of the first covid relief bill we saw stocks rally to new highs. It’ll be interesting to see if history will repeat itself again or whether we will continue the sector rotation movement, moving money out of tech and growth and into value and industrials.
chart link: http://tos.mx/HbrDU94
It seems as $BA has finally turned the corner after being beaten down for over a year after its handling of the two 737 Max crashes. This stock has made MASSIVE upside moves over the past few days and as of writing, it seems as if $BA is going to continue to shoot higher. The chart for $BA looks extremely bullish, however, it is possible that it will take a little breather or come back down a bit after the crazy rally of the past 4 trading days. Look for this stock to continue its momentum if it can hold 270 support. If $BA continues to show strength and moves through $275, this stock could potentially be setting up for another 10-15 point move.
Upside: Hold above 270, through 275, 280, 287.50, 290, 300
Downside: 260, 255, 250
chart link: https://tos.mx/0GYbheR
Tesla is another stock that had a massive upside move over the last few days, going from a low of $519 on March 4th to a close of 693.73 on Friday. Watch for $TSLA to move through the 715 – 720 range in order to make another strong move to the upside.
Upside: 720, 730, 745-750, 780, 800
Downside: 660, 642, 620, 600
chart link: https://tos.mx/l6cyYlD
Another one from last week’s watchlist, $SQ, made a nice bounce off Monday’s low of $201 and capped off the week at $242.11 on Friday. This stock was at $283 less than a month ago, but fell victim to the tech sector rotation of the past couple weeks (mentioned in last week’s watchlist). Square is also invested in Bitcoin and allows for users to purchase cryptocurrencies on their app. Bitcoin surpassing $60k could be the catalyst $SQ needs in order to continue the upwards momentum from last week. Watch for $SQ to move past the $245-246 and close above in order to continue its move to the upside.
Upside: 250, 255, 262, 270
Downside: 230, 225, 220
chart link: https://tos.mx/xgARxuF
This stock is both a play on the reopening of the economy, sports gambling, and the huge momentum it gets from Barstool and the face of Barstool, Dave Portnoy. On Friday after market’s close, the S&P 500 announced it will be adding $PENN to the list of companies in its portfolio. The stock rallied past its ATH of $134 and reached an after hours high of $141.85. With this stock trading at ATHs, I’d be mindful of premium burns if holding this throughout the week. Take this one in $2 to $3 increments on the upside.
Upside: above $142, 145, 148, 150
Downside: 135, 134, 129, 125
chart link: https://tos.mx/19Hj9Vl
The $AMC and WSB hype train is back baby! $AMC is trading higher based on the reopening of the economy and news that nearly 90% of its U.S. theaters and 21% of its leased and partnership international theaters have are open and operating with at least limited seating. Over the weekend it was announced that 2 of its marquee theaters in LA were set to reopen this week as well. Many eyes are on this stock and it could be set up for a potential short squeeze.
Upside: 12.50, 13, 15, 17, 18, 20
Downside: Under 11, 10, 9.50, 7.50, 6
DISCLAIMER: I am not a financial advisor, these setups are my opinion and my opinion only. Please do your own DD.