MIDWEEK WATCHLIST: 03/23 – 03/26
Last week’s beat down was simply a culmination of too much data and economic events happening all at once. We had the FOMC meeting minutes released on Tuesday, Fed Chairmain Powell speaking on Fed policy and the outlook for the economy on Wednesday and Thursday, quadruple witching week, and to top it all off.. we got the 10yr Treasury yield rising above 1.7%, causing an outflow of money leaving big tech and growth stocks and into bonds and less risky investments.
On to this week:
On Monday, we saw tech and the overall market recover some of the ground they lost in last weeks sell-off. However, we are not out of muddy waters just yet. We can expect some intraday volatility Tuesday and Wednesday as Chairman Powell is set to speak again and the market tends to pick the direction it wants to head to (up or down) shortly after his comments. For the rest of the week, we have the GDP and jobless claims reports set to release Thursday prior to market open and the International Trade in Goods, Consumer Sentiment, and Personal Income and Outlays reports will be released Friday morning.
Anyways, enough of the chatter. Here are a few of my favorite charts going into the rest of the week.
Ugly and choppy price action on this one lately. Not much to say on this one as it continues to struggle finding direction. You’r playing with fire trying to swing trade in this range, and even day trading is a bit risky.
Upside: 393, 395, 396**
Downside: 390, 389 – 388.50, 387, 385, 383, 380
The Qs had a nice bounce on Monday, gettig as high as $320 before closing at $318.61 for the session. Today the ETF took a small hit (as expected due to Powell’s comments on the state of the economy and outlook for the coming years) but closed right around the 317 support/resistance level. I expect more volatility the rest of the week with Powell speaking tomorrow. It is also possible for Powell to pump the markets and ease some of investor’s worries with his closing remarks. If Powell pumps, expect this to get back to 320s and shoot higher. Otherwise, the Qs should hold above 310 and be relatively safe in the near term. Under 310 and sellers will become aggressive.
Upside: 320, 323, 325, 330
Downside: Under 312, 310, 307 to 300
Tesla… this stock can be tricky to trade as it typically moves in 25 to 30 point range before getting ready to make a big move in either direction. On Monday, TSLA looked like it was finally ready to shoot higher, reaching an intraday high of $699 before dropping back down to close at $670. I like TSLA’s upside potential as long as it can hold above 650 throughout the week. A lot of bullish flow has been going into TSLA call options expiring this week and next. While the stock is currently trading sideways, $TSLA could have a nice recovery bounce once volatility settles down later on in the week.
On the charts it looks like it is forming a bit of an inverse head and shoulders on both the Daily and 4H charts, but it really needs to move through the 717-720 level if it wants to breakout higher.
Upside: $700, 717-720, 745 and higher
Downside: Under 620, 600, 580
GameStop is set to release its earnings report Tuesday after market close. You can expect madness on this one. It is likely we’ll see a MAJOR move in either direction post-earnings and going into the rest of the trading week.
Upside: 260, 300, 350, 383, 400
Downside: 180, 145, 120, 100, 70, 40
Despite the overall market selloff of the past few days, Facebook has shown some nice relative strength and continues to make upside moves. Look for this one to continue its upwards momentum as it gets closer to its ATH of $304.67.
Upside: 292, 295, 300, 304.67 and higher
Downside: **not looking to trade the downside**
DraftKings has been quietly trading near ATHs, hovering right around its $70 support level. This is a play on the reopening of the economy, March Madness, and the uptick in legalized sports gambling. Look for this one to shoot higher as DraftKings continues to announce strategic partnerships with various professional leagues and several sporting events. The stock is also likely to see a boost once states release the sports betting revenue for the month of March (lots of major sporting events for the month: March Madness, UFC 259 and 260, boxing, etc.). Ideally, I’d like DKNG to dip a little before getting into some calls but I am eyeing $75 C and $80 C for mid April or early May.
Upside: Above 70, 72, ATH 74.38 and higher
Downside: under 67, 65, 62, 60
IT AIN’T EASY BEING CHEEZY
These charts and trade ideas are my opinion and my opinion only. Please do your own DD. I am not a financial advisor.