02/03/2022 Watchlist Chart
Watchlist for 02/03/2022
$MSFT – The stock traded up 1.52% during market hours but was down 1.07% after hours. On the daily timeframe, MSFT was at the cusp of breaking out for a leg higher as it was showing relative strength but is currently down big due to poor tech earnings from FB/QCOM/SPOT. If we can see money flow back into tech and market bouncing, MSFT is set to move higher. Based on the after-hours price, keep an eye on the 309 level, if MSFT can hold above this level, it can test 313 to 315 level resistance. Above 315 level, it can test 317 (100DMA) to 320 level resistance. We will consider puts if MSFT fails to hold above the 309 level, as it can pull back down to 306 to 303 level support.
Contract Suggestion:
Above 309 level: 312.5C 02/04 (21.3K Volume @3.30)
Below 309 level: 307.5P 02/04 (6.5K Volume @1.05)
$CAT – The stock fell 0.20% during market hours and was down 0.46% after hours. On the daily timeframe, CAT double-bottomed near the 193 level and has been attempted to break above the 206 resistances for a move higher. It was showing some relative strength at Wednesday’s open but ended up closing red under the 100DMA (104.26). Keep in mind the money rotation as money coming out of tech will rotate into other sectors. Watch the 206 level, if CAT can break above with volume, it can test 208 (50DMA) to 210 level resistance. Above 210 level, it can test 212 (200DMA) to 217 level resistance. We will consider puts if CAT fails to hold above the 202 level, as it can drop back down to 200 to 198 level support.
Contract Suggestion:
Above 206 level: 207C 02/04 (950 Volume @0.85)
Below 202 level: 200P 02/04 (663 Volume @0.53)
$ATVI – The stock traded up 0.24% during market hours but was down 0.13% after hours. ATVI reports earnings on Thursday (02/03) aftermarket closes and they are pricing in a 3pt move in either direction on the weekly options prices. On the daily timeframe, ATVI currently has a huge gap to fill from 81 down to 65 from their buyout by MSFT. The flow is bullish but weekly expiration premiums are slightly favoring puts. Keep an eye on the 78 levels (9DMA), if ATVI fails to hold above this level, it can test 75 to 71 level support. Below that can drop down to 68 to 63 level support. We will consider calls if ATVI breaks above the 80 levels, as it can test 87 to 90 level resistance.
Contract Suggestion:
Above 80 level: 80C 02/04 (6K Volume @0.43) or 80C 02/11 (3.6K Volume @0.68)
Below 78 level: 78P 02/11 (464 Volume @0.55)
$HD – The stock traded up 1.36% during market hours but was down 0.32% after hours. On the daily timeframe, HD is attempting to break out of the rising wedge to invalidate the bearish pattern but found rejection near the 100DMA (373.56) which rest near the top trend-line. HD overall was showing relative strength as it managed to close green despite many other stocks closing red for the day. Keep an eye on the 375 level, if HD can break above with volume, it can test 380 to 384 level resistance. We will consider puts if HD fails to hold above the 370 level as it can pull back down to 368 to 366 (9DMA) level support. Below that can drop down to 362 to 355 level support.
Contract Suggestion:
Above 375 level: 377.5C 02/04 (351 Volume @1.50) or 380C 02/14 (140 Volume @3.10)
Below 370 level: 365P 02/04 (1.2K Volume @0.90)
***NEWS TO LOOK OUT FOR THIS WEEK***
- Unemployment Claims Data on Thursday (01/27) @ 5:30 am PST/8:30 am EST
- Non-farm payroll for January 2022 on Friday (02/04) @ 5:30am PST/8:30am EST