05/11/2022 Watchlist Chart

05/11/2022 Watchlist Chart

 

Watchlist for Wednesday, 05/11/2022

 

On Tuesday, SPY continued to reject the 405 resistance and managed to move up 0.23% on the day. Futures are currently up 0.60% after hours.

$ES (Futures) – Pivot: 4040 | Levels Above: 4055/4078/4086 | Levels Below: 4000/3987/3966/3900

$GM – The stock traded up 1.15% during market hours. On the daily timeframe, GM has been trading within a falling wedge pattern and is set for a breakout once it can clear the 41-level resistance. There was bullish flow into the 39C weeklies and some long-term 45C in December. We can see a potential break out soon if the market reacts positively to CPI data. Keep an eye on the 39 levels, if GM can break above with volume, it can test 40 to 42 (near 50DMA) resistance. Above 42 levels, it can test 44 to 47 level resistance. Consider puts if GM fails to hold above the 38 levels, as it can pull back down to 37 to 35 level support.

Contract Suggestion:
Above 39 level: 40C 05/13 (1.7K Volume @ 0.37)
Below 38 level: 37P 05/13 (961 Volume @ 0.32)

 

 

$V – The stock traded up 0.30% during market hours. On the daily timeframe, V is at critical support that has to hold (triple bottom) or this can get very ugly if it fails below. There was significant flow into 200C June expiration thinking this triple bottom will hold for V. Keep an eye on the 194 level or backtest 192 level, as it can test 200 to 203 level resistance. Above 203 level, it can test 207 to 210 level resistance. Consider puts if V fails to hold above the 192 level, as it can pull back down to 190 to 186 level support. Below that can drop down to 184 to 180 level support.

Contract Suggestion:
Above 194 or B/T 192 level: 195C 05/13 (645 Volume @ 2.86) or 2000 05/13 (6.3K Volume @ 1.15)
Below 192 level: 190P 05/13 (918 Volume @ 2.41)

 

 

$MSFT – The stock traded up 1.86% during market hours. On the daily timeframe, MSFT continues to trade within a falling wedge pattern with MSFT showing some strength after a three-day sell-off since last week. Despite it closing red for the day, the long bottom wick despite buyers showing up at the 266 level. If AAPL and MSFT start showing strength, we can start to see a potential bounce for tech. Keep an eye on the 273 level or backtest 270 level, as it can test 276 (9DMA) to 279 level resistance. Above 279 level, it can test 281 to 286 level resistance. Consider puts if MSFT fails to hold above the 266 or 270 level rejection, as it can pull back down to 263 to 260 level support. Below that can drop down to 255 to 250 level support.

Contract Suggestion:
Above 273 or B/T 270 level: 275C 05/13 (10.6K Volume @ 2.49) or 280C 05/13 (15.6K Volume @ 1.10)
Below 266 or 270 rejection: 260P 05/13 (3.3K Volume @ 1.84)

 

$SE – The stock fell 0.68% during market hours and was down 0.55% after hours. On the 1hr timeframe, we see a bear flag forming with a breakout below if SE fails that 62-level support. Interesting enough, towards the end of the day, there was an unusual flow in the 67C weeklies for a bet on a positive reaction to CPI tomorrow morning. Overall, on the daily, it’s still very bearish with a small gap to be filled from 73 to 74. Most growth stocks got crushed from this market pullback from highs and we may see it move down to the 50s soon if CPI brings max pain. Keep an eye on the 68 or backtest 62 levels, as it can test 73 to 76 level resistance. Above 76 levels, it can test 79 to 83 level resistance. Consider puts if SE fails to hold above the 62 levels, as it can pull back down to 59 to 56 level support. Below that can drop down to 53 to 50 level support.

Contract Suggestion:
Above 68 or B/T 62 level: 67C 05/13 (2.4K volume @ 2.23) or 70C 05/15 (1.9K Volume @ 1.36)
Below 62 level: 60P 05/13 (882 Volume @ 1.75)

 

 

***NEWS TO LOOK OUT FOR THIS WEEK***

  • Consumer Price Index on Wednesday (05/11) at 5:30 am PST/8:30 am EST (chart posted showing previous reactions in trading chat)
  • Unemployment claims data on Thursday (05/12) at 5:30 am PST/8:30 am EST

 

 

Leave a Reply

Your email address will not be published.