05/12/2022 Watchlist Chart
Watchlist for Thursday, 05/12/2022
On Wednesday, $SPY failed the reclaim the 405 resistance and fell towards the 392 support and bounced, ending the day down 1.59%. Futures are currently down 0.45% after hours.
$ES (Futures) – Pivot: 3950 | Levels Above: 3985/4000/4050 | Levels Below: 3920/3900/3875/3850
$FB – The stock fell 4.51% during market hours. On the daily timeframe, FB is continuing to fill the gap down (181, also .786 fib retracement) from their earnings report reaction and it closed a bearish candlestick pattern. It was showing relative weakness as evidenced by closing near the low of the day with a gap to be filled down to 182. If we continue to see tech sell-off, FB would be a great candidate for puts. Keep an eye on the 190 level rejection or under 188 as it can test 181 down to test 169 (LOD on their ER) down to 160 level support. We will consider calls if FB can break above 190 levels, as it can test 196 to 200-level resistance. Above that can test 207 (50DMA).
Contract Suggestion:
Above 190 level: 195C 05/13 (6.1K Volume @ 1.68)
Below 188 or 190 rejection: 185P 05/13 (8.3K Volume @ 2.69) or 180P 05/13 (6.16 Volume @ 1.37)
$GOOGL – The stock fell 0.69% during market hours but was up 0.48% after hours. On the daily timeframe, despite GOOGL closing an inverted green hammer, it’s not as strong as we continue to see the 9DMA (2321.76) acting as dynamic resistance for this stock. It was one of the few stocks that closed green in a sea of red with relative strength but it’s currently trading in no man’s land. This would be a great candidate for calls if the market decides it wants to bounce, but with overall pressure still towards the bearish side, this pop may get sold off after. On the weekly timeframe, we see GOOGL riding that 100DMA (255.76) as a support, so potentially, this would be a great bounce zone to play, but the weekly volume is not yet convincing due to low bounce volume. This may end up being a dead cat bounce if we continue to see it lack volume on this bounce. Keep an eye on the 2280 or backtest 2265 level, as it can test 2300 to 2315 (near 9DMA) level resistance. Above that can test 2342 (hard resistance) to 2360 level resistance. We will consider puts if GOOGL fails to hold above the 2265 level, as it can pull back down to 2254 to 2235 level support. Under that can see 2218 to 2200 level support.
Contract Suggestion:
(Call/Put Ratio = 0.78)
Above 2280 or B/T 2265 level: 2350C 05/13 (1.5K Volume @ 9.40)
Below 2265 level: 2200P 05/13 (1.3K Volume @ 13.10) or 2150P 05/13 (429 Volume @ 6.00)
$AMD – The stock fell 0.91% during market hours. Relative to the semiconductor sector, AMD was showing some strength while the others closed the majority in the red. Despite AMD closing green on the daily, it closed a Doji showing indecision in an overall downtrend. We continue to see the 85 levels as strong support after multiple bounces but the more it’s tested, the weaker it gets. Keep an eye on the 88 levels, if AMD can break above with volume, it can test 90 to 94 level resistance. Above 94 levels, it can test 97 to 100 level resistance. We will consider puts if AMD fails to hold above 85 level or 88 rejection, as it can set a leg lower down to 81 to 79 level support.
Contract Suggestion:
Above 88 level: 90C 05/13 (18K Volume @ 1.35)
Below 85 or 88 rejection: 85P 05/13 (20.2K Volume @ 1.10) or 83P 05/13 (2.5K Volume @ 0.63)
***NEWS TO LOOK OUT FOR THIS WEEK***
- Producer Price Index for April 2022 on Thursday (05/12) at 5:30 am PST/8:30 am EST
- Unemployment claims data on Thursday (05/12) at 5:30 am PST/8:30 am EST