05/17/2022 Watchlist Chart
Watchlist for Tuesday, 05/17/2022
On Monday, $SPY fell 0.41%. Before the close, We mentioned that the MOC imbalance was $950M to the buy-side. Futures are currently up 0.28% after hours. I would not be surprised if we chop/range until Powell speaks at 2 PM EST.
$ES (Futures) – Pivot: 4004 | Levels Above: 4052/4085/4100 | Levels Below: 3960/3930/3880
$AAPL – The stock fell 1.07% during market hours but was up 0.23% after hours. On the daily timeframe, AAPL has been holding up the trend-line support, AAPL closed an inside day pattern, so either AAPL breaks back up or continues the trend down. It was reported today that Michael Burry (hedge fund manager) is currently shorting AAPL and buying up FB in its place. Based on the flow near EOD, there were a lot of 140s put being bought up with some significant money put into the 139P weeklies. Keep an eye on the 148 level (HOD on Friday – mother candle), or backtest 145 level, as it can test 150 (9DMA) to 153 level resistance. We will consider putting if AAPL fails to hold above the 145 level, it can pull back down to 141 to 138 level support.
Contract Suggestion:
Above 148 or B/T 145 level: 150C 05/20 (79.4K Volume @ 0.96) or 148P 05/20 (19.2K Volume @ 1.65)
Below 145 level: 142P 05/20 (10.7K Volume @ 1.50) or 140P 05/20 (45.3K Volume @ 0.99)
$JD – The stock was up 0.56% after hours. JD is set to report their quarterly earnings report on Tuesday (05/17) pre-market with the weekly expiration pricing in a 6pt move in either direction. Yesterday’s futures fell after China reported the negative impact on the Chinese economy and is likely this will impact the earnings report for any of the upcoming Chinese stocks. On the daily timeframe, JD continues to find rejection at the 9DMA (52.90) and despite the bounce off the low of 46 last week, we lack a continuation on the bullish side. There is a gap to be filled from 54 to 55 if there’s a positive reaction to JD’s earnings. Keep an eye on the 53 level, if JD can break above with volume, it can test 54 to 55 (gap-fill) level resistance. Above 55 levels, it can test 57 to 60 level resistance. We will consider puts if JD fails to hold above the 51 level, as it can pull back down to 50 to 46 level support. Below that can drop down to 41 to 38 level support.
Contract Suggestion:
Above 53 level: 55C 05/20 (1.7K Volume @ 1.59)
Below 51 level: 49P 05/20 (677 Volume @ 1.94) or 48P 05/20 (2.3K Volume @ 1.63)
$FB – The stock traded up 0.71% during market hours. During Monday’s trading sessions, FB was showing relative strength for the majority of the day but lost some of that relative strength near the end of the day. On the daily timeframe, FB has been trading within a falling wedge with a breakout above the 207 level (near 50DMA) but there’s a gap that needs to be filled from 185 to 181. The flow was bullish towards the majority of the morning into those 210C but near the end of the day, a lot of 200P came in. Depending on how the fed’s spoken tomorrow, we will likely see a direction in the market into OPEX (on Friday). Keep an eye on the 207 or backtest 200 level, as it can test 210 to 215 level resistance. Above 215 level, it can test 220 to 224 level resistance. We will consider puts if FB fails to hold above the 200 level, as it can pull back down to 194 to 190 level support.
Contract suggestion:
Above 207 or B/T 200 level: 205C 5/20 (24.6K Volume @ 2.89) or 210C 05/20 (32.6K Volume @ 1.40)
Below 200 level: 195P 05/20 (11.6K Volume @ 3.05) or 190P 05/20 (10.1K Volume @ 1.71)
***NEWS TO LOOK OUT FOR THIS WEEK***
- Powell speaking on Tuesday (05/17) at 11am PST/2pm EST with other feds
- Unemployment claims data on Thursday (05/19) at 5:30am PST/8:30am EST
- OPEX on Friday (05/20)