05/25/2022 Watchlist Chart
Watchlist for Wednesday, 05/25/2022
$SPY rejected the 397-400 support, fell, and bounced off the 385-387 support zone, closing down 0.76% around the 395 support. Futures are currently up 0.43% after hours.
$GOOGL – The stock fell 4.95% during market hours but was up 0.69% after hours. During Tuesday’s trading sessions, GOOGL gapped down from SNAP CEO’s comments which pulled NQ down overall, nearing my first buy zone at 2000. On the daily timeframe, GOOGL dip was bought up quickly and closed a strong dragonfly doji with a gap to be filled from 2129 to 2174. Lots of ITM, 2050C weekly expirations came in, which can indicate a big move this week. Keep an eye on the 2144 or backtest 2115 level, if GOOGL can break above with volume, it can start to gap-fill to 2168 to 2174 level resistance. Above that can test 2188-2200. Above 2200, it can test 2220 (near 9DMA) to 2235 resistance. Consider puts if GOOGL fails to hold above the 2215 level, as it can pull back down to 2100-2090.
Contract Suggestion:
(Call/Put Ratio: 0.70)
Above 2144 or B/T 2115 level: 2220C 05/27 (1.3K Volume @ 7.10) or 2250C 05/27 (1.5K Volume @3.70)
Below 2115 level: 2000P 05/27 (3K Volume @ 8.30) or 1950P 05/27 (1.4K Volume @ 4.50)
$CSCO – The stock traded up 0.97% during market hours and was up 0.75% after hours. On the 1hr timeframe, CSCO has a gap to be filled from 44 to 48 level from their earnings gap down. CSCO is attempting to enter into that gap fill as it’s been forming an ascending triangle intraday with increasing volume. Keep an eye on the 44 levels, if CSCO can break above with volume, it can start to gap-fill to 46 to 48 level resistance. Above 48 levels, it can test 50 to 52 (near 50DMA). Consider puts if CSCO fails to hold above the 43-44 rejection, as it can test 41-38 support.
Contract suggestion:
Above 44 level: 45C 06/17 (3.1K Volume @ 0.80)
Below 43 or 44 rejection: 43P 06/17 (611 Volume @ 0.39) or 40P 06/17 (1.8K Volume @ 0.39)
$COST – The stock traded up 1.92% during market hours and was up 0.30% after hours. COST is set to report its quarterly earnings on Thursday (05/26) after aftermarket closes and the weekly expiration is pricing in a 37-point move in either direction. The flow during Tuesday’s trading session had big whales buying up 425C January 2023 expiration (deep ITM). On the 1hr timeframe, COST has been forming a bounced bottom and has a gap to fill from 463 to 489 from the TGT earnings gap down. Keep an eye on the 442 level, if COST can break above with volume, it can test 452 (50MA intraday) to 463 level resistance. Above 463 level, it can test 477 to 482 level resistance. Consider puts if COST fails to hold above the 426 level, as it can pull back down to 406-400 support.
Contract Suggestion:
Above 442 level: 480C 05/27 (481 Volume @3.55)
Below 426 level: 400P 05/27 (989 Volume @ 5.70)
$TSLA – The stock fell 6.93% during market hours but was up 1.01% after hours. On the daily timeframe, TSLA continues to trade in a downtrend with most of the pops being sold off. The 1hr 9DMA (642.20) has yet to catch up with the stock price with shows me there may be further pain down the road. The flow during Tuesday’s trading session has money flowing ITM 650P weekly expiration. Keep an eye on the 630 level, if TSLA can break above with volume, it can test 644-660 resistance. Above 660, it can test 686-700 resistance. Consider puts if TSLA fails to hold above the 618 or 630 rejection as it can pull back down to 600-590 support.
Contract Suggestion:
Above 630 level: 680C 05/27 (10.2K Volume @ 5.00) or 700C 05/27 (55.9K Volume @ 2.48)
Below 618 or 630 rejections: 600P 05/27 (82.1K Volume @ 11.35) or 550P 05/27 (30.3K Volume @ 2.99)
***NEWS TO LOOK OUT FOR THIS WEEK***
- FOMC minutes on Wednesday (05/25) at 11 am PST/2 pm EST
- Unemployment Claims Data on Thursday 05/26) at 5:30 am PST/8:30 am EST
- Core PCE inflation for April 2022 on Friday (05/27) at 5:30 am PST/8:30 am EST