06/01/2022 Watchlist Chart
Watchlist for Wednesday, 06/01/2022
On Tuesday, $SPY bounced off the 410 support and continued to range around the 413-414 zone I’ve been mentioning. Same levels apply, caution is still advised – stay hedged!
Before the close, We mentioned that the MOC imbalance was $4.9B to the buy-side. Futures have been rallying since, and are currently up 0.40% after hours.
$ES (Futures) – Pivot: 4140 | Levels Above: 4168/4200/4240/4300 | Levels Below: 4105/4090/4050/4000
$SHOP – The stock traded up 1.65% during market hours and was up 1.30% after hours. On the daily timeframe, SHOP shows that double bottom around the 320 level with resistance near that 400-level resistance. The daily moving averages are curling up with RSI slowly creeping close to 50 and bullish flow into the 400C weeklies. Above 400, there’s a small gap to be filled from 425 to 439 as well. The big break-out level would be that 400 level to watch out for towards 480. Keep an eye on the 377 level, if SHOP can break above with volume, it can test 391 to 400 level resistance. Above 400 level, it can test 413 to 425 level resistance. Above that can gap till to 439 to 455 level resistance. We will consider puts if SHOP fails to hold above the 365 level, as it can pull back down to 360 to 354 level support. Below that can drop down to 338 to 320 level support.
Contract Suggestion:
Above 377 level: 400C 06/03 (13.8K Volume @ 5.40)
Below 365 level: 350P 06/03 (715 Volume @ 5.30)
$ABNB – The stock traded up 0.31% during market hours and was up 1.34% after hours. On the daily timeframe, ABNB broke out of the falling wedge pattern last Friday. ABNB continues to see increasing daily volume but is lacking significant volume on this move higher. Based on Monday’s flow, there was money flowing into the 125C weeklies, so the flow is more towards the bullish side. Intraday, we see a bull flag forming with a breakout above 122. Keep an eye on the 122 level or backtest 120 level, as it can test 127 (50DMA) to 130 level resistance. Above 130 level, it can test 139 to 145 level resistance. We will consider puts if ABNB fails to hold above the 120 level, as it can pull back down to 118 to 116 level support. Below that can drop down to 113 to 110 level support.
Contract Suggestion:
Above 122 level: 125C 06/03 (1.5K Volume @ 1.29) or 130C 06/10 (895 Volume @ 1.58)
Below 120 level: 118P 06/03 (270 Volume @ 1.92) or 115P 06/03 (715 Volume @ 1.08)
$SE – The stock fell 0.24% during market hours but was up 0.52% after hours. On the daily timeframe, SE is starting to form a dark cloud cover pattern and if SE closes below 81 levels, we could see a quick reversal towards the downside. SE was showing relative weakness compared to the overall market and there was significant flow into the 85P and 84P next week expiration (ITM). This would be a great put candidate if the market reverses lower with quantitative tightening (QT) starting on June 1st. Keep an eye on the 83 levels, if SE can break above with volume, it can test 85.5 to 90 level resistance. We will consider puts if SE fails to hold above the 82 levels, it can test 80 to 78 level support. Below that can test 75 to 73 level support.
Contract Suggestion:
Above 83 level: 85C 06/03 (1K Volume @ 1.90)
Below 82 level: 80P 06/03 (226 Volume @ 1.83) or 76P 06/03 (1K Volume @ 0.78)
***NEWS TO LOOK OUT FOR THIS WEEK***
- FOMC Williams and Bullard speaking at 8:30 am PST & 10 am PST
- Unemployment Data on Thursday (06/02) at 5:30 am PST/8:30 am PST
- Non-Farm Payroll on Friday (06/03) at 5:30 am PST/8:30 am EST