06/02/2022 Watchlist Chart
Watchlist for Thursday, 06/02/2022
After warnings about staying hedged, on Wednesday, $SPY gave up the key 413-414 support and ended up closing around the 410 support.
Before the close, We mentioned that the MOC imbalance was $2.1B to the buy-side. Futures are currently up 0.10%.
$ES (Futures) – Pivot: 4140 | Levels Above: 4168/4200/4240/4300 | Levels Below: 4105/4090/4050/4000
$PTON – The stock fell 7.31% during market hours and was down 0.31% after hours. PTON was showing relative weakness compared to the overall market as evidenced by closing near low of the day. There was an unusual amount of ITM puts (9/16 14P) being bought during Wednesday’s trading sessions, this could be the anticipation for further drops. Keep an eye on the 13.2 level, if PTON can hold above this level, it can test 13.8 and 14.7-15 (wedge break-out) to 16 level resistance. Above 16, it can test 19 to 22 level resistance. We will consider puts if PTON fails to hold above the 13 level, as it can pullback down to 11 to 8 level support.
Contract Suggestion:
Above 13 level: 14C 06/10 (59 Volume @ 0.45)
Below 13 level: 12.5P 06/10 (86 Volume @ 0.66)
$SQ – The stock fell 6.40% during market hours and was down 0.74% after hours. On the daily timeframe, SQ has been trading within a wedge but was showing relative weakness contributed by BTC drop. There was significant flow into the 80P 07/15 option contract that was bought during Wednesday trading sessions. Keep an eye on the 87 level or back test 82 level, as it can break the wedge to test 90 to 95 (previous support now turned resistance). Above 95 levels, it can test 100 to 104 level resistance. We will consider puts if SQ fails to hold above the 82 level or 87 rejections, as it can pullback down to 76 to 70 level support. Below that is 65.
Contract Suggestion:
Above 87 or B/T 82: 90C 06/10 (1.1K Volume @ 1.64) or 85C 06/03 (2.5K Volume @ 1.19)
Below 82 level: 80P 06/03 (3.2K Volume @ 1.65)
$AAPL – The stock fell 0.09% during market hours and was down 0.48% after hours. On the daily timeframe, AAPL found resistance at the 150 level which was the previous strong support two weeks back. We also see a death cross forming on the daily timeframe (when the 50DMA crosses below the 200DMA) at the 160 level. GOOGL and AMZN have been holding up the big tech, with no participation from FB, AAPL, TSLA, and NFLX. If we see weakness in both GOOGL and AMZN, it can signal a larger pullback in tech. Keep an eye on the 150 level, if AAPL breaks above with volume, it can test 156 to 158 level resistance. Above 158 level, it can test 160 (near 50 and 200DMA) to 165 level resistance. We will consider puts if AAPL fails the 145 level or 150 level rejection as it can test 141 to 138 level support. Below that can test 135 to 123 (double bottom).
Contract Suggestion:
Above 150 level: 152.5C 06/03 (122.1K Volume @ 0.45)
Below 145 or 150 fail: 148P 06/03 (33.2K Volume @ 1.41) or 143P 06/03 (12.2K Volume @ 0.28)
***NEWS TO LOOK OUT FOR THIS WEEK***
- Unemployment Data on Thursday (06/02) at 5:30 am PST/8:30am PST
- Non-Farm Payroll on Friday (06/03) at 5:30 am PST/8:30 am EST