06/09/2022 Watchlist Chart

06/09/2022 Watchlist Chart

 

Watchlist for Thursday, 06/09/2022

On Wednesday, $SPY gapped down as expected and gave up the 413s support. 410 remains to act as current light support. Before the close, We mentioned that the MOC imbalance was $850M to the sell-side. Futures are currently down -0.14%. We’ve taken profits on the majority of my hedges.

 

$SQ

Levels Above 87: 91, 95, 100, 102 (50DMA)
Levels Below 87: 82, 78-76, 71, 65 to 78 to 76 level support. Below that can drop down to 71 to 65 level.

Contract Suggestion:
Above 87 level: 90C 06/10 (4.5K Volume @ 0.57)
Below 82 or 87 rejection: 80P 06/10 (1.8K Volume @ 0.75)

Analysis
On the daily timeframe, SQ attempted to break out of the wedge but was quickly rejected at the 87 levels again which has acted as a strong resistance since last week. There was some flow into the 80P of next year that came in during Thursday’s trading sessions, well rather more long-dated puts than calls.

 

 

$JD

Levels Above 67: 70 (50DMA), 73, 75 (100DMA), 80
Levels Below 67: 65, 61-58, 56, 50

Contract Suggestion:
Above 67 level: 70C 06/10 (1.4K Volume @ 0.58) or 70C 06/17 (3.6K Volume @ 1.58)
Below 65 or 67 rejection: 65P 06/10 (2.3K Volume @ 2.19) or 62.5P 06/10 (1.16 Volume @ 1.31)

Analysis
On the weekly timeframe, strong break out this week for Chinese stocks (+653% profits taken on BABA) and if JD can close above the 67 levels, we can see a strong continuation into next week. However, caution is advised if 67 can’t hold as it’s getting overbought and net premiums have dropped about 12% after today’s run.

 

 

$UPST
Levels Above 43: 48, 54, 66 (gap fill)
Levels Below 43: 40, 36, 32, 25

Contract Suggestion:
Above 48 or B/T 43 level: 45C 06/10 (1.1K Volume @ 1.32) or 50C 06/17 (1.5K Volume @ 1.41)
Below 43 level: 43P 06/10 (12K Volume @ 1.86) or 42P 06/10 (734 Volume @ 1.40)

Analysis
UPST has been receiving continuous bearish flow since last week and those long-dated expiration is being bought up, especially the 35P 10/21. On the daily timeframe, UPST formed a double top at the 54 level,s and with the daily moving averages curling down, we can see a re-test of 36 if the market has a negative reaction to CPI this Friday.

 

 

$CAT
Levels Above 227: 232, 238, 244, 249, 254
Levels Below 227: 223, 217 (50DMA), 212-210

Contract Suggestion:
Above 232 or B/T 227 level: 230C 06/10 (2.7K Volume @ 2.37) or 235C 06/10 (545 Volume @ 0.59)
Below 227 level: 225P 06/10 (1.4K Volume @ 0.80)

Analysis
During Wednesday’s trading sessions, CAT was showing relative strength as evidenced by closing near the high of the day. It managed to fill the gap from the previous gap down back in April 2022 and is close to forming a double top if we see a continuation into Thursday to test 238 level resistance. Based on the weekly timeframe, if CAT can close above 227 this week, it can set up the 3 white soldiers’ pattern to a test of 244 next.

 

 

 

***NEWS TO LOOK OUT FOR THIS WEEK***

 

  • Unemployment Claims Data on Thursday (06/02) at 5:30 am PST/8:30 am
  • EST Core CPI for May 2022 on Friday (06/10) at 5:30 am PST/8:30 am EST

 

 

 

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