06/10/2022 Watchlist Chart

06/10/2022 Watchlist Chart

 

Watchlist for Friday 06/10/2022

 

On Thursday, $SPY gapped down as expected, broke the 410 level, and plunged towards 400 (psychological support). Before the close. We mentioned that the MOC imbalance was $3.2B to the sell-side. We proceeded to fall further, with futures currently down -0.27% after hours.

 

 

$$LOW

Levels Above 193: 195, 197 (50DMA), 200
Levels Below 193: 187-184, 179

Contract Suggestion:
Above 195 or B/T 193 level: 200C 06/17 (@ 1.92)
Below 193 level: 190P 06/17 (@ 2.61)

Analysis:
On the daily timeframe, LOW was one of the few stocks that were showing relative strength despite the market sell-off. On the daily timeframe, LOW attempted to break out of the flag but was quickly rejected (second time this week) at the 50DMA (197.65) which was acting as a dynamic resistance. Long-dated puts were bought at the 170P 09/16 as it’s betting for CPI to have a negative reaction. Overall, LOW is in a downtrend but still within an inside week on the weekly timeframe.

 

 

$NVDA

Levels Above 178: 183, 189, 194, 197-200
Levels Below 178: 176-171, 165-162

Contract Suggestion:
Above 183 or B/T 178 level: 180C 06/10 (@ 3.40)
Below 178 level: 175P 06/10 (@ 1.13)

Analysis:
There was significant flow into ITM 190P next week that came in near the latter half of the day despite AMD having analyst day on Friday (06/10). On the weekly timeframe, if NVDA fails to close above 183, we can see a re-test of the triple bottom at the 162 to 157 range next week with FOMC on Wednesday (06/15).

 

 

$META

Levels Above 182: 186, 190, 194, 200
Levels Below 182: 175, 168, 159-156

Contract Suggestion:
Above 186 or B/T 182 level: 190C 06/10
Below 182 level: 180P 06/10

Analysis:
Like most big tech, they were sold off in the latter half of the day with the market sell-off ahead of the CPI report on Friday (06/10). On the weekly timeframe, META continues to find major rejection at the 200 level as evidenced by multiple long top wicks at each attempt and that would be the best place for calls once it can break above that volume. There was significant volume into the 195P 6/17 betting on more selling off. On the daily timeframe, META is approaching a key support level of 182 level, as this was a major bounce area this past few months, which would be a good bounce play if the market holds.

 

 

$TSLA

Levels Above 730: 744-750, 770, 786, 800
Levels Below 714: 700-686, 675-660, 644

Contract Suggestion:
Above 730 level: 750C 06/10 (@ 3.75)
Below 714 level: 690P 06/10 (@ 4.05)

Analysis:
On the daily timeframe, TSLA attempted to break 770 (hard resistance) again but was met with the same resistance again. We have yet to see the death cross-play out, as TSLA did not sell off as much as the other big tech. TSLA can be a potential candidate for calls if market dips get bought up with tech.

 

 

 

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

 

  • Core CPI for May 2022 on Friday (06/10) at 5:30 am PST/8:30 am EST (Core for April was 8.3%, would not be surprised if we see higher for May)

 

 

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