06/21/2022 Watchlist Chart
Watchlist for Tuesday, 06/21/2022
On Friday, $SPY traded flat and managed to hold the 365 level that We’ve mentioned to watch a bounce towards 373. Futures are up a solid +1.58% currently!
$MSFT
Levels Above 250: 255, 258, 261, 263
Levels Below 246: 241, 237, 233, 230
Contract Suggestion
Above 250 level: 255C 06/24 (4.3K Volume @ 1.76)
Below 246 level: 240P 06/24 (5.6K Volume @ 2.02)
Analysis
MSFT has been showing some relative strength with some flow into (ITM) 240C 07/15 expiration. So far, MSFT is trading within a tight wedge on a daily. On the weekly, the potential for a dead cat bounces unless MSFT is able to close above 255 this week with volume. Net premiums rose from -$11.71M to almost neural on Friday, so that’s a better sign for bulls.
$AMZN
Levels Above 104: 109, 112, 116, 118, 124
Levels Below 104: 101, 98, 94, 91, 84-81 (2-year low)
Contract Suggestion
Above 109 or B/T 104 level: 106C 06/24 (10.3K Volume @ 2.77) or 110C 06/24 (22.9K Volume @ 1.11)
Below 104 level: 101P 06/24 (1.7K Volume @ 0.93)
Analysis
On the daily timeframe, AMZN continues to show resilience in holding above the 101 strong support as the dips continue to be bought when it gets near that level. Unfortunately, if AMZN cannot get above 124 (50DMA), by the end of June, it may form the right shoulder of a head and shoulder pattern. If that happens, then the break of 101 will validate that pattern and then set another leg lower. Net premiums remain in the decline, closing at about -$100M.
$TSLA
Levels Above 644: 660, 675, 686, 700, 714
Levels Below 644: 630, 620, 600, 590, 575
Contract Suggestion
Above 660 or B/T 644 level: 700C 06/24 (21.3K Volume @ 7.00)
Below 644 level: 600P 06/24 (24.9K Volume @ 8.90)
Analysis
On the daily timeframe, TSLA has been beginning to develop a potential h-pattern with a key support zone around the 620 level. There are two scenarios that will happen if TSLA re-tests that 620 level, (1) it will either triple bottom and form a W shape recovery, or (2), it will break that support and set a leg lower. Net premiums remain negative but slightly recovered on Friday.
$AMD
Levels Above 81: 85, 88-90, 94, 97
Levels Below 81: 79, 76, 72-70, 66 (200 WMA)
Contract Suggestion
Above 85 or B/T 81 level: 85C 06/24 (9.5K Volume @ 1.30)
Below 81 or 85 rejection: 80P 06/24 (11.1K Volume @ 2.03)
Analysis
AMD has been taking a beating, giving up the 85 levels, which had continued to provide a strong support structure for AMD (currently at 52-week lows). There was significant flow into the 75P 08/19 expiration as it’s betting on tech to go lower. If AMD is unable to reclaim the 85 levels this week, it can signal more weakness to the low 70s. For now, caution is advised as net premiums have climbed to +$27.65M (up from +$5.28M earlier last week).
***NEWS TO LOOK OUT FOR THIS WEEK***
- Jerome Powell will be testifying on monetary policy at Senate Banking Committee on Wednesday (06/22) at 6:30 am PST/9:30 am EST
- Unemployment Claims Data on Thursday (06/23) at 5:30 am PST/8:30 am EST
- Jerome Powell will testify on monetary policy at the House Financials services Committee on Thursday (06/23) at 7:am PST/10 am EST