07/05/2022 Watchlist Chart

07/05/2022 Watchlist Chart

 

Watchlist for Tuesday, 07/05/2022

 

On Friday, $SPY had a solid 373-374 support test and hold, to begin the 380-383 resistance test. If it can break and hold that range, look for a test of 385.4 (0.382 level), and 390-393 above that. Before the close, We mentioned that SPY puts were being sold, and the MOC imbalance was +$1.4B (buy), futures are up 0.34% since.

 

 

$ES (Futures) – Pivot: 3809 | Levels Above: 3830, 3840, 3872, 3900 | Levels Below: 3793, 3776, 3743, 3711

 

 

$BABA

Levels Above 114: 119, 121 (200DMA), 123, 127, 130
Levels Below 114: 110, 106, 102-100

Options Recommendations
Above 119 or B/T 114 level: 120C 07/08 (4.8K Volume @ 1.95)
Below 114 level: 110P 07/08 (1.1K Volume @ 1.29)

Analysis
On the daily timeframe, BABA continues to ride those daily moving averages as dynamic support after two rejections near the 200DMA (121.63). The flow is still fairly bullish with money flowing into the 115C 7/8 during Friday. Based on the weekly timeframe, BABA broke out of the month’s long downward channel and had a backtest to validate that breakout for a potential reversal from lows. Net premiums remain up, last +$24.61M.

 

 

 

$AMZN

Levels Above 109: 112 (0.382 level), 114, 116 (50DMA), 118
Levels Below 109: 104, 101 (2-yr low), 98, 94, 91, 84, 81 (covid low)

Options Recommendations
Above 109 level: 110C 07/08 (27.4K Volume @ 2.15)
Below 104 level or 109 Rejection: 108P 07/08 (8.5K Volume @ 1.73)

Analysis
On the daily timeframe, bulls are still trying to make sure AMZN does not break the 101 level which is the neckline for the head and shoulder pattern (bearish reversal). 107C 7/8 were being bought towards the end of the day, but net premiums remain down, last -$134.59M.

 

 

 

$TSM

Levels Above 78: 79, 80 (gap-fill), 83 (gap-fill)
Levels Below 75: 72, 69 (these will all be 2-year lows)

Options Recommendations
Above 78 level: 80C 07/08 (1.2K Volume @ 0.43)
Below 75 level: 74P 07/08 (2K Volume @ 0.65) or 70P 10/21 (955 Volume @ 3.90)

Analysis
On the daily timeframe, TSM gapped down twice after failing the 85 key support. On the 1-hour timeframe, TSM has been forming a bear flag, so keep an eye out for a potential breakdown. Unusual activity on the 80P 10/21, signaling more potential for bearish bets. Net premiums last -$5.56M.

 

 

 

$AAPL

Levels Above 138: 141, 145 (50DMA), 150
Levels Below 138: 135, 134.6 132

Options Recommendations
Above 141 or B/T 138 level: 140C 07/08 (28.3K Volume @ 1.71)
Below 138 level: 136P 07/08 (11.5K Volume @ 1.21)

Analysis
Despite the green day on Friday, 135P 07/22 were being bought up, and net premiums remain down, last -$47.89M. On the daily timeframe, AAPL is approaching some trend-line resistance, so traders may be betting on an impending rejection.

 

 

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

 

  • FOMC minutes on Wednesday (07/06) at 11 am PST/2 pm EST
  • Unemployment Claims Data on Thursday (07/07) at 5:30 am PST/8:30 am EST
  • Non-farm payroll for June 2022 on Friday (07/08) at 5:30 am PST/8:30 am EST

 

 

 

 

Leave a Reply

Your email address will not be published.