07/14/2022 Watchlist Chart
Watchlist for 07/14/2022
On Wednesday, $SPY fell short of reclaiming the 386-387 range, successfully defended the 374-373 support, rejected the 380-383 range, and continues to look bearish under that as We’ve mentioned. An additional level we will be looking at tomorrow will be 378.3 (0.382 level and where trend-line resistance will meet). Failure to hold that will likely result in 377, and another 374-373 zone test. The bearish divergence we’ve been talking about lately is not as prominent after these drops but still exists. Before the close, We mentioned that the MOC imbalance was -$350M (sell). Futures proceeded to fall -0.87% after hours, but have recovered a bit and are currently down -0.51%.
$ES (Futures) – Pivot: 3796 | Levels Above: 3806, 3832, 3865, 3885 | Levels Below: 3706, 3643
$SQ
Levels Above 64: 66, 69, 73, 76 (50DMA)
Levels Below 64: 62, 60, 56
Options Recommendations
Above 64 level: 65C 07/15 (2.5K Volume @ 1.43) or 66C 07/22 (7.8K Volume @ 2.62)
Below 64 level: 62P 07/15 (1.2K Volume @ 0.98)
Analysis
On the daily timeframe, SQ continues to hold onto the bearish pennant. There was some flow into the 66C 7/22, however, the net premiums have gone down, last -$7.58M. Double inside bars on the weekly, indicating that SQ is likely coiling for a big move depending on the breakout of the pennant.
$LMT
Levels Above 410: 415, 419, 426, 435
Levels Below 404: 394, 392.3 (200DMA)
Options Recommendations
Above 410 level: 415C 07/15 (86 Volume @ 1.50)
Below 404 level: 400P 07/15 (79 Volume @ 1.60)
Analysis
During Wednesday’s trading sessions, LMT was showing relative weakness compared to the overall market as evidenced by closing near the low of the day. On the daily timeframe, LMT closed a bearish inverted hammer and can set for a potential test at the 395 level which can act as a support and form a double bottom if held. On the weekly timeframe, caution to bear if a bullish flag plays out.
$TTD
Levels Above 43: 46, 48 (50DMA), 51, 54-56
Levels Below 43: 40, 36, 32, 30, 26
Options Recommendations
Above 46 or B/T 43 level: 46C 07/15 (1.7K Volume @ 0.60)
Below 43 level: 42P 07/15 (696 Volume @ 0.53)
Analysis
During Wednesday’s trading sessions, TTD was showing relative strength until NFLX released news of using MSFT as their ads partner which caused TTD to lose the majority of its gains near the end of the day. On the daily timeframe, TTD has been trading within a descending triangle pattern with a breakdown if TTD fails the 40-level strong support. If TTD loses that 40-level support, it will set for another leg lower.
****NEWS TO LOOK OUT FOR THIS WEEK****
- Producer Price Index for June 2022 on Thursday (07/14) at 5:30 am PST/8:30 am EST
- Unemployment Claims Data on Thursday (07/14) at 5:30 am PST/8:30 am EST
- OpEx on Friday (07/15)