07/26/2022 Watchlist Chart
Tuesday Watchlist – July 26th
On Monday, $SPY was rejected right at the 0.618 level (at 397.3) and well right back to test the 390-393 zone. Some decline after hours due to Walmart’s warnings on profit outlook. Algos and net premiums remain bearish, with more direction to come from earnings releases and economic events beginning Wednesday.
$TGT
Levels Above 150: 153, 156 (50DMA), 158, 162
Levels Below 150: 148, 146, 144, 141, 139
Options Recommendations
Above 150 level: 160C 07/29 (208 Volume @ 1.48)
Below 148 or 150 rejection: 146P 07/29 (208 Volume @ 0.21)
Analysis
TGT was down huge after hours due to WMT earnings reaction. This would bode unwell for TGT as they sell premium products and with WMT taking a huge hit to their revenue on cheaper products, this can set for a disastrous earnings potential for TGT.
$CAT
Levels Above 182: 183, 187.5, 191-192, 195 (50DMA), 198, 202 (50DMA)
Levels Below 179: 177, 175, 171
Options Recommendations
Above 182 level: 185C 07/29 (1.1K Volume @ 1.45)
Below 179 level: 175P 07/29 (344 Volume @ 0.86)
Analysis
On the daily timeframe, CAT has been trading within an inside day pattern and was one of the few stocks that were showing relative strength in a choppy market. It’s currently trying to defend the trend-line set from January. On the 4hr time frame, CAT was forming an ascending triangle pattern with a breakout above 182 level if it manages to get enough volume on that break. The weekly timeframe also has CAT forming a rounded bottom as well which can set up for a move back to the 190s as long as 177 holds. Some bearish divergence on the algos.
$CRWD
Levels Above 182: 187, 194, 200 (200DMA), 208, 214
Levels Below 181: 178, 173, 168 (50DMA), 166, 158
Options Recommendations
Above 187 or B/T 182 level: 190C 07/29 (542 Volume @ 2.00)
Below 182 level: 175P 07/29 (176 Volume @ 2.18)
Analysis
On the daily timeframe, CRWD continues to trade in a large bear flag but continues to hold on. It closed a long-legged doji on Monday which shows indecision and an inside week so far on the weekly timeframe. CRWD may continue to chop until either it gets below 173 or above 194 (double top so far on daily).
$AAPL
Levels Above 153: 156, 158 (200DMA), 160, 165
Levels Below 153: 150, 145, 143 (50DMA), 141, 138
Options Recommendations
Above 153 level: 155C 07/29 (31.2K Volume @ 2.71) or 160C 07/29 (33.3K Volume @ 0.92)
Below 150 level: 148P 07/29 (6.3K Volume @ 2.02) or 145P 07/29 (16K Volume @ 1.29)
Analysis
AAPL is set to report its quarterly earnings on Thursday (7/28) after the market closes and the weekly premiums are pricing in a 7-point move. On the daily timeframe, AAPL continues to hold above the 150 level (previous resistance turned support). Algos remain bearish and with net premiums on the decline, last -$47.88M.
***NEWS TO LOOK OUT FOR THIS WEEK***
- FOMC on Wednesday (07/27) at 11am PST/2pm EST with Jerome Powell speaking 30min afterwards.
- GDP Data Release on Thursday (07/28) at 5:30 am PST/8:30 am EST
- Unemployment claims data on Thursday (07/28) at 5:30 am PST/8:30 am EST
- Core PCE Price Index for June 2022 on Friday (07/29) at 5:30 am PST/8:30 am EST