08/01/2022 Watchlist Chart
Monday Watchlist – August 1st
On Friday, $SPY ran up to test the 413-414 resistance zone but then rejected and closed below. Expect weakness if it cannot hold above that zone, and strength above. We are personally anticipating a profit-taking period before any further runs and holding that SPXS position mentioned on Friday. Futures are currently down -0.28%.
$CAT
Levels Above 198: 200, 202 (200DMA), 204 (100DMA), 206-210, 212, 217
Levels Below 198: 193 (50DMA), 190, 195 (9DMA), 180
Options Recommendations
Above 198 level: 205C 08/05 (471 Volume @ 2.58)
Below 198 level: 195P 08/05 (167 Volume @3.70)
Analysis
CAT IS forming a big-bodied bullish candlestick pattern, set to report its quarterly earnings on Tuesday (08/02) before the market open. On the daily timeframe, in the past few trading sessions, CAT was trading with increasing daily volume with multiple daily moving averages curling up, giving the bullish sentiment of the stock. CAT is set for a 200DMA (202.56) test if the psychological 200 can break and hold. Net premiums were on the rise, the last +$3.04M.
$TSLA
Levels Above 900: 909.3 (200DMA), 920, 930, 945, 965, 978, 985, 1000
Levels Below 900: 886, 880, 860, 850, 835 (100DMA), 820, 800
Options Recommendations
Above 900 level: 950C 08/05 (17.8K Volume @ 6.35) or 1000C 08/05 (28.1K Volume @ 1.97)
Below 886 or 900 rejection: 850P 08/05 (14.6K Volume @ 9.50) or 830P 08/05 (7K Volume @ 5.55)
Analysis
During last Friday’s trading sessions, TSLA went parabolic as it closed a strong big bodied bullish candle and is set for a 200DMA (909.38) test. The easier trade would be a big volume break above that 200DMA or backtest that 800 level near that 100DMA. The weekly timeframe also confirms that a huge wedge broke out two weeks back as well. TSLA is set to have its annual shareholder meeting on Thursday (08/04) and is set to vote on its 3:1 stock split which could be one factor behind this strong run.
$AMD
Levels Above 94: 95 (100DMA), 100, 102, 106, 110, 114 (200DMA), 118
Levels Below 94: 90, 88 (50DMA), 85, 81
Options Recommendations
Above 95 or B/T 94 level: 98C 08/05 (3.2K Volume @ 2.24)
Below 94 level: 90P 08/05 (7K Volume @ 1.84)
Analysis
AMD is set to report its quarterly earnings on Tuesday (08/02) after the market closes and the weekly options are pricing in a 7-point move. On the daily timeframe, AMD filled the small gap from the June gap down and hit a snag at the 100DMA (94.98) resistance but has the 50DMA (88.69) as a dynamic support. The key thing to watch for AMD is how they address their supply chain issue as INTC and QCOM dropped partially due to that and possibly how that chip bill can impact their future earnings. On the weekly timeframe, the daily MACD flipped green, and as long as AMD can close above that 94 levels this week, it can set up for a move back to 110 range in 1-2 weeks.
$LULU
Levels Above 308: 313 (100DMA), 315, 325, 330, 336
Levels Below 308: 300, 295, 287 (50DMA)
Options Recommendations
Above 313 or B/T 308 level: 315C 08/05 (57 Volume @ 4.30) or 330C 08/19 (83 Volume @ 3.95)
Below 308 level: 300P 08/05 (226 Volume @ 3.10)
Analysis
On the daily timeframe, LULU has been trading in a tight wedge and the past three trading sessions. LULU closed a strong three white soldier’s pattern, however, lacked strong daily volume (potential for a false breakout if the volume is unable to pick up). On the weekly timeframe, MACD flipped green and the RSI looks charged up for a wedge break out.
***NEWS TO LOOK OUT FOR THIS WEEK***
- Unemployment Claims Data on Thursday (08/04) at 5:30 am PST/8:30 am EST
- Non-farm Payrolls for July on Friday (08/05) at 5:30 am PST/8:30 am EST