WEEK OF MARCH 8, 2021
Continuing the theme from last week, I still don’t consider it to be the best swing trading environment with the amount of volitility the market has been experiencing. That said, there are a lot of great short-term trading opportunities as well as stocks to buy at discounts if you’re looking for longer holds. As always, manage risk and use smaller size until a definitive trend can be defined on both long and short timeframes. Below are stocks I’m watching on both the long and short side.
WATCHLIST
LONGS
ABNB - Bounced off the IPO VWAP (~$167.50) and reclaimed the 50-day MA. I like the longer-term prospects of Airbnb, may be a good area to start or add to a position
AMAT - Holding up well, above the 50-day MA, strong bounce off the YTD VWAP
ASAN - Experienced a deep pullback to the IPO VWAP (~$29.30) and the stocks large volume shelf ($27-$30 range). Will likely hold this level and see further upside
DIS - Holding support at the $183 level and the YTD VWAP. Positive news as they reopen parks
LYFT - Didn’t seem to be effected by the recent market sell off, holding above $60 level
SNAP - Strong bounce off of trendline and reclaimed the rising 50-day MA
TWTR - Strong bounce off YTD VWAP, filled the gap from earnings
YALA - Big pullback from the highs to the IPO VWAP and prior resistance levels (~$18-$21 range). Will likely find support here and build a base
SHORTS
Most stocks are pretty extended to the downside, especially in the tech sector. My general theme is to look for bounces into resistance / declining 5-day MA, then short weakness. But here are a few of the weaker names I’m watching:
CLSK - Looking for a hold below the $25 level as the 50-day MA will start to roll over in a few days
CRSR - Broke a major trendline, below the IPO VWAP, 50-day MA starting to roll over. Its extended to right now, so will need some time to bounce/consolidate. Also some caution here as this name has a high short float (21%) and could be targeted for a short squeeze candidate
NUAN - The 50-day MA is starting to roll over. If it can hold below the $43 and the 5-day MA, it has room down to around $36 (gap fill and 200-day MA)
OPEN - Missed earnings, got extended to the downside and had a strong bounce to the 3-day VWAP. Looking for a short entry below the 1 & 2-day VWAPs
