WEEK OF NOVEMBER 2, 2020
Market notes
There is a lot of uncertainty in the market right now as earnings reports are coming out, US Presidential election is this week, and COVID concerns are growing globally. Please take this into consideration this week as it may be best to sit on the sidelines until this new information is abosrbed into the market. I’d recommend trading half your normal size and reduce overnight exposure where possible. That said, with all the mixed messages in the market, there are still good setups to be found.
How to read the charts
Ready-to-go setups
FLEX - Flex Ltd.
Entry: above $14.29
Stop: $13.69
Gap up above 5-day MA after better than expected earnings
(5 minute chart) Look for an entry above Friday afternoon’s high and above the 1 & 2-day VWAPs
Holding above previous daily highs, around $14.00
Additional Info:
Tighter stop option can go below Friday’s low at $13.86
PETS - PetMed Express, Inc.
Short Entry: below $29.25
Stop: $30.06
Regained some ground after earnings sell-off
Look for PETS to get trapped under the 5-day MA and VWAP from earnings
Testing important level on the daily chart (purple line) near $29.00
Additional Info:
Already reported earnings: October 16, 2020
RAD - Rite Aid Corporation
Short Entry: below $8.97
Stop: $9.58 or $9.34
Big sell-off from earnings in September and has consolidated since then. Took out the consolidation lows last Thursday
Below lows on the daily chart (purple line) at the $9.30 level
Additional Info:
Could fill the gap on the daily chart down to $8.30 or retest lows near $7.50
Big short float at 28.96%
RLGY - Realogy Holdings Corp.
Entry: above $11.37
Stop: $10.88 or $10.34 (worst case)
Strong move on earnings last Thursday, back above the 50-day MA and 5-day MA
Looking for a move back above Friday afternoon’s high and the 1&2-day VWAPs (blue lines)
Additional Info:
Will also need to clear the 3-day VWAP from the earnings gap near $11.45 to really get going
Short float 12.92%
Still setting up
The following setups still need some time to develop, so entry and stop targets are areas of focus rather than exact levels
SNBR - Sleep Number Corporation
Entry: not totally clear, possibly above $64.10 or $65.16
Stop: $60.55
Good consolidation (on lower volume) on the daily chart at all-time highs
Above the rising 20, 50, 200-day MAs
STLD - Steel Dynamics, Inc.
Entry: above $31.99
Stop: $60.55
5-day MA needs to flatten out and turn higher
Above $32.00 will also clear the VWAPs from the peak and relevant low
Good longer-term uptrend on the daily chart
Good bounce off the 50-day MA
WATCHLIST
CDNS - Needs some time to consolidate. Might get going above $111.56
CLF - 5-day MA needs to flatten out. Maybe above $8.38 it could get going
DQ - Earnings on Nov. 10. Watching the $193.35 level
ELAN - Earnings on Nov. 6. Good recent consolidation. Watching the $31.60 level.
GLNG (short) - Earnings on Nov. 12. Looking for weakness below the $7.30 - $7.00 area
JKS - Earnings on Nov. 17. Needs to get back above the 5-day MA. Watching the $62.25 level.
LYFT (short) - Earnings on Nov. 10. Possibly below $22.40. Looking for a better entry to setup over the next week or so.
OLN - Earnings on Nov. 4. Found support at 20-day MA, good looking daily chart. Could get going above $17.00.
PHR - Consolidating near ATH.
PLUG - Earnings on Nov. 5. Watching the $15.00 level.
UPWK - Earnings on Nov. 4. Orderly pullback. Watching the $19.30 level.
VERX - Earnings on Nov. 11. Testing the IPO VWAP. Watching for a move above the $25.00 level.
WYNN (short) - Earnings on Nov. 4. Watching the $69.00 level on the daily chart.
YALA - Earnings on Nov. 9. Range has been tightening. Big seller at $9.00 it’ll have to clear to get moving.
