WEEK OF NOVEMBER 9, 2020
Market notes
We experienced a massive rally in most major markets (SPY, QQQ, SMH, IWM) this week and was an overall bullish week for stocks. Ideally, the market will slow down a bit to allow stocks to setup a bit more and then make moves to their highs. The semiconductors (SMH) just made new all-time highs, which tend to lead the NASDAQ (QQQ). I’m keeping an eye on a few shorts setups to keep them in my back pocket, but overall, longs are looking good.
How to read the charts
Ready-to-go setups
ADM - Archer-Daniels-Midland Company
Entry: above $48.73
Stop: $46.44 or $47.54
Initial Target: $49.50 / $51.50
Consolidating above the rising 5-day MA for the past two sessions
Back above the VWAP from earnings
Needs to clear the VWAP off the peak, near $48.70 to get going
On the daily chart, we’ve seen nice rallies after touching the 50-day MA. We’re currently consolidating at the 50-day MA
ASAN - Asana, Inc.
Entry: above $23.90
Stop: $22.49 or $21.38
Initial Target: $26.70
ASAN has been in a downtrend since their IPO (purple line), but this was broken this past week
Would be good to see a day or two of consolidation above the 5-day MA, but getting back above the 2 & 3-day VWAPs (blue & green lines on the 5-minute chart) could get the stock moving again.
We could see a move to the VWAP from the IPO, near $26.70. We’ve seen some nice moves in the IPO stocks recently (i.e. PLTR)
BBBY - Bed Bath & Beyond Inc.
Entry: above $22.36
Stop: $20.73
Initial Target: $24.00 / $26.00
Back above the rising 5-day MA and the VWAPs from the recent gap and relevant low
Getting above the VWAP from the peak and recent highs could fill the gap up to $24.00
Additional Info:
Big short float at 58.56%
EXAS - Exact Sciences Corporation
Entry: above $128.46
Stop: $123.56 or $122.20
Initial Target: $135.00
Nice consolidation above the 5-day MA for the past three sessions
Needs to clear the VWAP from earnings and off the peak near $127.80 to get going
GDRX - GoodRx Holdings, Inc.
Entry: $50.79
Stop: $49.21 / $48.43
Initial Target: $52.60 / $54.00
Another IPO stock thata has been in a downtrend since it went public, but has started to break that downtrend line (purple line)
Additional Info:
Earnings on November 12, 2020 (before market open)
WATCHLIST
ADVM - Looks decent above $12.75 with a stop at $11.49. Lower confidence as it is below the 200-day MA.
AEO - Could get going above $14.89 with a stop at $14.11. Some good moves in retail recently.
AQUA - Watching for a move above $24.77 with a stop at $23.37. Testing all-time highs.
BABA - Needs time to setup above the 5-day MA, but finding support at the 50-day MA.
BSX (short) - Monitoring for weakness below the 5-day MA. Bigger support level is at $33.00.
CHGG - Keeping an eye on the $79.00 level with a stop at $74.98.
CLF - Could see a continuation move above Friday’s high of $8.55.
CNDT - Building a good base and got some action from earnings last week. Keeping an eye on it.
CTXS (short) - Big sell off, then bounce. Watching to see how it trades below $116.00.
GPRO - Big earnings gap. Observing for now to see how it holds onto its gains.
HOG - Held onto earnings gap well. Could see continuation above $33.78 with a stop at $32.87.
HWM - Testing all-time highs. Earnings on Nov. 9th.
IGT (short) - Below the 200, 50, 20-day MAs. Good short candidate to keep an eye on. Earnings on Nov. 12th.
KCAC - Broke the recent downtrend. Got going on Friday — looking for a small pullback at around $13.30 before getting involved.
LAC - Starting to move nicely above the 5-day MA.
MCFE - Another recent IPO to watch. Started moving late Thursday last week.
PEIX - Could get going above $7.00. Earnings Nov. 9th.
RKT - Watching this recent IPO as well. Earnings on Nov. 10th.
RVLV - Watching the $19.55 level. Earnings on Nov. 11th.
SBUX - Retesting the recent highs. Could see a good move above $91.29.
SNOW - Good consolidation
YALA - Had issues holding above $9.00, but got a good breakout on Friday. Earnings on Nov 9th.
