Everything is still on the menu; check out my Weekly-Daily Watch-list in the DD Sub-page… Update on the Watch-list! Also, I might add some new tickers to the list. So keep an eye out! Since it’s a Weekly and Daily List, I’m going to keep updating the original post… Original Post
NEWS TO LOOK OUT FOR THIS WEEK:
–FOMC on Wednesday
–Unemployment Data on Thursday
–OPEX on Friday
Watch-List: AMD, TWTR, ROKU, NFLX, MRNA, NKE, AMZN, TSLA, SPY,
ADDING: NVDA, SOFI, *AFRM
SOFI: The Stock is up 13.45% during market hours but was down 0.82% after hours. Decisive break out for SOFI, numerous upgrades from analysts. SOFI broke out from wedge with above-average volume and closed for a solid bullish candle above 17.77. Looking for 18.5 HOD or test 18 level, as it can test 20$ resistance. Huge support at 16$
Calls above 18.5 level: 19C 10/15 (19.1k Volume @.38) 20C 11/19 (24.4k Volume @1.23)
Puts below 17.77 level: 17.5P 10/15 (8.1k Volume @.25)
NVDA: Stock fell 0.65 during market hours and fell .32% after hours. Showing strength at open but faded down. Daily chart holding strong with overall trend-lines. Long Wick rejection on the daily is bearish, but 205 level is essential. NVDA needs to keep above 205 or hover around. Calls look much better at 205 Level. Test Resistance levels 210 and 212.
Contract Suggestion: Calls Above 208 level or back-test 205: 210C 10/15 (19.3k Volume @1.91)
Puts below 205 level: 220P 10/15 (6.8k Volume @1.19)
AFRM: Stock fell 4.36% during market hours. Rejection at 147 level. I’m expecting heavy consolation and continue around lower levels, with or without market conditions. This Stock has run its course… More Gaps to Fill than I like to mention. So, I’m looking for PUTS, like I said last trading week… God, that AI is good… If we see weaker price action, the downside is going to be below the 132 level. If AFRM fails to hold above this level, it can and will see a pullback down to 127-123 level. Even worse, price action and we will see another gap fill at 120-118 level for support. However, if the Stock does continue to trend and not consolidate as heavily, the Calls at ATH 147-141 will be a front runner as I expect it to continue and test the 149 level.
Contract Suggestion: Calls above 141 Level: 145C 10/15 (16.3k Volume @2.50)
Puts below 132 level: 130P 10/15 (5k Volume @3.60)
$MRNA Calls > 314.11 : : 315C 10/15(3k Volume @5.90) | Puts < 297.54
$ROKU Calls > 328.75 | Puts < 319.19
$AMD
- Calls above $105, $106, $107
- Puts below $104.50 $104, $103
$AMZN
- Calls above $3260: $3280, $3300
- Puts below 3240 $3220, $3200
$TSLA
- Calls above $795: $800, $804
- Puts below $785 $780, $775
Here is some charts supported by TrendSpider:
Market Breakdown: US Equity Markets and Global Markets were able to shake off early selling pressure but fell back on the defensive side later in the trading day. Columbus Day Holiday in the US kept the volume relatively low. Southwest Airlines flight cancellations and reports of missed debt payments by the Chinese Property Firm Evergrande casting a shadow over global risk sentiment. US equity markets were able to rebound from early lows but dropped late in the day.
So, if you haven’t been living under a rock, you most likely noticed that it has been a roller-coaster ride this fall for investors and traders, which is not unusual as September and October have historically seen a spike in stock market volatility. Since early September, the major equity indexes have produced several consistent performances. Last week was no different, with another significant selloff to start the five days, followed by a just as notable rally. For the five days, the Dow Jones Industrial Average and the S&P 500 were up 1.2% and 0.8%, respectively, while the NASDAQ Composite was flat and the small-cap Russell 2000 was down 0.4%. This morning, the futures indicate some modest selling after last week’s slightly positive showing for stocks.
On Friday, it was a rather lackluster performance for the averages mentioned earlier, as a positive reaction to the news that Congress had voted to extend the debt-ceiling deadline to December was offset by a much weaker-than-expected report on September jobs creation from the Labor Department. Specifically, nonfarm payrolls increased by 194,000 positions last month, while the consensus expectation was calling for the creation of more than a half-million jobs. Perhaps, the report, which also showed a drop in the unemployment rate to 4.8%, a decline in the labor force participation rate, and a spike in the average hourly wage, had some investors thinking that it may make the Federal Reserve pushed back its bond-buying tapering and that is why the market held up fairly well during the week’s final session. The Dow 30, S&P 500 Index, the tech-heavy NASDAQ Composite, and the Russell 2000 finished only nine, eight, 74, and 17 points lower, respectively, even with the disappointing jobs data.
Sometimes lost in some of the swift and at times pronounced shifts in daily and intra-day trading has been the sector rotation on display in recent weeks. The driving force behind the rotation has been Treasury market yields, specifically the benchmark 10-year Treasury bond. When the yield moves higher, often on inflation concerns, the cyclical stocks are in demand. The yield topped the 1.60% market last week, and the financial, energy, and materials sectors moved higher. On Friday, the Dow Transports did very well, fueled by a strong performance from the railroad stocks. The thinking on Wall Street is that the buildup of containers at ports that need to be shipped around the country will allow the railroad companies to raise rates, especially as the holiday shopping season approaches.
Conversely, the rising yields have hurt the high-growth technology and small-cap stocks, which were a big reason why the NASDAQ and Russell 2000 under-performed the Dow 30 and S&P 500 Index on Friday. The stocks of the semiconductor producers have been weak in recent trading. Traders are sensing that with yields likely on the rise in the coming months, this trading pattern may be revisited quite often over the next few months.
Looking to the weeks ahead, the big news will be the commencement of the third-quarter earnings season, which kicks off with the latest quarterly results from banking giant JPMorgan Chase (JPM) on Wednesday morning before the opening bell. That report headlines a busy few days of earnings news from the big banks. These reports may also provide more clues about how the U.S. economy may fare over the remainder of this year, and in 2022, banking giant Goldman Sachs (G.S.) came out with lowered GDP forecasts for 2021 and 2022 this morning. The banking stocks, as noted above, have fared well in recent weeks, as an expected uptick in lending rates would likely help the earning power of the financial institutions. Traders see that Wall Street may need a solid performance from Corporate America over the next month to offset a growing “wall of worry,” which includes the COVID-19 Delta variant, the contentious atmosphere on Capitol Hill, debt and growth concerns for China’s economy, a possibly more-hawkish Federal Reserve, and last, but certainly not least, inflation worries and continued supply chain disruptions.
The investment community will also be watching the business beat very closely, as several important reports are due this week, including the latest readings on consumer and producer (wholesale) prices. Given the inflation, as mentioned above, concerns, these reports are expected to be closely monitored by the Federal Reserve. Speaking of the central bank, the minutes from its latest FOMC meeting will be released on Wednesday at 2:00 P.M. (EDT), which may provide some insight into the Fed’s thinking on monetary policy. Also on the calendar, this week is the latest report on retail sales, which comes before trading on Friday morning. The pricing and sales data may also focus on some of the consumer discretionary stock later this week.
On a side note, investors should be aware that Merck & Co. (MRK) said this morning that it has applied for U.S. emergency use authorization for molnupiravir, its tablet used to treat mild-to-moderate patients of COVID-19. If approved, molnupiravir would become the first oral antiviral medication for coronavirus disease. The pill, which would be taken at home, could halve the chances of death or be hospitalized for those most at risk of contracting severe COVID-19. Shares of Merck, which have been on fire since the news of the pill broke, are relatively unchanged in pre-market action. Huge Shout-out to Fidelity, TrendSpider, and Twitter for the free market data… Make sure to check back on my Original Post
*High-Risk High-Reward!