Stock Market Watchlist 23 Nov 2020
From the Stock Market Almanac “Trading The Thanksgiving Market”
For 35 years, the “holiday spirit” gave the Wednesday before Thanksgiving and the Friday after a great track record, except for two occasions. Since 1988, Wednesday-Friday gained 18 of 31 times, with a total Dow point gain of 601.32 versus Monday’s total Dow point loss of 546.19, down 14 of 21 since 1998. The best strategy appears to be coming into the week long and exiting into strength Friday.
TSLA – (long swing) – upgraded this morning by Wedbush, raises it’s price target from $560 to $1,000. Now this won’t happen overnight but over time I could definitely see TSLA doubling again. Last week was a huge week for TSLA with S&P 500 inclusion which I covered the meaning and potential impact in this video: https://youtu.be/fPOncxCYROg / Full disclosure: I am still positioned long via $555 Call expiring December 18th, 2020, and I plan to close it much before 12/18. TSLA is expensive to play on options due to it’s high share price. If we get momentum similar to last week’s $100 move, a weekly or next week expiration could work for a day trade or scalp. These short term expirations are dangerous to hold overnight!
Key levels to watch and set alerts on:
Friday’s low of day which was 489.06 / below that Thursday’s low of 487.57 / if we start cracking below those levels then be cautious. Under that, next levels of support are 479, then 464 area
Friday’s high of day which was 502.50 / Thursday’s high of day 508.6112 (also ATH – all time high) / if above that we are looking at $515 / $524 / $538.75 –pre-market highs of TSLA’s split announcement on August 1st, which you can only see in after-hours chart (won’t show on daily chart) breaking above this level opens up the psychological target of $550+
SQ – (long swing) we played SQ last week via $200 Calls successfully and it’s on watch this week again! Full disclosure I am long SQ $220 Call out to January 15, 2021. SQ benefits from the Bitcoin boom as they have the option for CashApp customers to purchase BTC and other crypto’s directly. Mizuho analyst Dan Dolev upped his price target from $225 to $300 this morning, as he states “Cash App digs into geographies where PayPal enjoys popularity”
Key levels to watch and set alerts on:
SQ is currently up pre-market (8:12Am as my writing) and it’s pushing right above last weeks high 200.99 and 3 weeks ago’s ATH – all time high at 201.33 / above that level we’re looking at $204.09 (pre market highs from Monday, November 9th – the day “positive” vaccine news came out and market gapped up huge)
Above that level we’re looking at $210 short term, and $220 above that
BBY – (earnings play – higher risk) – ER is on Tuesday morning BMO (before market open) –Full disclosure: I am long BBY $120 Call expiring December 18th, 2020. I alerted this play in our Discord chat Friday as I believed Best Buy would have some momentum going into their Earnings Report since technology sales have been through the roof due to stay-at-home schooling and work, so people have been updating their at home tech. Options data says November weekly 119 straddle is priced for a move of 7% into the expected release of results. This means options players are pricing in either a 7% DROP or 7% GAIN from $119 level, which brings it to $110.67 or $127.33
Key levels to watch and set alerts on:
as of this writing BBY is up pre-market. First level to watch is above Friday’s high of 120.74 / above this level we’re looking at 123.21 / 124.89 (all time high) / $127.90 (pre market highs from Monday, November 9th – the day “positive” vaccine news came out and market gapped up huge)
WKHS (long swing) – I alerted WKHS long position on November 18th at a break above $21.22 / Full disclosure: I am long shares of WKHS (not in any options with this name) We closed Friday Nov 20th at 25.78 – WKHS is also up pre-market at the time of this writing.
Key levels to watch and set alerts on:
long swing is invalidated below Fridays low of day 23.15
Friday’s high of day 25.87 / (currently above in pre-market, see how it holds, but it’s up on the back of all EV’s doing well)
If above that next level to watch for upside target is $30.59 and $30.99 (ATH – all time high) which was my initial target for my long swing
MU (long swing) – so this is an interesting one because I had alerts on this stock that went back over a year or more. Full disclosure: I am long $65 Call expiring December 18th, 2020. I remember trading this name and getting frustrated because it would never break above it’s range. I ended up taking it off my watchlist and one day last week it started hitting alerts, I didn’t react right away as I was busy with other positions, as I should have because it ran another $5-7 dollars from those $55 area alerts
Key levels to watch and set alerts on:
Friday’s high of day $62.635 (52 week high) / Friday’s low of day $61.35
Above this level we’re looking at $64.66 (all time highs hit back on May 28th, 2018) / then psychological $70-$75 level on momentum
