First and foremost, let us take some time to acknowledge today’s holiday. Last year, today, I made a post of the same nature…some notes on stocks that ended with praise for Dr. King. Figure I’d start this one with reverence to him.
“Darkness cannot drive out darkness, only light can. Hate cannot drive out hate, only love can.” – MLK Jr.
One of my favorite stocks to own, $AAPL, released this picture in 2017 in commemoration of the day.
Hell of a quote Dr. King. Hell of a quote.
Now lets talk some of these stock things.
There has been a ton of news over the past few days. From supposed news out of China from Friday, to the President’s statement on Saturday. That statement essentially said “Ok, I’m playing hardball. But I’m willing to compromise on DACA if you give me my wall.”
What I posted on StockTwits after his statement remains the truth. No progress was made. He wants a wall of 5.6 billion dollars against a national debt of 21 trillion dollars. Yes he’s throwing the stiff-arm…but that ratio is absurd. Just give it to him.
But right now, with all the news, let us get back to technical analysis. News analysis says we open down tomorrow. At the time of this writing, on low volume, the ES_F (S&P 500) futures are down 8.25. It would not surprise me if we open in the red tomorrow. It is going to be a choppy week, but despite opening in the red tomorrow, I would like to dartboard this and say we chop upwards on the indices until the middle of end of the week where we start to see some downside for a few days.
So the market is gonna crash dros?
No. I didn’t say that. We might need further correction. If you’re an investor now is the time to hold. Don’t even check your portfolio. Unless you’re in higher beta stocks (the risky stuff).
What I will say is, as the options flow comes in and if you follow me or are a member of my room you should not fight the trend of the indices. It doesn’t matter the news on your stock, you will get a better entry and faster profits if you follow the trend of the index your stock of choice is in. With that said….some numbers on the indices and a few stocks to watch
Index Levels and Stocks To Watch
- $SPX -Bullish Mode – Watch 2640 for a reversal to the bear side if volume kicks in
- $NDX – Bullish mode – 6785 level I’m watching for a reversal
- $DJIA – Bullish mode – 23550 for a reversal in short-term trend
- $RUT (IWM) – 1394 reversal level to sell off. bearish short-term trend.
- $PCG – great technicals with nice call flow #drosflow
- $HUD – flow not as pronounced, but OI bullish and nice T.A. – #drosSeesh
- $MAXR – technical play – #drosplay
- $WTW – bullish unusual options activity (UOA) – #drosflow
- $FRO – bullish UOA – #drosflow
- $NIO – bullish UOA (with time though , AUG19 $14 Cs) – #drosflow
- $XHB – super bearish put flow on Friday – #drowflow
- $XLF – FEB19 $26 Cs – #drosflow
- $CPE – FEB19 $8 Cs – #drosflow
- $ET JUL19 $17.5 Cs – stock replacement – #drosflow
- $JEF MAR19 $20 Cs – #drosflow
- $DVN APR19 $30 Cs – breakout imminent #drosflow
That’s all for now, I’ve got a night with the lady to attend to. I’ll see you guys tomorrow.
Trade safe. And remember the men who have come before us and given us all their ALL, so we can sit around and do this … stuff.