Crude oil is up more than 3% this morning. This will likely provide a tail wind for the S&P500 today, as energy stocks see rotation, becoming the next winning picks for traders. Marathon Oil for example is up 3.64% (MRO).
Summary
SPY has potential.
SPY is trading 234.44 this morning as a result. Blocks increase dramatically above this level, so look for a fade at the opening bell. If we move above 239.70 we could run to new all time highs. That’s a big “if”, so watch market internals for confirmation.
Watch List
A few of the stocks on the watch list are gapping higher out of the gate this morning. Do not chase these stocks, as you will likely get a better entry if you wait. Use the trade of the day set up instead.
MOMO is a favorite, however traders have the stock higher in the pre-market. I’ll wait on the TD setup and possibly a fade for entry.
Here is the watch list for reference. Note many retailers report this week. I’d look to short the weak names, as the group is under pressure and will most likely disappoint further. Companies reporting this week are in the comments section bottom right.
Have a great day.
Vinny