As usual, we scanned the markets after the Monday session looking for potential watchlist additions and changes to sector rotation worth noting. The current watchlist performed as expected. That said, wait for the opening range this morning as futures are trading inside of Monday’s range.
Top 10 Stocks – Weekly Watchlist
These stocks are the stocks that outperformed on Monday, ranked by percent gained intraday. Trail your stops and note the sectors that worked.
| SYMBOL | NAME | SECTOR | CLOSE | CHG | % CHG |
|---|---|---|---|---|---|
| WKHS | Workhorse Group Inc. (WKHS) daily brands | Discretionary | 19.18 | 3.66 | 23.58 |
| CHGG | CHGG – Chegg, Inc. | Discretionary | 85.93 | 4.96 | 6.13 |
| BILI | BILI – Bilibili, Inc. | Communication Services | 46.03 | 2.45 | 5.62 |
| MSFT | MSFT – Microsoft Corp. | Technology | 216.54 | 11.53 | 5.62 |
| TTD | TTD – Trade Desk Inc. | Technology | 475.32 | 24.00 | 5.32 |
| PINS | PINS – Pinterest Inc. | Communication Services | 36.08 | 1.79 | 5.22 |
| DOCU | DOCU – Docusign, Inc. | Technology | 226.28 | 9.45 | 4.36 |
| QDEL | QDEL – Quidel Corp. | Health Care | 293.82 | 11.35 | 4.02 |
| FUTU | FUTU – Futu Holdings Ltd. | Technology | 35.68 | 1.31 | 3.81 |
| DHI | DHI – DR Horton Inc. | Discretionary | 68.32 | 2.16 | 3.26 |
Stocks from the post-market scan. Note the similarities.
- Price is above the bullish 9/21/50d moving averages
- Recent consolidation at these moving averages
- Price action beginning to move higher
- RSI suggest more room to run – moving higher
Square (SQ) is the star performer from this financial industry group. Paypal (PYPL) is also at 52-week highs. Mastercard (MA) also looks bullish.
Above average volume suggests institutions are accumulating shares of SQ. Confirmation that institutions are still active would show RVOL greater than 1.5 ~ 2.0. We’ll watch it during the LIVE session as well.
Semiconductors had a decent showing on Monday. ON Semiconductor is a stock we’ve traded recently. Watch for a bullish follow through day. Swing only if it closes in the upper half of the daily range or at the high of the day.
We’d like to see elevated RVOL > 2.0.
NIO has been highlighted in the trading room the past few days. The stock appears ready to follow through on its bullish move out of consolidation mode into trending mode. Watch for RVOL > 2.0.
Futures are lower (-14 +/-) resting at the 3275 area. As 3300 remains the High Gamma Strike this futures pullback gives us a little breathing room. We’d like to see call positions build up near 3300.
“Spot gamma isn’t picking up much in the way of shifts underneath (call closing, put adding) as indicated by the Vol Trigger which remains at 3170. Due primarily to the decent size in positive gamma the overall data reads as fairly neutral (pointed out in the weekly video) with an edge to grinding higher. That being said I think there can be some interesting short upside volatility plays when we push up against the High Gamma Strike, particularly when VIX remains elevated. This may indicate the market is pricing in a larger upside move than our data would suggest.”
Glenn at Spot Gamma
Join us today in the trading room for our LIVESTREAM broadcastduring market hours, as we navigate the current environment. Watch, listen and trade from 9:20 AM to 4:15 PM Monday through Friday.
Happy Trading,
Vinny
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*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities.
As always, the use of technical and fundamental analysis is encouraged in order to fine-tune entry and exit points to average seasonal trends.
These mentions are stocks that we may or may not decide to trade as outlined in the watchlist. Always use a stop.