Watch list update - December 4, 2022
$APPS $DKNG $DOCN $GWRE $PARA $PENN $PGR $WOLF
Recent market improvements have led to an increase in potentially attractive swing trade ideas.
The overall market is not without risk as several indexes are facing significant tests. Read these entries for the bigger-picture market overview and outlook.
Weekend Market Review
Weekly Chart Thread on Twitter
Regardless, there are some individual names setting up very nicely.
Here are some example trading plans.
APPS - Digital Turbine had a significant positive response to the last earnings report and has digested the move well; consolidating near the upper end. It’s tracking above the 8/21 EMAs while the RSI is back in the bullish zone.
This is buyable on a breakout of the recent pivot highs of $19.20 or $20.40 (Orange lines) with a protective stop/loss (Red lines) under the pivot low of $15.56.
Lock in some profit (Green lines) in front of the 200-day MA, which closely coincides with the August pivot high. Trail the stops on remaining shares.
DKNG - DraftKings Inc. is also moving higher out of an earnings move, after a sharp selloff. It’s facing a test of the 200-day MA and downtrend line for about the 8th time now so it’s still guilty until proven innocent. But if it can clear above those levels and stay above there could be a bigger move higher forming.
It’s buyable on a break over recent the range high of $15.88 with a stop below $14.54. Look to trim some and cover risk in front of recent pivots; $17.25, $19.22.
PARA - Paramount Global is testing $20.50 resistance and, if can clear above, has room $24-$27.50 before facing real resistance. This can be bought on a move over $20.50 with a stop/loss at $17.26 to give it some room, or $19.10 to hold it a little tighter. Take some profit in front of the mentioned resistance levels and trail the rest.
PENN - PENN Entertainment, Inc. is trading in a bullish consolidation pattern right at the confluence of the 8/21/200 day moving averages. Buy on a move out of the pattern at $36.29 with a stop/loss underneath $33.51.
Look to take some profit at pivot resistance $39.26, $44.58, $51.80 and trail the stop on the remaining shares.
PGR - Progressive Corporation has been trending above its key moving averages and recently traded into new highs. This one is buyable at current prices with a stop beneath the pivot lows of $127.29 or $120.26. Dips have also been buyable for the most part his year and could offer a better entry.
Not ready yet
DOCN - DigitalOcean Holdings, Inc. is improving but there is no buyable set up there yet. Keep an eye as it approaches the downtrend line, the 50-day MA, and the recent pivot high; $33.37-$33.55.
GWRE - Guidewire Software Inc. is looking better and shows a decent setup. However, it has earnings on Tuesday. So no trade there until afterward.
WOLF - Wolfspeed, Inc. is still recovering from the massive earnings selloff and hasn’t been able to get back above the last earnings gap and the 200-day MA around $92. Several attempts so far have been unable to sustain. Watch for it to get above and stay above that level before a tradeable setup emerges.
As always, remember that risk management is job #1 and proper position sizing is THE most important factor of successful trading.
Trade them well.
***This is NOT financial advice. NOT a recommendation to buy, sell, or trade any security. The content presented here is intended for educational purposes only.
Andrew Moss is an associated member of T3 Trading Group, LLC (“T3TG”) a SEC registered broker/dealer and member of FINRA/SIPC. All trades placed by Mr. Moss are done through T3TG.
Statements in this article represent the opinions of that person only and do not necessarily reflect the opinions of T3TG or any other person associated with T3TG.
It is possible that Mr. Moss may hold an investment position (or may be contemplating holding an investment position) that is inconsistent with the information provided or the opinion being expressed. This may reflect the financial or other circumstances of the individual or it may reflect some other consideration. Readers of this article should take this into account when evaluating the information provided or the opinions being expressed.
All investments are subject to risk of loss, which you should consider in making any investment decisions. Readers of this article should consult with their financial advisors, attorneys, accountants or other qualified investors prior to making any investment decision.
December 2, 2022 4:15 PM
Long: DIA1209C350, IWM, MSOS, NUE, PYPL1216C90, QQQ, SI1216P25
Options symbols are denoted as follows:
Ticker, Date, Call/Put, Strike Price
Example: VXX1218C30 = VXX 12/18 Call with a $30 strike