JANUARY 25TH
SPY
We are at a very interesting spot here on the SPY gapping overnight we are trading around 265. As I thought the last couple of days the 267 would hold as resistance. We have been trading in a tight range over the last few sessions as options premiums start to come back in, this is pretty common after a big move that we have seen. Shorts think that things are overextended and bulls are starting to become more cautious. As Friday approaches and vol. starting to come off the weekly options are a lot more reasonable for payouts. I wouldn't be surprised to see some more chop today, however, I do think that we do see 267 break eventually catching shorts one last time and roping the FOMO bulls in.
PCG
PCG is a fun one, a stock that has been threatened with bankruptcy due to fires in 2017. Good news came out yesterday and immediately the stock squeezed to close to 100%. With this, you have to think that any short that has been expecting this to go to zero may get squeezed. It is not clear if they will file for bankruptcy if that is the case the equity will most likely be worthless. However with the emotion that is involved in this name lately there lies opportunity. I think that you will find chances for scalps on both sides of the tape today. Long term I still lean more bearish but shorting around these levels is more of a risk than an opportunity in my mind. Unless things become very extended I am not looking to take a swing any time on this name.
CRON, CGC, TLRY
CRON, TLRY, and CGC all weed names that trade with sector momentum usually. CRON I talked about the other day thinking 16.07 would hold well it looks like I was wrong and we continue higher. With that being said there will be some shorts that are caught this name trying to nail the top. The best thing to do is wait, watch this name and look for pullbacks, with shorts looking to get out you will want to look for strength in the pullbacks to piggyback for scalps. CGC looking very nice technically however with a gap in the market I wouldn't be surprised to see weakness early we are in no man's land here on this stock while that will create opportunities for scalps off of the tape, I wouldn't get committed to an idea here. Finally TLRY I would watch this name as it has a lot of shorts involved, however there is a lot more to this name than what you see in the front. Any big squeeze I look to the short side.
As always this is not financial advice and should not be treated as such. Feel free to leave a comment or question I would be more than willing to help or discuss opinions.