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Stock Watchlist 5/4: SPY, AAPL, DKNG, TEAM, MOH, DXCM, TECH, CHK

Thursday/Friday last week I was focused on the wrong things and it cost me a bit. April was another strong month for me, but I need to re-focus on individual names and not let myself get caught up in the noise of the indexes. Believe it or not, there are still quality names making/setup to make new 52 week highs. Here's my list as we start the week:

SPY - Only because I'm using it as a hedge against longs right now. A close below the daily chart uptrend on a failed late-day 5-minute chart reversal on Friday was primarily the reason I added back puts to hedge longs. Some could argue a bear flag breakdown. Here's a great article from AllStarCharts on a macro-scale view for May. I've been bullish since mid-March and it has paid quite well, but now is the time to exercise caution on longs or at least build in hedgies in case the trend fail confirms lower; until we reclaim 290 or setup a base lower. I'm long puts.

AAPL - Only because I attempted to day-trade it on Friday off base breakout attempts that both failed. I'm still long calls as I hedge with SPY puts mentioned above. A few weeks ago, these b/o's would have went. The action shifting gears is really what's worth noting here; as my goal is not to be right to boost my ego, but to make money. If the action shifts, so do my positions. At least I try to not let my ego get in the way. It doesn't always happen. Knowing my risk levels going into a trade helps immensely. That said, the daily chart still closed above the trend line and confirmed resistance around 300. Those are the sweet spots to watch in the coming days to see which way it breaks for the next trade. Either a b/d towards 270/260 or a b/o towards 310/320. I'll adjust my position accordingly. There were plenty of analyst upgrades into the 300's on Friday morning, post-earnings, at least worth noting.

DKNG - Draftkings finally closed above 20 post-merger. It's the only pure-play sports gambling stock out there. As sports start to come back this may see a Virgin Galactic (SPCE) type of run. Risk guide 18 for me. I added back calls on Tuesday after selling into the Monday gap up; once the support firmed at that level. Crazy gap ups will be sold into while attempting to dip buy until it builds a chart worth squeezing out SPCE style. A push back towards 22 will be a start. Not many shorts yet. Need to let this trade out. Earnings are May 15th, but like SPCE, their first earnings report post-merger may not impact trading much. It's potentially the new cool/cult stock.

TEAM - Testing a 52-week breakout. Needs to build above 155 one day this week and close there. Swing trade chart using the same level as risk guide. Atlassian is post-earnings.

MOH - Another post-earnings stock. Molina is a healthcare name that I'm watching for the daily chart continuation over 175 using 160 as the risk guide for a swing trade. This has the potential to be a longer-term b/o because of the support build above 160 on the weekly chart. Daily and weekly charts below for review.

DXCM - Dexcom beat on both revs and earnings last week and is setting up to continue making new 52 week highs. Looking for a continuation move over 345 to start and 350 to add using 325 as risk guide or to flip to short.

TECH - Post-earnings breakout attempt. They manufacture/distribute a lot of biotech supplies. I will use 215 as risk guide in case momentum kicks in.

CHK - Bankruptcy very close unless they pull an equity/bond deal out of their ass. Maybe that's why they did a reverse split? Last chance to lure a potential toxic convertible note with a higher stock price with room to drive it down. Either way, I'm bearish here. I bought puts last week, sold half on Friday and continue to hold the rest as I think this goes sub 10 soon. 15 & 12.5 acting support for now, but once those give way a flush into single digits should come relatively quickly.

A few others:

BAND (close over 90)

GILD (thru 85 or downtrend fail)

ODFL (over 150)

WING (trend is super strong for now)

MRNA (daily chart flagging - needs to get back over 50)

Happy Trading!

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