The S&P is pushing down again. Last Thursday it had a big drop, then on Friday price pushed through the lows of the base it had formed prior. Yesterday there was a small rally, but price is pushing down again today. That said, the VIX is up over 11% on the day.
Looking at the stocks that I have left over from yesterday, DKNG looks like the best option. On the daily chart, there’s a nice tight base that has formed over the last 3 days; and looking at the 4h chart, there’s a solid bear rally that’s formed and price is pushing down again today. Looking at the hourly chart, there was a nice 10-candle rally before a drop this morning; the next candle tried to rally a bit but is pushing down as well. I like this short, the question now is where do I get in. I could get in at the day’s lows which is just above the bottom before the rally (with the intention of getting in at a better price) or I could get in at the lows of the base for a more confirmed move. After talking it through here, I’m going to wait for the confirmed move (well put an entry order in at a break of the base) and set an entry order if the numbers match up
The R:R of a straight stock play was only 1.2, but I still like this pushing down if it breaks support, so I bought an option. I simply followed my rule of making sure break even was within my target, and set it to not trigger until price hits $13.65. Hopefully it triggers.
Looking at my screener. There are only 2 stocks that came up — and I just refreshed for the first time today, now, at 10:12. Often, there are only a couple first thing in the morning, but later on (by around now) more stocks have qualified; but not so today. Of the two DWAC — Digital World Acquisition Corp. (sounds like a venture capitalist fund) — looks like it could have a lot of potential. Looking at the daily chart, this has been pushing down since early March, and price spiked down pretty strongly yesterday.
Today, there was a bit of a gap-up, but price still looks overall weak. Looking at the hourly chart, and the retest looks even cleaner. Price pushed down, rallied for a few hours up to resistance and is pushing down slightly right now. If it can break the prior hour’s low, that should be a good entry price. The only thing giving me pause right now is that things look close to oversold on both the hourly and daily chart, and the lows are near lows from November of last year — it’s a pretty major support level. I could take a small, .5% straight stock play to get my feet wet if it triggers. Maybe add to it if it breaks the next support level. I’ll run the numbers and see what that looks like
I tried to pull the trigger here, but my order was rejected due to shares not being available.