Navigating Volatility: Market Reactions and Top Stocks to Watch This Week

What’s up, studs? Kunal here from Bulls on Wall Street! This week, we’re dealing with intense market volatility, as the election news cycle has flipped market trends. We’re digging into the watchlist and market indices, including the QQQ and SPY, to plan for next week’s trading amidst the chaos. With shifting political betting odds and unpredictable moves, we’re diving into the stocks that can bring gains despite market swings.

• • The market faced wild volatility this week, driven by the election cycle and shifting betting odds. Recently, the QQQ and SPY both saw significant pullbacks, falling to their 50-day moving averages. The sudden reversal highlights the challenge of trading in these conditions, where support levels become less reliable as volatility spikes.
  • With the market vollatility and VIX rising to around 23, we’re in a high-volatility environment where support levels may break easily. Use the 50-day moving average as a guide, not an absolute rule, and be prepared for fluctuations that could impact both long and short positions.
• Key Earnings Plays:
  • CVNA (Carvana): Carvana’s recent earnings breakout positions it as a strong day trade candidate. If we see a weak open, look for a red-to-green setup to capitalize on momentum.
  • Tile (TILE): With a strong breakout clearing multi-year resistance, Tile is setting up as an ideal trade. If it pulls back slightly, it could provide an excellent entry for a red-to-green play.
  • MDGL (Madrigal Pharmaceuticals): Reached a key level around 320 on Friday. Give it a rest day or two, then look for a breakout above 320.
  • AMS (American Superconductor): Experienced a breakout with solid volume, putting it on watch for day two of momentum trading.
• Sector Plays and Small-Cap Winners:
  • Snapchat (SNAP): After earnings, Snapchat is consolidating with two inside days. Look for a weak open and red-to-green setup as it approaches its earnings highs.
  • Asana (ASAN): In a bottoming pattern with room to run, Asana could offer swing trade potential if the market holds steady.
  • Amazon (AMZN): Trading at a critical $200 level, potentially a sell target for founder Jeff Bezos. Watch for another 5-10 million shares to clear this level and gauge its strength.
  • Dell (DELL): With strong day trading range and market favor following SMCI’s issues, Dell presents an appealing intraday setup.
• Other Plays to Watch:
  • TGTX (TG Therapeutics): With a recent breakout and strong volume, TGTX has promising range for day trading. Look for momentum off a weak open.
  • Netflix (NFLX): Despite market weakness, Netflix has held its levels better than most large caps. It’s worth monitoring if it tests the 760 level again.

With heightened market volatility, caution is key. Keep cash on hand and consider hedging with futures or options on the market volatility  if the VIX spikes further. Focus on earnings plays and avoid the high-volume mega-caps, which may be too choppy to trade effectively. Join us in the chat room as we tackle this unpredictable market together. Stay sharp, stay nimble, and let’s make the most of these setups!

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