What an interesting first week of the year, pretty amazing stuff. Let’s go right into the charts. First, we’re going to take a look [00:49] at my good old friend, MarketWatch. I’m updating some stuff here [01:00]. DXC looks good. We’ve got a leader, nice pre-market volume, Walgreens as well. Laggers I really just avoid. If there’s a lot of volume for a lagger, and it’s a good name, and the charts look good, I might play it for a dead cat bounce scenario, but typically no thanks.
Right here [01:42], AAPL, TSLA, DXC, MRNA, even Wells Fargo and American Airlines, we’re going to see some action in these names. Why? They’re the most active in terms of creating market volume. There’s a lot of reasons why we like trading names like these. The spread is tight for market fills, entries, and exits.
You can expect some volatility in these names because this is where all the action is at. You’re going to miss stuff. There’s going to be some name that’s not on this list. It’s going to just go up all day long. You’re going to find it later on and be like, what the heck? How did I not know about that? That’s just life. We hope to catch some of them.
I’m going to go into DXC. I’m not really sure what the news is on this stock. Nice triangle forming on the five-minute. Let me go out first. I’ll just go year-to-date on the daily [04:46]. A couple of gap windows to fill. I was supposed to do charts today on some names. Let’s do them right now.
There’s [05:18] a gap window fill, and we’re above it, bullish. Then we’ve got another one right about here [05:32]. It’s going to drop right here [05:40]. We’ve got another one right here [05:47], gap window, gap fill, resistance. These are things I’m looking for. You should know this by now if you’ve been with me for a while.
What else can we do? I see a trend right here [06:06]. I see this trend forming. I like that we’re starting to get a little bit of a trend here [06:15] in a negative/positive divergence on the D80X. On the daily, we’re coming up to some areas of resistance over bot conditions on the RSI.
I like getting in trades when there’s a relative strength of 20 or maybe the slow stochastic is at a 20 and curling up, so you have the wind at your back. Go to the weekly, just look at this [06:56] really quick. This [07:09] is a different story. It says, okay, we’ve got a little more room until we’re over bought. Eighty is still a little ways away. We need to focus. We need to get back in here [07:20] on the daily.
This [07:24] is what I’m looking at. I’m going to blow this [07:27] up too, so you can see even better. I thought I drew a trend line somewhere around here [08:00]. This is resistance up here [08:07]. This [08:34] is going to be a good area for support to go along.
I need to look [08:37] really quick in the options chain. I can look [09:11] at the February, volume, open interest. Thirty looks [09:35] good. We’re at the DXC, so we’re looking [09:48] at the 01, 21, 30. There’s too much to look at. Let me go back to charts. There’s [10:46] another good play. Now, I can’t remember what MUR, Murphy’s Oil. Let me see something really quick. Let me just pull this [11:07] up.
Options X Week is next week. If you don’t know what that is, you can look it up. Something is not good. It’s always something getting in the way. I have that [12:15] one. We have this [12:18] one. We have this [12:21] one, MO. Do we have MO? No, we don’t have MO yet. A lot of names, a lot of action today I’m finding in the tape, 1, 21, 42, 50, 1, 21, 42, 50 call.