Pre-Market Live and Options Picks for 12 21 2020

Good morning, this is Jake from Here’s the top stories today. Dow Jones futures tumble on new COVID strain in the UK. Stock market rally. New stimulus deal vote. Three Dow giants jump. Not really sure on this crappy stimulus deal, if it’s even going to pass, when it’s going to pass. Big techs are leading the market rally. Friday evening, we had some crazy action with the SPY and with Tesla.

Going into pre-market, I like to use You can see here the pre-market volume. I like Zoom, JPM, C, and Nike. Got a lot of pre-market volume here. Everything is down. We’re 1.41% down; that’s a pretty substantial gap down. We could climb to fill the gap. I do see us coming, potentially, a push up to 367 even, fill this gap window. Also, we’ve got the down trend; we’ve got resistance. I’m looking at getting in some puts here or here and I’ll post on the group, the alerts, maybe buy some calls if we touch here or here, for the push up, and then I’m going to definitely be looking at buying puts here or here, kind of here really, just the gap fill window. It can go a little red on us.

Now things to consider, we’re going into the New Year; we’re going into Christmas. The markets are going to be closed for two days, this week and next week, total of two days and then one half-day when the market closes early. Let’s get into the charts.

One thing I wanted to mention earlier was two things I’m thinking about already with the pre-market. One, is this a little bit of a head fake, meaning is this a bear trap? Are institutions trying to get people in and then take it up? It’s a little bit of a gap down. Everybody says, buy puts and then the market goes right back up. This could be a little bit of a bear trap or a head fake, as they call it. Well, a head fake is when you rake resistance and then you come back down. You think it’s a breakout but it’s a head fake and it tanks back down. This could be a bear trap on the indexes. We are kind of at the all-time highs. There’s still corona stuff and vaccine stuff and stimulus stuff. Nothing seems to have really happened and we keep rallying. We’re also at all-time highs so I don’t really know right now with the markets. There’s a lot of undetermined things. I know that when you’re at an all-time high, it’s a feel-good rally, like seeing everybody in. Get everybody in and then send it down.

JPM in this channel, I probably will only buy calls. There’s so much room to the downside. We could open and just flush. I don’t really like buying here to be honest. I would buy a break above this, 124. That’d be a little more bullish. We could maybe get back to this 126. It seems to be holding at pre-market, but it looks weak: gap down, push up. Couldn’t push it up much further than here. Back down, it can’t stay above this resistance. It was earlier but then down, up. Look at these doges; it could be sideways action. I’m looking for a breakout. If we break this support, I might look into getting puts. I don’t really like trading banks that much, to be honest.

We can go to C, Citigroup. Looks weak; I don’t really want to touch it.

Zoom, I like. I get excited about Zoom. Zoom can just dump like there’s no tomorrow at the open. I’ve seen it done a hundred times. Let’s go to the three-month really quick. I want to do some stuff here. This could be really good today, guys. It’s pretty much what I’m looking at. You could even do something like that.

Let’s go the day, a lot of room to that downside and not much room to the upside. Let’s just take it slow, play this one by ear, just keep an eye on it. If markets start to go, Zoom won’t be far behind.

We could take a look at MRNA. Somebody posted about MRNA in the group. It looks like it was a sell the news kind of deal with the stimulus. That’s what I’m thinking.

Here’s our channel. Kills puts, kills calls. Kills calls, kills puts, kills calls. This sideways action, it’s a good movement 135 to 146. There’s some room here for some volatility. You get above it, puts. You get here, sell, calls. Fifty-day simple moving average, sell. This is a good push, sell. This is pre-market, so this was market hours. You would have got calls here, sold close to here, sold. You could have got puts here, sold here. I’m looking at maybe some calls here, if we get it. We’ve got a weak market today. Little bit of a flag here, so something to watch out for. Then I’ve also got a little bit more confirmational trends here. Then we’ve got some areas right here to think about. Maybe right here, this gap fill, this window, zero this out. Go back to the day, a little too far, a little too fast.

Not looking so good for MRNA. Needs to be more like there. Lots to keep an eye on on this one. If we get below this low, 135, we’re going down to 126. If we get above this trend line and we get above this high of 143, maybe this high of 145, then we’ve got still got another couple of areas of resistance up ahead. I’d say there at the 145 area, that’s really good resistance lately for this stock. We’re going to keep an eye out. We’re might circle around, check on MRNA.

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Good luck today; let’s crush it. Let’s have an awesome day. I’ll see you in the private Slack group, and let’s get ready for an awesome day. Thanks so much. God bless and I’ll see you on the charts.

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