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Here's What You Missed On PreMarket Prep Today

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Here's What You Missed On PreMarket Prep Today

Did you miss today's PreMarket Prep? Here are some of the highlights from the show.

Key Technical Levels

The following are some of the stocks discussed on the show for which co-host Joel Elconin offered technical levels.

  • Lululemon Athletica inc. (NASDAQ: LULU) has a lot of trapped longs. It found support and rebounded to $52.90, but is at its lowest level since December 31, 2015 when it bottomed at $51.59.
  • Snap Inc (NYSE: SNAP) has shown a tight range so far, and it may grind it out in the $22 hande today. It's got a double close area from Tuesday ($22.21) and Wednesday ($22.55), and potential double top at Wednesday's high ($22.71) and current high of $22.85. There's limited support until Wednesday's low of $21.33.
  • Gilead Sciences, Inc. (NASDAQ: GILD) is dead money for now. There's no catalyst to take it higher or lower, so it's range trading for now. There's two highs at the $67.50 area and the current high for the day is $69.49. It has nice support forming at the $67 area. 
  • National Beverage Corp. (NASDAQ: FIZZ) is going for 16 up days in a row. Higher found support just above Wednesday's close of $84.31 at $84.60. Find a seller for now at $85.50 as larger players just may be using half and whole numbers to parcel out. Support limited if close is breached. Nine-day average trading range is 1.96, so that projects to $83.54 if current high stands.

Today's Guests

Marc Chaikin, the co-founder of Chaikin Analytics, joined the show to discuss his options trading strategy and preview a webinar he's giving today at 4:15 p.m. ET.

Chaikin, who ran an options department for five years at a regional firm, observed that 95 percent of the traders under him lost money using options. "And the reason is they didn't understand the importance of what we call directional edge," he said.

He also discussed how he uses options to trade binary events like earnings reports. "During earnings season, a lot of people shy away from trading because of the volatility," he said.

According to Chaikin, "People are just not buying into this great advance, and I think that's a huge mistake... This is not a Trump rally in our view this is a fundamentally driven rally." Listen to the full segment with Chaikin here.

Eyal Mor also joined the show to discuss his platform, BetterTrader. Mor has a background as a quantitative trader, and launched a platform that allows people to do research and provides backtested trading ideas for futures and forex based on economic events.

For Mor, it comes down to giving active traders a system based on backtested results. Having a system, he said, is something all professional traders do.

"Let's say the unemployment rate is negative; [traders will] automatically sell the S&P 500," he said. "The human logic of why something should affect something else does not work anymore in the market. Today you need much more." Listen to the full interview with Mor here.

How To Listen And Watch

PreMarket Prep is a daily trading ideas show with a focus on premarket volatility and technical setups. You can listen live and chat with our hosts, guests, and listeners every morning from 8-9 a.m. ET here or on YouTube Live. You can listen to the podcast on iTunes, Soundcloud and Sticher. The full recording of today's show is available below.

Posted-In: Eyal MorFintech Education Technicals Markets Trading Ideas Interview General Best of Benzinga

 

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