Market Overview

May 14th Watchlist

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Futures pushed back into positive territory after looking slightly weak earlier this morning. SPY has leveled off somewhat around the $163 area but today could be the beginning of a fresh rally above $164. The bullish sentiment continues to be showcased daily now each trading day while the bears keep getting slaughtered. With the lack of economic data today, stocks will most likely continue on the current path of least resistance but the action has definitely become more difficult and choppy. This means it's not as easy to single out which names to be in for aggressive long bias intraday trades.

Tesla (NASDAQ: TSLA) has become the top news of the last week as it keeps pushing to fresh all time highs on the regular and has now gone parabolic. The stock is trading at $93 in the premarkets today after earnings hit the street on May 9th. I do think the party will end shortly and this will open the door up to a nice short trade but for most brokers this is now on the hard-to-borrow lists so the put option premiums are riding a bit high. Nonetheless, when she's ready she'll drop out a quick 10 points fast. For you scalp traders out there, you can play both sides and do pretty well so keep this name on your radar.

Netflix (NASDAQ: NFLX) began it's move to fresh 52-week highs yesterday, after shaking everyone out on a stop loss burn down to about $204. Writing OTM puts on this name is a smart idea provided this is a real move and that she'll see continuation up through $230.

SPY needs to make a push over $164 for us to really see some alpha on the long side. It is possible we continue to chop which means intraday trading will be difficult.


The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Markets Trading Ideas


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