PreMarket Prep Recap, March 23: The Trade In The Financials Just Changed

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.

  • Bank of America Corp BAC is trying to find a home at $23.00. It had a double close from Tuesday at $23.02 and Wednesday $22.94. Buyers will step in ahead of Wednesday's low of $22.45. Needs to clear Wednesday high of $23.18 for continuation rally.
  • Snap Inc SNAP is trying to extend the rally from all-time closing low of $19.54. It needs to clear the pre-market high of $22.85 for the rally to continue. Ther's major resistance at a triple top from March 8-10 at $23.43, $23.68, and $23.40. That's just below $24.17, which is 50 percent rebound from $29.44 to $18.90.
  • PVH Corp PVH is knocking on the door of triple digits. It's holding up at pre-market high of $98.85. Nothing on the daily chart for resistance until December 15 high of $99.86 and December 14 high $102.50. Hard to find support if reverses.
  • Wynn Resorts, Limited WYNN's rally looks extended. It needs to clear the triple top from $113.52-$113.95, and hold the close of $113.35 or there's air on the downside.

Phil Davis, the founder of Phil's Stock World, joined the show to discuss some recent shorts he's made.

Notably, Davis said he has shorts on Netflix, Inc. NFLX, Tesla Inc TSLA and Amazon.com, Inc. AMZN. He's more convicted on Tesla and Amazon, and is therefore using a more aggressive spread. For his Netflix short, he's using a put spread to limit his risk due to the stock's recent strength.

"In the case of something like Netflix I'd rather limit my risk than try to get fancy with a trade." Listen to the full segment with Davis here.

Scott Redler, chief strategist at T3 Live and T3 Trading Group also stopped by to talk about which sectors he's in and out of favor of. He highlighted the financials as something he's watching closely.

"The accelerated trend that was in tact since the election just got changed," Redler said. "That doesn't mean the macro trend is over...but the trade changed."

He noted a stock like Bank of America didn't act well after the Fed's recent rate hike, which was followed by a breach of the 8- and 21-day moving averages.

"I would be watching the banks to see what type of bounce they have and whether those moving averages get reclaimed or rejected." Listen to the full segment with Redler here.

How To Listen And Watch

PreMarket Prep is a daily trading ideas show with a focus on pre-market 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 Stitcher. The full recording of today's show is available below. 

Posted In: OpinionEconomicsPre-Market OutlookMarketsTrading IdeasReviewsInterviewGeneralDennis DickJoel ElconinPhil DavisPreMarket PrepScott Redler
We simplify the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...