Watchlist 21st March 2022

A fresh week with Quad Witching and practically all the news catalysts behind us. As I explained last week it’s time to move on from starring at every headline and focus on what’s right in front of us. It’s not about being ignorant to current world economics and politics but more about staying focused and nimble. We want to be on top of sector rotations, where the money is flowing too and what sectors are getting dumped.

We saw the Chinese names put in an extremely aggressive rally last week with many names pushing 2-3 ADR moves. A lot of which just got dumped over the weekend with names like $BABA back to Fridays open.

OIL is staging a very aggressive bounce back from the 50ma, something we felt was extremely likely. This will no doubt help to weigh on the tech bounce, one of which is pretty overextended on the short term. This doesn’t mean we won’t head higher this week but there’s certainly less edge in names which have run 4 days straight (obviously).

$OXY – A very nice breakout on Thursday followed by a retest on Friday. A lot of the OIL names faded towards the end of last week as tech was heavily chased. With emotions no doubt a little more stable this week we should see a nice continuation in this sector. We’re already in $OXY from last week however those that aren’t may be provided an entry today.

$F – Extremely tight range build against the 200ma, I’ll be looking for a break of the 200ma and $17 to get involved. Risking LOD and below the 200ma.

$ZIM – If you want that Divvy you have to get in today. This could represent a big day trading opportunity as no doubt last minute buyers step in to claim a $17/share special dividend. Super strong to the market with a nice trend against the 5ma.

$KR – Huge earnings move from the 3rd March which it’s held well even against market conditions. All of the MAs are now caught up and the price range is extremely tight. I’ll be looking for a break of the 10ma to get involved.

$ATKR – extended from it’s recent bounce however I wanted to put it on watch now so we don’t miss the next move higher. EPS rating of 99, EPS growth rate 51%, Return on Equity 99% and a P/E of 7. A wide range of products catered towards the commercial industry. A break of $110 would be key, ideally we create a range over the next couple of days then slam higher.

$CF – This daily and weekly timeframe is insanely bullish. Huge breakout from earnings followed by a nice 10ma trend. As the tech sector bounce it slammed with a takeout to the downside. One which was instantly bought up. Top EPS rating, 45% EPS growth, 46% return on equity. Manufactures nitrogen fertilisers in North America. Daily RSI back into the 60’s as the 10ma catches up.

$CORN – Still on watch and still in play, a years cup and handle in the making with refusal to break down when other commodities have. The strength so far on this range build is extreme, given current conditions. Over $760 and I feel $900+ is on the cards. Historically this trade extremely clean on breakouts.

$NUE – One of the strongest steel names with an EPS rating of 97, P/E of 6, EPS growth rate of 24% and Return of Equity of 55%. The daily is primed to perfection to go today, a big watch for me at open.

I also like a lot of the plays in Stonk Gang watchlist but don’t see the need for me to repeat them 🙂