MARKET OUTLOOK - JANUARY 29TH - SPY, CRON, NBEV, PYPL, NVDA

JANUARY 29TH

SPY

As days progress and more earnings are released it looks like we are holding these 260 levels on the SPY just fine. For me, this could go either way. With earnings still to be released from MSFT, AAPL, MCD, TSLA, AMZN we could see some volatility in the next coming days. Realistically I am looking for little swing opportunities right now, but am a squeeze higher will interest me in how the buyers and sellers interact to see if we can squeeze even more, nothing is out of the picture.

CRON & NBEV

With the weed sector heating up last weeks watch of CGC was spot on. CRON is starting to squeeze further as shorts are getting destroyed. There has been some option activity in both CRON and NBEV that has caught my eye. Whether this is shorts hedging their core positions or MOMO players looking to catch some shorts. Either way, I think that we can still see higher levels in these names, especially if SPY wants to squeeze. What a tough environment for shorts right now.

PYPL

PYPL quickly made new highs off of this recent rally, showing the absolute strength of this name. However, we are back to levels that may make some longs nervous if they bought a false breakout. If SPY starts to come in this is the first name I will be looking to attack. Initially, I would expect some strength, but as longs start to realize that they bought false high things will start to unwind creating some massive opportunities within the options.

NVDA

NVDA just the latest name to be affected by China. Falling 30 points yesterday we are already down here in the pre-market showing the relative weakness here. I think you will get some continuation in this name to at least test the 130 level once again. If we rip I am looking to short into any massive rally as longs are obviously trapped here and looking for an escape.