My best day trading ideas for the 29th of July, 2020

BIG PICTURE:

In spite of the selling that came into the markets in the afternoon yesterday, the overall uptrend is still very much in tact. Further more, curiously the $IWM has been showing strength relative to the $QQQ which has been the leading index since we bottomed in March. So this is giving me even more conviction that we will likely continue higher in the near term at least.

Notwithstanding, volume and volatility has been really low recently. It's critical to be disciplined and focus on trading "in-play" stocks only or not trade at all. Markets have been really choppy and unforgiving of sloppy trading recently. Also FOMC announces their rate decision at 2PM today in case you plan to trade this afternoon which I don't plan to.

MY BEST IDEAS:

$STX: 

Fundamentals: 254.89M float;6.39% short float ATR:$1.30 Avg. Vol: 2.88M

Technicals: Gapping down from a 4 month range.

Catalyst(s): Reported that it lagged earnings and revenue estimates in Q4 plus multi analyst downgrades.

Bias & Plan: I am therefore short biased on it. I like it short below its pre-market low. Although the ATR is only $1.30 the stock has shown that it is capable of moving up to 3 pts in one day. So I'll be looking for a move down to $42 which is in the vicinity of the March lows.

$NIO:

Fundamentals: 838.55M float; 15.16% short float; ATR: $1.29 and Avg. Vol: 110.95M

Technicals: After an explosive run up in early July on the back of earnings related news; this stock coiled nicely over the past 2 weeks or so and now looks poised to resume its uptrend.

Catalyst(s): No fresh news. Market play but part of the hot electric vehicle group with $TSLA and $WKHS.

Bias & Plan: I am therefore long biased on it. I like it long above yesterday's high ($12.64) for a possible push up to the $13.58 daily pivot.

$LB:

Fundamentals: $228.28M; 9.32% short float; ATR: $0.81 and Avg. Vol: 8.04M

Technicals: Set to gap up from an almost text book cup with handle pattern on the daily chart.

Catalyst(s): Announced that it expects to deliver almost $400 million in annualized cost reductions through its profit improvement plan. 

Bias & Plan: I am therefore long biased. I like it long above pre-market high and will be looking for it to push to its 52-week high at $25.26.

OTHER POSSIBLES:

$MIST: 

Fundamentals: $21.77M; 6.98% short float; ATR: $0.93 and Avg. Vol: 6.00M

Technicals: After a huge gap up last Thursday on drug news this stock has flagged nicely and looks like it could resume its up trend today.

Catalyst(s): No fresh news. But float is really low. Technial breakout alone will be enough to send this stock on a tear.

Bias & Plan: I am therefore long biased. I like it long above yesterday's high ($8.50) above that it has lots of room to the $9.58 daily pivot and then above that lots of room to the $11.40 daily pivot.