BIG PICTURE:
Markets are still very much in a confirmed up trend and interestingly the $IWM led the markets higher yesterday indicating that buying is getting more and more broad based and not just limited by and large to tech and bio-tech names.
However, even given the above, I do believe that the markets are a bit overbought and that the $IWM in particular which traded up to major daily resistance yesterday COULD pull back to support around the $150ish zone today.
In the same breathe the buying has been so incredible in this up trend that I would not be surprised to see it push through resistance and blast higher. So keep your mind open to either possibility although the markets could also simply chop side ways in a tight range today.
MY BEST IDEAS:
$FSLY:
Gapping down huge into support after reporting good earnings but disappointing sales outlook. This stock has been one of the leading momentum growth stocks during this up trend and with a float of just 76.78M; short float of 10.52% and ATR of $8.05; I am anticipating that this stock will see institutional buyers come in to support it and that it could squeeze big today. In fact, I would not be surprised if this stock gets back up near $100 today!
$WDC:
Gapping down from a tight daily range after reporting that they exceeded Q4 earnings estimates but also delivered a disappointing earnings outlook. This stock has lots of room down to support around $37.65/$37.50 area. With a float of 298.23M, short float of just 2.58% and ATR of $1.52; I'll be very comfortable shorting this stock if it gives me an A+ intra-day set-up.
$VIAC:
Gapping above a wide range red day from yesterday after reporting that they beat both earnings and revenue estimates. With a float of 550.59M; short float of 13.98% and ATR of $0.99; I fully expect this stock to run up today as it has decent room before the 200 day sma around $27.85ish and above this the next pivot is not until $28.59.
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