On Watch 06/30/20 From Dante

 

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BLNK: On today’s edition of “WTF” – we have BLNK. Think pump has been around the block more times than I can count, not that any of that matters right now, but be careful with this one. It’s an absolute non-factor in the EV space, but I am a little annoyed I didn’t think that they would use the recent EV sector fire to run this. We’ll see what it looks like in the morning, looking to fade the open look. Name has a history of multi-day runs, so if we open higher, will look for the early short but just a scalp. And if we open weak/lower, will likely avoid the short altogether, and it’s worth a look long if 4.50+ area holds.

BHTG: Pretty much everyone bagged here, so will look for the typical action on these types that get everyone bagged, early pop the following day for more unwind. Ideally 3.30-3.50 area on this and then would be looking to fade it back down, not expecting too much more trouble from this one – there’s a lot of other shiny objects to focus on, and don’t think this will be too high in demand tomorrow onward.

AAL: (Goes for the other airlines as well, this is just the one I’ll be focusing on) I really like these daily charts to start forming a bigger picture trend back up. Goldman upgraded LUV today and the rest of the sector took a nice ride with that + strong SPY and the Boeing ++ headlines don’t hurt either. The narrative here is pretty simple in my opinion – these will be directly tired to the daily covid numbers being reported. If we successfully contain this attempted second breakout of the virus, these should keep steady bids. For example today, Florida and California I believe reported a slow in daily cases, so these kinds of things should result in ++ action for travel and leisure naturally (cruise lines too if that’s your go-to play here). Just be weary not to chase. Any days we have a big gap ups, I’m much less interested long. Weak opens/gap downs with no catastrophic new developments in the news, and they have my attention for long trades.

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See you out there!

– D