The SP500 gapped higher yesterday and peaked at 10:00 am, this has been a recurring theme over the last couple of days.
Energy and the metals took on the chin with the miners (GDX) ending the day -3.63% and Energy (XLE) was down -1.47%.
I have a few stocks on my watchlist today.
I have an interest in these stocks on the long side if and only if they go through yesterday’s high plus .10-cents. This single criterion will narrow down the list and get you involved only in the stocks that are on the move. The main drivers of stocks in the short term is momentum and mean reversion. Stocks that have a significant move in the short term tend to rest and move sideways for a few days and then resume higher more often than not. These momentum bursts typically last 1-10 days.
I’m excited about $KITE, it gapped higher on 2/27 on the back of some CAR-T results, since then it’s been trading sideways while the entire sector has been under pressure. $KITE, has tightened up recently and it looks ready to resume higher, I have an interest in the stock if it can get through today’s high plus .10-cents.