PreMarket Prep Recap, March 21: We Haven't Seen A 2% Correction Since The Election

Did you miss Tuesday's PreMarket Prep? Here are some of the highlights from today's show.

Key Technical Levels

  • General Mills GIS: Going long term, it has to retake $60, except for one blip to $58.70 in February, it has been in $60-$64 trading range for six months. It's now bearing down on the lower end of range.
  • Kellogg Company K: The long-term chart isn't pretty. It's been in a trading range since February 21 from $73.64-$75.21. Trade the range until it breaks up or down.
  • Canadian Solar Inc. CSIQ: It got a $1 bounce off of Monday's low. Let's see if it can get into Monday's range of $13.23-$13.55. The pre-market low of $12.40 is a safe number.

Gary Kaltbaum, the owner and president of Kaltbaum Capital Management, noted that we haven't had a 2 percent correction since the election.

"Welcome to a bull market," Kaltbaum said. "When they can't sell off, that is what bull markets are made of. The amazing thing is, I know there are a few areas in trouble...but overall they just cannot pull this thing down in any way, shape, or form. That leads me to the worry. When you get everybody thinking 'Oh, this is it. We're never going to correct, everything is great,' and then all of a sudden we finally get one, it unwinds what I call a one-sided trade. So just be on your guard."

Listen to the whole interview with Kaltbaum here.

Charts To Consider

Nic Chahine, author of Create Income With Options Spreads, joined the show and offered some charts courtesy of TradingView

Chipotle Mexican Grill, Inc. CMG: "Zoom out. They're still trying to recover. Trade the range. Selling iron condors or credit put spreads will work."

Shopify Inc (US) SHOP Too hot to short. Too high to chase. Too bad I missed it.

Listen to the full interview with Chahine here

Vlad Karpel, founder of Tradespoon, stopped by to talk about his platform. Tradespoon offers predictive candlestick charts, as well as other analytics, for any investment with historical data. Listen to the interview with Karpel here

Notable Morning Imbalances as of 8:55 a.m. ET. 

  • Bank of America Corp BAC 156K shares to sell
  • Pfizer Inc PFE 83K to buy
  • AT&T Inc. T 55K to buy
  • Verizon Communications Inc VZ 50K to buy
  • Alibaba Group Holding Ltd BABA46k to buy
  • Nike Inc NKE 59k to sell

How To Listen And Watch

PreMarket Prep is a daily trading ideas show with a focus on premarket volatility and technical setups. You can listen live and chat with our hosts, guests, and listeners every morning from 8-9 ET here or on YouTube Live. You can listen to the podcast on iTunes, Soundcloud, and Stitcher.


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Posted In: Long IdeasShort IdeasTechnicalsOptionsPre-Market OutlookMarketsTrading IdeasInterviewGeneralDennis DickGary KaltbaumJoel ElconinNic ChahinePreMarket PrepVlad Karpel