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Scott Redler’s Dog Bytes: Where the Algos Go

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SPX futures are -5 and off the overnight highs.

For this market to rebuild and remain constructive for active longs, the 4400 area needs to hold. It did go from the 100 day up to 4463 fast. We’re seeing a bit of digestion and it seems like the algos are programmed to buy banks and value after the Fed's hawkish language. Yields are lifting which could get worrisome at some point, but for now it’s considered a "normalization process."

Now let's dig into some of the individual names I'm watching.

I took a lot of DATS in the $8.50 area. It triggered above $9.13 to see $12+ to manage my last tier. Now I'd like to see it hold $10 on the remainder.

HOOD was a good buy in the $41 area and it hit $47+ to book some gains. I'm still in some and will see if the $44 area holds to stay with it.

CALX was a nice trade through $49 and it hit $53.50. I did buy some as it held $50. That spot needs to hold for the stock to stay special.

FCEL isn't an over focus, but I picked some up around $6.50 to see if it gets a better bounce if small caps do a bit better. Holding $6.70ish keeps it looking okay.

I put on DLO last week and it acted well. Now it needs to clear $68ish with volume to open the door for $73+.

Positions Disclosure as of 9/27/2021 at 8:24 a.m. ET