Tickers: SPY QQQ IWM FB AAPL TSLA MSFT AMZN GOOGL NFLX SMH ITB XRT
Before the Bell is premarket prep for active traders. The note provides detailed stock market technical analysis focused on the indexes and FAAMGs. Key levels and trading locations are provided, along with trading plans and timely commentary to keep you on the right side of the trade.
Now, more than ever in recent memory, it will be important for we traders to be open and fluid in both our trading and positions. Long some stuff, short other groups. Resist the temptation to cling onto prior belief systems or regimes that have worked for you in the past.
Be a leaf floating on a stream of price; happy to go either higher or lower. .
The video is a detailed technical review of the indexes and FATMAAN names. All the key trading levels are identified along with commentary and trade plans for each ticker. Trade ideas are also discussed. Run the video at 1.5x to maximize efficiency without loss of clarity.
Find the Companion Video HERE
Macro Data Releases Week of April 4
- Monday – Factory Orders
- Tuesday – Intl Trade #’s; PMI Composite; ISM Services; Multiple FOMC Speakers Lael Brainerd speaks 11am.
- Wednesday – Harker; Oil Inv; FOMC Minutes 2pm
- Thursday – Bullard 9am; Jobless Claims; NatGas Inv; Evans 2pm and Williams 4pm FOMC
- Friday – Wholesale inv preliminary; Rig Count
Doomsday Proof your Trading Book
FOMC Vice Chair in waiting Lael Brainerd who is known as a UBER dove in her philosophy, went aggressively hawkish at her 11am speech. She signaled an especially aggressive Fed with a fast balance sheet run-off. The last time they did QT it was $40B a month. But that was when the Fed Balance sheet was $4T. Now its $9T. More evidence of the things we’ve been discussion for a least a couple months….namely that the FOMC is going to pull the plug on the liquidity pool. Now they’re shedding light on how big the drain plug is…… . We also thought the market would hold together through the end of Q1 which it did. The challenge now is to Doomsday Proof our Trading Book. I’ve been maintaining for a while that this will be the Golden Age of Long / Short Trading. That doesn’t make it easy but it does imply a lot of tactical trading.
Asset Classes and Sectors to look for Longs
- All flavors of Commodities – OIL, NatGas, Grains, Base Metals
- Commodity related Companies. Energy, Agri Business etc Energy Pipelines, MOO, DE, ADM, BG
- Commodity- Centric Countries: EWA, EWC, EWZ, ECH, EPU, GXG, EWW, ILF, ARGT
- Fertilizer: CF, NTR, MOS, IPI
- Lithium & Uranium
- Precious Metals and Miners
- Defensive Trade Down for Consumers. WMT, DG, DLTR
- Grocers. ACI, SFM, GO, KR
- Defensive Pharma
- Insurance Stocks
- Quality Theme; Low Vol Theme
Asset Classes and Sectors to either Avoid / Short.
- Ponzi / Bubble / Non-profitable stocks – ARK Complex
- Zombie Companies – Can’t service their debt is a rising rate environment; Will take some fundamental Analysis to find them
- Housing and Housing Related.
- Retail & Restaurants
- Stocks or Sectors that have already lost their February lows
- High Beta
Bell Weather Tells
- QQQ vs SPY relative performance
- Defensive Sectors leading
- Mega-cap tech.
Dont forget. 75% of a stocks direction is dictated by general market conditions
QQQ 30 min
IWM 30 min
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