Before the Bell Jan 13

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Tickers:  SPY QQQ IWM FB AAPL TSLA MSFT AMZN GOOGL NFLX SMH DBB DBC XME JO MT EWZ COPX GLD

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.

Inspiration – Master yourself

You’re not here to master markets, you’re here to master yourself. I can assure you that spending 30 min meditating will advance your trading farther and faster than time spent looking at charts. Trading is about fidelity to a process. That requires discipline, fortitude, and courage and nothing to do with the market. Identify the dragons in your life that undercut your trading every single day, then work on killing them.  It’s the hardest work you’ll ever do, and that’s why 90% of wannabe traders never bother. Get after it!!

Earnings 

Companion Video  

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 1.25x- 1.5x to reduce run time without loss of clarity.

Find the Video   HERE    

Macro Data Releases Week of Jan 10

  • Monday – Wholesale Inventories; Bostic
  • Tuesday – NFIB index; Redbook; Ester George.   Jerome Powell nomination hearing
  • Wednesday – Mortgage applications; CPI 8.30am; Atlanta Fed Inflation 10am; Oil inventories; 10yr Bond Auction 1pm; Beige Book 2pm
  • Thursday – Harker, PPI final; Jobless Claims, Brainerd; NatGas inv; Charles Evans; 30 yr bond auction; Fed Balance sheet
  • Friday – Retail Sales; Import/Export Prices; Ind. Production; Business Inventories; Consumer Sentiment; John Williams

Market weathers CPI STORM

The CPI came in at 7% YoY and 5.5% core.  Pretty much in-line with expectations. THe Market bounce, for the most part, stalled and appeared in consolidation mode with many bull flags being carved out. The fly in the ointment is that these bull flags are poised under key resistance. A break out would be bullish but given OH resistance a rejection would not be a shock.  The SPY chart looks the best; QQQ is cautionary w/ price below the 50ema; and IWM is outright bearish w/ price below the 200ema and all other emas.  FATMAAN is a mix of productive looking charts and those that do not look so hot.  Details in the video.

$USD Breakdown stokes Commodity Bull Run. 

The US Dollar broke in a big way yesterday. A falling Dollar is a big tailwind for commodities across the board.  In the video I flag a few charts of interest buy way more should be investigated at your end.  Oil/ Metals and Mining / Oil Services / Copper / Aluminum / Iron Ore / Coal / Specialty Chemicals etc.

A look at Dr. Copper

 

Base Metals

The world does not have enough base metals.

Market Insights

Corporate America is loaded with cash. Now the question is how do they use it?  If they go heavy into BuyBacks it will be hugely supportive of equities.

INDEX CHARTS

A detailed walk-through of the levels and trading strategy for the indexes is given in the video ( link above) . The static charts are provided for reference. The FATMAAN names are also reviewed in the video along with trade ideas and other charts of interest.

SPY Daily

$470 is a major pivot level. A hold above keeps the door open to $475.

SPY 2 hour

SPY 30 min

QQQ Daily

Traders should remain cautious with price below the 50ema. A break above $390 opens up the chart and would allow you to be confidently long against the 50ema w/ a stop just below.

 

QQQ 2 hour

As you can see, we are at the 50% retracement level where many rallies die.  $390 is an important level for bulls and bears alike.

QQQ 30 min

IWM Daily

Price remains below all moving averages and is the weakest of the indexes. A first positive step would be to reclaim the 200ema. While below price remains open for a retest of the bottom of the range at 210.

IWM 2 hour

IWM 30 min

 

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As the host of Trader’s Profit Compass, I work hard to inspire, empower, and prepare aspiring traders to face the markets with fortitude, quiet confidence and inner calm. It’s a protein-rich, sugar free environment without ego or judgement. While I can’t promise that joining our group will change your life, I’d like to think it will help your trading. Give it a spin!  Nothing to lose and potentially much to gain.

Our group of aspiring traders are into active swing trading using technical analysis to find objective, high-probability,  low-risk trades.  Using these processes we’ve been fortunate to be winning; not perfect but winning. If that is appealing to you, join us!  I’d like to think you’d benefit from the work.  You’ll get premium  content 6 times a week including a copy of my Daily Profit Compass, Weekend Profit Navigator, along with other actionable content delivered directly to your mailbox. You’ll even get an invite to our new trading room on SLACK.

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