Tickers: SPY QQQ IWM META AAPL TSLA MSFT AMZN GOOGL NFLX SMH ARKF ARKG ARKK ARKW MU LOW GS
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: Wisdom from Ed Seykota
Know your trigger levels and react to them. No benefit is gained by realizing you’re wrong, then going through mental contortions to justify remaining in the trade. Accept the situation for what it is and move on.
Earnings
Earnings reports kick into full gear this week.
Today’s 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 1.5x to maximize efficiency without loss of clarity.
Find the Companion Video HERE
Macro Data Releases Week of July 25
- Monday – Chicago Fed; Dallas Fed; 2 yr Auction 1pm
- Tuesday – Case-Shiller Home Prices; Consumer Confidence; New Homes Sales; Richmond Fed; 5 yr Auction 1pm
- Wednesday – Durable Goods; Intl Trade; Pending Home sales; Oil inventory; FOMC 2pm; FOMC Presser 2.30pm
- Thursday – GDP; Jobless Claims; NatGas Inv. ; KC Fed; 7 yr Auction 1pm
- Friday – Inflation Numbers; Chicago PMI; UoM Consumer Sentiment
Macro Framework Spring / Summer 2022
Find the Blog Post HERE
Earnings Season & Bracket Trades
As earnings season kicks into gear, a reminder that this is prime time for Bracket Trades. Bracket Trades are those trades created when a stock gaps up or down from a news driven event. Bracket Trades are set up as “2nd day trades” where you alarm the high and low of the prior day’s trading range, then patiently wait for price to either break lower or higher from the range. You then follow price out of the range. I will do my best to help identify them for you, but you can easily find them yourself by doing a sort for “GAP ups” and “GAP Down” on your trading platform. I add additional filters for only stocks above $10 and at least 500,000 shares traded. You can add additional filters to cut down the sort further. Generally speaking, stocks favor continuing in the direction of the gap higher or lower.
You can find out more about Bracket Trades in the video Run the Player at 1.5x HERE.
Prepare for a huge Week
A massive week in markets ahead. Mega cap earnings, FOMC rate decision and Presser Wednesday, GDP THursday followed by inflation numbers on Friday promise a lot of volatility if nothing else. Friday saw the indexes stall at the 38% fib retracement zone. Now for this rally I think it is key for price to hold the 50 day ema’s to keep this rally in tact. I believe positioning is still light on the long side so if the rally does maintain of move higher, there should be some FOMO kick in. THat is a big IF. Will all the catalysts this week , hard to guess which way this will break. I still believe your longs should be on a short leash. THe primary trend is down , so I view this as a counter-trend bear market rally. Happy to trade it long as far as it goes, but the big picture remains bearish.
Indexes
SPY Daily
SPY 1 hour
QQQ Daily
QQQ 1 hour
IWM Daily
IWM 1 hour
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