Tickers: SPY QQQ IWM META AAPL TSLA AMZN GOOGL NFLX SMH MU ARKF ARKG ARKK ARKW BTC WTIC WFC
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.
Many problems are one of two things. Real problems of our own making and/ or problems we imagine. It is especially important to differentiate the two. Real problems can be addressed with real solutions. For instance if your P&L swings are causing you stress you can reduce the number of positions and reduce position size. Problem solved. If you let your mind take a drawdown and turn it into a death -spiral with dire consequences. That is imaginary. The worst of possible outcomes rarely happens, especially if you are taking corrective actions along the way.
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.
Massive macro data points over the next 3 days. JPOW takes center stage today with an anticipated 75bps rate increase. THe key will be the commentary by Powell at the 2.30pm presser. Then tomorrow GDP and Friday inflation print. Expect a lot of volatility over this period. I like to back off swing trades during this period. Day trades are fine if you see something you like. Just be aware of the elevated overnight risk. We’ve also got the balance of mega cap tech reporting. META tonight, then AAPL / AMZN tomorrow after the bell.
IWM 1 hour
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