Tickers discussed: SPY QQQ IWM FB AAPL AMZN GOOGL MSFT NFLX TSLA SMH IBB MJ TLRY CRON GRGW
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.
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 to reduce run time.
Find the Video HERE
Upgrades and Downgrades
Trade Ideas – Cannabis Sector is showing life
CRON – Showing Life
Coming off support at $7, price has managed to recover all its moving averages which is an important technical event. Now price is consolidating in a bull flag. I like the idea of getting long against $9 on the breakout with an eye on $10.75 as a first target. THe CEO is quitting after only 6mo on the job. Did he discover the situation even worse than he imagined when he took the job? If price breaks 60 there won’t be anyone home to save this. Set your alarm for a duration short.
$GRWG
Price coming up to challenge the downtrend line and in doing so has recaptured all its ema’s. A breakout above $45 should open the door to $48 for starters and with follow through low $50’s
$MJ – Canadian Focused Cannabis ETF
While not as pretty as the others, all the things i look for in a set up are present. All ema’s have been recaptured with price consolidating just below lateral resistance at $22. I think a break above $22 opens the door to $25. Set an alarm there and be ready. Aggressive traders could get long now and front run the anticipated breakout. A riskier proposition, but there’s a reward that goes along with that, especially if the is a gap up or a huge green candle off the open that would be hard to react quickly enough to get it.
$TLRY – Going Up
Very much like the $MJ set up. A break above $22.50 is your long trigger with $27.50 as T1.
Biogen Lifts Pharma & BioTech
Even though Biogen was not given full FDA approval for their new drug for Alzheimer’s Disease, they were given approval to start using the drug, collecting clinical trials and producing the documentation of efficacy. It is the first drug approved for use in Alzheimer’s in 18 years. That news launched BIIB up 40% and others in sympathy with the move. I like the set up on IBB here as it challenges to the top side of its $12 consolidation block. A breakout above $$158 targets $170 on a measured move basis. I like IBB long above $158. I’d look out at least 2 months to let the trade work.
Re-Posting – Thoughts on Trading the Meme Names
I’m not one to tell you not to gamble, but a few thoughts if you decide to jump in.
- Treat all trades like lottery tickets. Expect to lose it all. Dont use monies that if lost, will put your trading account or worse at risk.
- Watch overnight Risk. One in the hand is better than 2 in the bush. Don’t underestimate how deep or severe an overnight rug pull can be. Consider taking wins when you can.
- Market Makers are paid to Win. These guys are no dummies, They’ve jacked option IV to the moon making options incredibly expensive and thus harder to win. Make sure you know your risk / reward profile before to dive in. For instance, I priced some $25 strike PUTs in AMC a couple of months out. They were $25. So if AMC went to zero, I would get my money back. Not the kind of trade that makes sense.
- NEVER SELL NAKED CALLS or PUTS. While it may be super tempting to sell vol premium at the jacked levels, selling naked options exposes you to UNLIMITED RISK. If you sell anything, it must be a spread to limit / define your risk.
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 2 hour
SPY 30 min
QQQ 2 hour
QQQ 30 min
IWM 2 hour
$IWM 30 Min
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