Tickers discussed: SPY QQQ IWM FB AAPL AMZN GOOGL MSFT NFLX TSLA SMH CVNA PINS PYPL TWLO BE TAN FSLR SPWR
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
A light week for earnings but interestingly a mix of names that could be helpful for gauging certain important sectors. Solar: PLUG / JKS Home Building: KBH Global Logistics & ecommerce: $FDX Global Retail: NKE Travel: CCL Restaurants: $DRI
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.
Inside the video I review a few existing trades and explore some new chart set ups in the Solar Sector
Find the Video HERE
Hanging Out Near the Highs
Yesterday was primarily a consolidation day for the indexes and FATMAAN names after a multi day advance. So as we hangout near the highs, we have some potential cataylsts this morning on the macro front with data releases on Durable goods, GDP, Jobless claims and a few other minor data points. Also its important to recognize that earnings season is only about 3 weeks out. There is usually a bullish tilt to markets ahead of earnings. Also, I think the market has largely digested the FOMC at this point and has made peace with it. So long story short, I am leaning bullish, but with clear-eyed realism that they can pull the rug for no reason. Keep focused on levels. Charts don’t lie.
Earnings after the Bell: FDX and NKE should provide important insights in their respective categories and the economy at large.
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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