Before the Bell June 25

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Tickers discussed: SPY QQQ IWM FB AAPL AMZN GOOGL MSFT NFLX TSLA SMH BABA BIDU KWEB

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 also review a few of the Chinese Internet names that are perking up after being in the doghouse for the last 8 months.

Find the Video  HERE

Stress Relief

A light day on the macro front with just UM Consumer Sentiment and Personal Income data points today.  All the banks passed their stress tests last night after the bell. The news was expected, but you never know until it’s in black and white. Now the major banks will have bigger latitude to return capital to shareholders via either dividends or buy-backs or both.  It will be worth watching financials to see if there is an impact. May have already baked in cake. Elsewhere we hover near the highs but the moves have been less than inspiring….more of a drift than a move. We must focus on the market we have, not the one we want. I still think the pain trade is higher as many skeptics remain.  Staying long but with a constant eye on support levels.

Earnings after the Bell:  FDX sold off about 4-5% while NKE went into moonshot mode up about 15%.  Both will set up as nice bracket trades next week.

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.

FATMAAN  Daily Timeframe Charts

You can find commentary to go along with the charts in the companion video

$FB   FaceBook

$AAPL  Apple

TSLA – Tesla

$MSFT – Microsoft

$AMZN – Amazon

$GOOGL – Alphabet

$NFLX – Netflix

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

QQQ Daily

IWM Daily

 

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