Tickers: SPY QQQ IWM FB AAPL TSLA MSFT AMZN GOOGL NFLX SMH XLE
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.
If you allow it, your mind will help you achieve your goals. But first you need to observe it and learn to trust it. I devoted a blog post to the topic; “Engaging your inner observer”. Find it HERE
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 June 27
- Monday – Durable Goods, Pending homes sales, Dallas Fed, 5 yr note auction 1pm
- Tuesday – Intl Trade, Retail & wholesale inventories; Consumer Confidence; Richmond Fed; 7 yr Notes 1pm
- Wednesday – GDP 8.30. ; Jerome Powell 9am, oil inventory
- Thursday – Jobless Claims; Personal income / outlays; Chicago PMI, NatGas Inv.
- Friday – PMI MFG, ISM MFG, Construction spending.
Let’s extend this rally!
After ending last week at the highs, I am looking for this rally to extend through this week into the holiday weekend. There will be a lot of flows this week with quarterly rebalancing as well. THe fly in the ointment is that on Wed. we get Q2 GDP and JPOW speaking. Either of them have the potential to throw cold water on the rally.
Trading this rally
- I want to continue to stay long this new rally and not try to outthink it.
- I consider this a bear market rally that will eventually fizzle and roll over.
- Have a short leash
- Bear market rallies cannot be trusted.
- Roll and Protect positions that go into the money by rolling to higher strikes and scraping off profits.
- Be aware of the key levels on the daily chart even if you are trading lower timeframes.
- Often a key moving average or downtrend line will stop a rally in its tracks at least for a period of time.
- Trade level to level, making price prove it all along the way.
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.
Use the following pivots and levels in your active and swing trading.
IWM 1 hr
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