Tickers: SPY QQQ IWM FB AAPL TSLA MSFT AMZN GOOGL NFLX SMH XLE WTIC
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.
Inspiration –
Write down your trade process as a flow diagram. Is it a clean process that any village idiot can understand? Or is it convoluted with room for exception after exception or subject to interpretation? IMO what you’re looking for is a price-driven, highly mechanical process not subject to subjective interpretation. Once you diagram your process, it should become clear where the weak links are and would be a place to tighten up / improve how you approach trades. Having a high degree of subjectivity in your process is fine IF it’s working. If it is not working, you’re probably not as good a discretionary trader as you think you might be.
Earnings
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 6
- Monday – Nothing
- Tuesday – International Trade; 3yr Bond Auction
- Wednesday – Mortgage Applications, Oil inventory; 10 yr bond auction
- Thursday – Jobless Claims, NatGas inventory; 30 yr bond auction
- Friday – CPI, Consumer Sentiment; Rig Count; Treasury Statement
Next Week
- June 15 Big VIX OPEX Wed morning
- June 15 FOMC 2pm Wednesday Afternoon
- June OPEX Friday June 17
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.
INDEX CHARTS
Use the following pivots and levels in your active and swing trading.
SPY Daily
SPY 1 hr
QQQ Daily
QQQ 1hr
IWM Daily
IWM 1 hr
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