Tickers discussed: SPY QQQ IWM FB AAPL AMZN GOOGL MSFT NFLX TSLA SMH Copper, Coffee, Lumber, OIL, 5 trade ideas
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
$NYMO / $NAMO Upside still available
Despite the strong close to the week, neither the NYMO or NAMO are overextended / over bought. Taken together, they say there is still room for the indexes to advance.
Trade Ideas
IRTC – Special Situation
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.
Bracket Trade Set ups
Follow price out of the bracketed range. You can also trade within the range taking positions at the low and high side of the bracket. Otherwise set your alarms at the bracket levels for either a breakout or breakdown of the range.
$ROOT – Auto Insurance Disruptive Fail
According to Insurance regulators, ROOT has 4x the number of consumer complaints than expected for a company of its size. Their program is to suck in clients with low-ball rates, then aggressively raise rates soon afterward. To make it worse, they make it almost impossible to cancel your policy. The roach motel program. I think this is heading lower. I’d be a motivated seller if price can make it to the 50ema. I think dreams die there.
$OTIS – Going Up
Broke out from a $3 consolidation range on Friday. Get long against 79.
$YETI – Poised for higher
Alarm the consolidation range between 82.50 and 90. I’d be a buyer either on a back touch of the 50ema at 82.50 or on a breakout above 90. On a breakout, I think this finds 100.
Upgrades and Downgrades
Clear Sailing?
While I never like to give the “all clear” signal, I think the bias should be for higher prices. THe liquidity is still there, price has bounced off the lows and have recaptured key levels, plus I dont see any sizable negative catalysts near term. THursday we have the CPI print. Most folks are anticipating a hot number so it will be hard to shock the market. THe next potential catalyst is the FOMC meeting next week. Until then, I want to lean bullish but with stops nearby in case i am wrong. I think any dips wont last long and will be bought.
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
Get inspired, empowered and prepared.
Join us!
As the host of Trader’s Profit Compass, I work hard to inspire, empower, and prepare aspiring traders to face the markets with fortitude, quiet confidence and inner calm. It’s a protein-rich, sugar free environment without ego or judgement. While I can’t promise that joining our group will change your life, I’d like to think it will help your trading. Give it a spin! Nothing to lose and potentially much to gain.
Our group of aspiring traders are into active swing trading using technical analysis to find objective, high-probability, low-risk trades. Using these processes we’ve been fortunate to be winning; not perfect but winning. If that is appealing to you, join us! I’d like to think you’d benefit from the work. You’ll get premium content 6 times a week including a copy of my Daily Profit Compass, Weekend Profit Navigator, along with other actionable content delivered directly to your mailbox. You’ll even get an invite to our new trading room on SLACK.
Registration is simple and FREE Visit our homepage HERE
