Tickers discussed: SPY QQQ IWM FB AAPL AMZN GOOGL MSFT NFLX TSLA BTU ARCH GLD GDX SLV WPM USD EURUSD
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
Although we are on the downside of earnings mountain, still plenty to keep us busy.
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
Upgrades / Downgrades
HACKED !
So the bad guys breached the firewalls on the Colonial Pipeline which is a major fuel supply corridor that runs from Texas to the Northeast. While we may have a couple of days reserves of gasoline, soon there will be regional supply disruptions. THis vulnerability may give a lift to the cyber-security sector. THat sector has been really soggy with most names well off recent highs. Bring the sector back into focus and see if we get some basing action that would lead us to believe the pain is abating.
More broadly speaking, Money flows are away from tech and into financial / commodities / energy / cyclicals as inflation fears continue. Bubble stocks continue to be under pressure and FATMAAN names remain soggy as these names remain a source of funds for re-allocation to more productive inflation sensitive sectors.
Got COAL?
While the world focuses on going GREEN, the coal sector is lighting up. Here I bring 2 weekly charts into focus. ARCH and BTU.
ARCH was up 15% LAST WEEK and is approaching a key resistance zone. A breakout above 55 would open the door to 70. Set your alarm. No need to front run the move. It may take a while for price to consolidate below resistance and finally break out.
BTU Weekly. Peabody was up 38% LAST WEEK and is on the doorstep of a major move. If price can breakout above $5.50 i think the door is open to $11 which would be a double. Notice that on both of these charts, that above the resistance areas noted that there are volume / price voids. Within these voids price can move quickly because there are few motivated sellers. For BTU, they have a new CEO so that may be an additional fundamental catalyst.
Trading COAL: I would not try to trade every wiggle in these names. If / When price breaks out, get long and buy some extra time. 3 months or more sounds right. September or even Jan 2022. Let your position grind away in the background. You can then trail a stop if it gets moving. Remember, since we are trading off the weekly charts, the weekly closes are all that matter from a technical viewpoint.
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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