Before the Bell May 10

Did I help you profit?

Please consider making a modest donation to help me continue producing valuable content.

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 

 

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

Spread the word?

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on pinterest
Pinterest

Leave a Reply

Your email address will not be published.