Before the Bell May 11

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Tickers discussed: SPY QQQ IWM FB AAPL AMZN GOOGL MSFT NFLX TSLA

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

Momentum Crushed

THe Selling intensified for the bubble / momentum portion of the market. Emblematic of this sector of the Market is the ARK family of ETFs which focus on disruptive technologies / companies. THese companies have super high valuations but very little earnings and cash flow to support valuation.  I review all the ARK ETFs in the video. In general, all have either lost their 200ema’s or are challenging it now.  THe question now is if the sell off in these names infects sentiment and broadens out to bigger and more profitable names.

One thing that concerned me yesterday was the reversal / fade in commodities, Financials, and energy.  THese have been strong sectors. While one day does not make a trend, watch these sectors closely. If they start falling apart, it will be a sign the sell off is widening.

Watch Semis. They’ve been breaking down and are a good gauge of risk sentiment. Watch for more intense selling and / or stabilization for clues that the selling is abating.

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 Daily

SPY would trigger a sell signal on a break below $410.50

SPY 2 hour

SPY 30 min

QQQ Daily

QQQ triggered a daily sell signal on the break of the primary trend line off the March 2020 lows.

QQQ 2 hour 

IWM Daily

I have a Daily Sell signal being triggered on a break below $215

IWM 2 hour

$IWM 30 Min 

 

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