Before the Bell May 20

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Tickers discussed: SPY QQQ IWM FB AAPL AMZN GOOGL MSFT NFLX TSLA  GBTC CWH CYBR FSLY

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. Lots of retails names to note: WMT, HD, TGT, KSS, M

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

Chop Shop

The market continues to be a Chop Shop.  A great trading environment for active traders, but for swing traders working on the daily time frame, very frustrating.  Snap sector rotations where they ramp one sector while dwarfing others, then reversing 2 days later is a tough trade.  Yesterday they went after Materials and Energy while FATMAAN tech saw strong positive flows. My base case is for yet another move lower…..preferably a flush type move to a key level where we can mark a durable bottom and reposition long in the sectors we like for the Summer.  I still like commodities, energy, banks and reflation sectors and relatively bearish  high-valuation bubble sectors.   Crypto may give us signals on risk appetite.   If you are struggling with all the chop, simply step aside until we can either establish an up or downtrend to shoot against.

Trade Set ups

$CWH – Marcus Limonis is The Profit

This is Celebrity businessman Marcus Limonis’ Camping World company.  Price sits on channel support and the 50ema within a well-defined uptrend.  This is a very objective place to try a long with the availability of a stop nearby just below trend.  After a blockbuster 2020, the segment trends promise to remain robust in 2021 with consumers flush with cash and eager to get out and explore great American spaces after lock up.  Fundamentals aside, this is a technical trade. Doesn’t get much more objective than price at dual support.

$CYBR – Flat bear flag favors another leg down.

After a dramatic drop, price is consolidating in a tight bear flag.  Notice price is below all the moving averages and has re-entered the prior trading range between $120 – $95.  A break below the flag opens up a lot of downside.  T1 = $107.50   T2 = $95   Set the alarm where you’d be interested in making the trade. Somewhere between $115-$117.

$FSLY – Bracket Trade Set up

The stock broke down hard after earnings and has since respected the opening high-low bracket range.  With a $10 gap above to fill and literally no technical support below, this seems like a name that has the potential to be a nice trade depending on which way price breaks.  The set up favors lower but does not warrant trying to front run the signal.  Alarm $40 for a breakdown and alarm $47.50 for a break into the gap.

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 and QQQ are on Daily SELL signals. IWM will likely trigger soon. Watch for potential breaks of the prior lows. A break of those lows would trigger a fresh sell signal and likely usher in more selling. 

SPY 2 hour

SPY 30 min

QQQ 2 hour

QQQ 30 min 

IWM 2 hour

$IWM 30 Min 

 

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