Before the Bell May 26

Did I help you profit?

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

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

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.

Inspiration –  Wisdom from 500 B.C. 

Deep thinkers from the beginning of time point toward the truth. The question is, when will you believe it and do something about it?

Earnings

Some marquis names this week. ZOOM, BBY, JWN, DKS, NVDA, SNOW, SPLK, BABA, M, DLTR, DG, BIDU, COST, ADSK, ULTA, WDAY,

Today’s 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  1.5x to maximize efficiency without loss of clarity.

Find the Companion Video HERE

Macro Data Releases Week of  May 23

  • Monday – Chicago Fed; Bostic @ Noon
  • Tuesday – Composite PMI, New Home Sales, Richmond Fed, 2 yr Note Auction 1pm
  • Wednesday – Durable Goods, Oil Inv., 5yr Bond Auction, FOMC Minutes
  • Thursday – GDP, Jobless Claims, Pending Home Sales, NatGas Inv, KC Fed, 7 yr Bond auction 
  • Friday – Intl Trade, Personal Income & Outlays, Consumer Sentiment, Rig Count

$MTUM Re-balance portends to be impactful

The $MTUM ETF has traditionally been piled into tech stocks because they’ve been the momentum names. But now as tech has stalled, the momentum is in energy and materials. $MTUM is going to do it’s semi-annual re-balance next week. THe key thing to understand about this rebalance is the relative size of the assets. Imagine selling down a position in AAPL that is a $2.4T market cap company and then piling those assets into energy names 1/10th the size.  Think a firehose into a thimble. THis could really spark the next leg higher in energy. Certainly big names like XOM and CVX will see inflows. XLE is an easy way to play given XOM / CVX are about 50% of this cap weighted index.  On the flip side is the selling of mega cap tech which could be significant and may move the needle. Find and ETF web-site to look at the top components of the MTUM ETF where most likely a lot of selling is slated to occur.

Do your homework on this one.  This is a thumbnail of what’s going on.   Find the article HERE

Oscillator Update

Normally the week after a big OPEX is a dangerous time for markets. As lots of delta and gamma roll off, markets more easily able to find a new level of trading. THis month-end buying may tilt the balance to the upside. Also note, FOMC $65B of balance sheet QT is slated to start on June 1.

Macro Framework Spring / Summer 2022

Find the Blog Post HERE

Earnings Season & Bracket Trades

As earnings season kicks into gear, a reminder that this is prime time for Bracket Trades. Bracket Trades are those trades created when a stock gaps up or down from a news driven event. Bracket Trades are set up as “2nd day trades” where you alarm the high and low of the prior day’s trading range, then patiently wait for price to either break lower or higher from the range.  You then follow price out of the range. I will do my best to help identify them for you, but you can easily find them yourself by doing a sort for “GAP ups” and “GAP Down” on your trading platform.  I add additional filters for only stocks above $10 and at least 500,000 shares traded. You can add additional filters to cut down the sort further. Generally speaking, stocks favor continuing in the direction of the gap higher or lower.

You can find out more about Bracket Trades in the video Run the Player at 1.5x      HERE.

 

INDEX CHARTS

Use the following pivots and levels in your active and swing trading.

SPY Daily

SPY 1 hr

QQQ Daily

QQQ 1hr

IWM Daily

IWM 1 hr

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.