Before the Bell May 28

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Tickers discussed: SPY QQQ IWM FB AAPL AMZN GOOGL MSFT NFLX TSLA  $TNX $WTIC SMH LAC CCJ

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 

As we move to the back half of earnings season we’ll see a lot more retailers and regional banks.

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 and Downgrades

Reddit Army comes Storming Back

In a week where the indexes and FATMAAN complex have been relatively docile, the reddit army is back at it in the meme stocks.   GME / AMC / KOSS and a few others are seeing wild intraday moves. If it is excitement you seek, maybe you are already aware of these names and perhaps even actively trading them. Is this a sign that froth and rampant speculation is back?  Maybe.   If rampant speculation is back, I’d focus on bitcoin and Etherium as risk appetite tells.  Back on the meme stocks.  I think since the first episode in these names, market makers have gotten smarter. These guys are paid after all, to win. They immediately jack implied vol to the moon making option bets ultra expensive.  If you are trading this space, do so with lottery monies that you are fine losing. Getting out over your skis here is a recipe to take you out of the game.

Trade Ideas  

I continue to like the commodity and base materials space. Below are 2 chart set ups that I like.

$CCJ –  Breaking higher

Uranium producer Cameco continues to be bid as it dawns on the world that it is impossible to achieve a carbon neutral world without nuclear power. Fundamentals aside, the reason I like $CCJ is because of the technicals. Price is breaking higher from a bull flag consolidation and taking out resistance in the process. On the chart I have overlaid the measured move target at $23.50. I like $CCJ higher.

Liking $LAC

After a hefty 50% pullback, Lithium America looks to be turning the corner.  Price has taken out the downtrend line as well as recapturing all the moving averages. I see $16 as T1 but then if price can break higher from there, T2 lies at $19. Note the big volume / price void between $16-$19. Price would likely move quickly through this area. I like targeting the July $15 Calls.

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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