Before the Bell May 5

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

Before the Bell provides stock market technical analysis for the stock market today and is 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. Run the video at 1.25x to reduce run time.

Find the Video  HERE

Upgrades / Downgrades

Yellen’s Foot in Mouth Disease

So Treasury Secretary Yellen tells folks that with the economy running so hot, interest rates may need to rise to prevent runaway inflation.  Mind you, this is from the former FOMC Chair who never once raised rates over her tenure.  After seeing the rug pull in the market, she was backpedaling  from her  comments and walking them back.  Funny how that happens right?  Look. Regardless of the FOMC actions / lack of actions the market will take rates where ever their place is…most likely higher.  Commodity inflation is all around us and GDP is doing a moonshot.  THe most instructive thing from yesterday was reinforcing that QQQ is still the most vulnerable to interest rate rises or Fed tapering.  I think money is rotating out.  Lets keep these ideas in mind going forward.

Commodities are breaking out from a 10 year bear market

Commodities are breaking above a 10 year monthly downtrend line and is pushing above 5 year resistance at 202.  A further push would target 230, 270, 310.  Although we wont know until we look in hindsight, we may be in the early stages of a commodity super cycle as demand for copper and other commodities explode.  Important in all this is understanding that in most commodity sectors there has been a lack of investment for a decade.  You just can’t turn on more copper supply.

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.

SPY 2 hour

SPY 30 min

QQQ 2 hour 

QQQ 30 min

IWM 2 hour

$IWM 30 Min 

 

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