Before the Bell Oct 15

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

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 

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

The ESG ( Energy Stops Growing )  Cascade and Green Transition

Looks like governments around the world are poised to force a transition to green and spiking costs be damned.

Here are the big trends I see

  • Hydro-carbon prices going higher and likely will stay there.
    • Why? Capex starvation and ESG banning investment in dirty hydrocarbons
    • Coal, NatGas, Oil all going higher.  IMO, nothing would delight the Global Climate Crowd more than $125 oil and $20 NatGas as they would use it to justify and even faster transition to Green Energy
  • Alternative fuels higher – Uranium
    • Sprott just started an Uranium Trust that is vacuuming up spare capacity which will, over time, keep a bid under Uranium
    • After a 40 year war on Nuclear, the Green Party in Finland capitulates and is now Pro-Nuclear and will lobby the EU to do the same
  • Solar -& Wind
    • Watching closely.  When do we find out that governments require solar be installed on all new construction?
    • Oct 13:  Sector makes a power move higher and many issues have broken downtrend resistance
  • Commodities
    • The world is too small to supply all the inputs required for the green transformation
    • Copper, Aluminum, Lithium, Steel……….literally there are or will be structural deficits across the board.
  • EV Cars
    • When do we get the time-line for the phase out of gas-powered cars?
      • I’m not talking about a goal; I am talking about laws banning the production and sale of gas-powered cars.
      • CA just banned gas-powered lawn mowers and leaf blowers
    • Watch EV car space. THere will be winners and losers
    • Government subsidies will support the industry

 

Order Flow Insights

Noticed a sharp pickup in activity on COTY.  As you can see, the call flow includes several monster trades with more than 10K contracts.  Also notice that most of the strikes have expirations out in time and as far out as Jan 2023.  These guys are looking for higher prices, but not anytime soon.

 

$COTY

Not a very exciting chart, but with price on the low side of the trading range, you could get long with a stop somewhat below..maybe $7.25.   If you are considering a position, I’d consider it a speculative trade / position and size it accordingly.

 

Market Insights

 

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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