Before the Bell October 28

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.

Earnings 

Major earnings week ahead as FATMAAN reports.

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

Bond Yield Turbulence  

Bond yields have made dramatic moves over the past couple of days.  THe yield curve is flattening.  Said another way, the front end rates are rising and the middle and back end of the curve is falling.  THis is bad for banks and is a result of inflation fears.  Fast moves in the bond market are not appreciated by the equity markets, We’ll need to watch this closely in the days ahead.

Macro Data Releases Week of October 25

  • Monday – Chicago Fed Activity index; Dallas Fed MFG index
  • Tuesday – CaseShiller housing index; Multiple Housing data points; Consumer sentiment; Richmond Fed Mfg Index; Money Supply at 1pm
  • Wednesday – Mortgage applications; Durable Goods; Intl Trade; Retail inventories; Wholesale inventories, Oil inventories, 5 yr bond auction 1pm
  • Thursday –  GDP, Jobless Claims, Pending home sales; NatGas inventories; 7 yr bond Auction 1pm
  • Friday –  Employment Cost index; Personal Income; Chicago PMI; UM Consumer Sentiment

 

Market Insights

More on ESG ( Energy Stops Growing )

Fink Flop

Larry Fink, the CEO of the famed Blackrock with over  $9T of AUM, has been a vocal advocate and champion of the Global Green Energy Transformation.  He has a huge influence through his Blackrock ETFs to  advocate for ESG certified funds / companies and to actively encourage major pension funds to divest itself of carbon / fossil energy companies.  Fink was the chief architect in getting a no-name 3 person Activist firm installed on the BoD of XOM.  They are now shaping policy at XOM to kill carbon CAPex and divert those monies into Green energy alternatives.

One thing the Green Team didnt plan on was a spike in global energy prices that are hobbling countries across the globe.  Now Fink, is in flip -flop mode, but it’s too late. We all know the game plan. Kill carbon and accelerate the green transition. The problem is the middle class and poor pay for this transition w/ rising energy costs.  Not gonna go Doomsday Prepper on you, but all the elements of civil unrest are in the pot on a slow simmer.  When / if you see gas prices move into mid – high single digits, coupled with power bills doubling or tripling, then that simmering pot will go into a raging boil.  Meanwhile, Fink and the other elite Greenies could care less how much it costs to fill up their G650XR jets.

To be clear, I am for clean and green energy, it is the transition plan that I feel is deeply flawed.    Read more about the Fink Flop  HERE

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.

RSP  – SPY Equal Weight

We can see that price recently broke out to ATH’s.   But now price has broken back below the level of the breakout, giving a false breakout look which is bearish.  Bulls need to get price back above $157 to negate the immediate concerns.

$QQQE – QQQ Equal Weight

Note the double top look coupled with the bearish divergences present in the indicators.  THis is  a bearish look. That said if price were to break out to ATH’s then much of the concern would be abated.

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