Tickers discussed: SPY QQQ IWM FB AAPL AMZN GOOGL MSFT NFLX TSLA
The Daily Profit Compass 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
Big Banks kick off the earnings season on Wednesday.
April Earnings Preview
While not comprehensive, the calendar highlights most of the big names scheduled to report this month beginning next week with the money center 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. Run the video at 1.25x to reduce run time.
Find the Video HERE
Snap Rotation ( they did it again )
As they have done so many times in recent months, they pulled a snap rotation with tech being soft, and with money piling into energy, materials, and financials.
Strategic Look
These snap rotations have been tough to time and just at the point you think you have a trend, they pull the rug and rotate elsewhere. It might serve us well to keep the big picture in mind as a backdrop.
- The economy WILL re-open; that should be positive for real economy stocks
- Odds favor higher bond rates over lower rates. That should be a tailwind for financials and cyclicals but a headwind for bubble tech.
- Mega cap tech: Although rising rates are not great for tech, I think mega cap tech will hold its own as it has rock solid earnings support ( unlike bubble tech )
- Materials / Resources / Commodities: Taken together these have been in a 10 year bear market. That is changing. The $CRB commodity index hit a 2 year high. Ag commodities have been running which has fueled fertilizer stocks like CF, MOS, NTR, CGA along with DE etc. Looking for a “golden age” of commodities at least for the next couple of years. Look at the 1970’s and the period of 2000-2007. When commodities run they can do so for years. Dont think you missed it.
I think the backdrop remains bullish for the reasons cited below.
- Bullish Tailwinds
- New Highs are bullish ; not Bearish
- The run up into the next earnings cycle is usually bullish
- Seasonality: 15 of the last 16 Aprils saw price on SPY go higher
- TLT / Rates. Rates have taken a breather but IMO it is a pause before rates head higher. THat would be bullish commodities, cyclicals, banks. Potentially bearish high-flier bubble stocks but we’ll suspend judgement until that day comes.
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
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
