Tickers discussed: SPY QQQ IWM FB AAPL AMZN GOOGL MSFT NFLX TSLA TAN
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
Earnings kick into a higher gear this week. KO / IBM / JNJ / PG / NFLX / NEE / VZ / LCRX / LVS/ CMG / AXP / HON are among names that may shape sector performance and sentiment.
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
Upgrades / Downgrades
Sucker Punched
Yesterday President Biden introduced a massive climate initiative coupled with an equally massive proposal to partially pay for it.
Climate Initiative
Under the proposal, the US would commit to a 50% reduction of 2005 level greenhouse gases by 2030. This is double the reduction proposed by Pres. Obama just a few years ago. From what I have read, the US has already reduced those CO2 emissions by 13% vs 2005 levels. If that’s true, the US would need to quadruple the reductions within 9 years. It would take a monumental effort across all sectors to even come close….and it wont be cheap. On the market front, green energy names got a lift. ( EV, Battery, Solar etc ) It was interesting to me that TSLA did not participate in the EV bounce.
Capital Gains Tax Increase Proposal
To help pay for both current and future spending, its been proposed that the Cap Gains Taxes be doubled from 20% to 40% for high earners. The Markets did not like the idea and sold off hard into the close.
Pulling it together
Keep in mind, all of the above are just proposals. Are these trial balloons or opening bargaining positions? No idea, above my paygrade. We need to watch markets and levels carefully. Momentum is waning but no significant downside price violations have yet occurred in the broad market averages. That said, no one ever knows what might prick the bubble or when. Luckily we wont have to guess. Price will lead the way and we will watch levels for clues on how we should be positioned and then take advantage of it.
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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