Daily Profit Compass April 28

Did I help you profit?

Please consider making a modest donation to help me continue producing valuable content.

Tickers discussed: SPY QQQ IWM SBUX SMH WORK ATVI  Strategy & Tactics

The Daily Profit Compass provides the stock market analysis for the day. Key levels and trading locations for the indexes are provided, along with trading plans and timely commentary to keep you on the right side of the trade.

Trader’s Couch

A short cut for mastering markets

Many aspiring traders like myself set out with all the ambition in the world to master and conquer markets. We spend years and years trying to learn how markets work and search for the keys to unlock the fortunes that it holds. We may glimmers of success here and there, but we are left unsatisfied. It’s not until we discover that the key to mastering markets is mastering ourselves. So instead of wasting many years searching in the wrong places and working on the wrong things, begin the task of working on yourself. It’s not easy but at least you’ll be focusing your effort in the right place and on the right things. Buy a 5×7 mirror and put it on your trade station desktop. It will be a constant reminder what you should be working on.


GOOGL on Tuesday AMC   MSFT / FB Wednesday AMC   AAPL / AMZN Thursday AMC   plus lots of other notable names this week.

News Flow

  • Medical experts predict COVID returns in the fall.
  • Did $CCL get a back door bailout from Secret Santa Mnuchin?   See Story HERE  And in the WSJ if you subscribe HERE
  • $BA CEO doesnt see travel returning to normal for 2-3 years.  Voluntary layoffs / buyouts begin soon.
  • Stifel and Jefferies analysts jump on the marine tanker bandwagon  HERE
  • $BP profit nose dives 67% ; Crude continues to get pounded Boris Johnson goes back to work. Encourages UK to remain locked down.
  • NY AG says $AMZN safety measures inadequate
  • Mortgage chaos threatens to worsen once it’s time for repayment
  • OSHA inspections are key to re-opening but staffing is at a 45 year low. ( oops )

Small Caps Breakout

Something significant happened yesterday and it has the potential to be a game-changer.  The Russell 2000 IWM index had an impulsive 4% breakout above it’s Dec 2018 low.  The move dwarfed the moves put in by both  the SPY and QQQ.  Until this point, the bounce off the March lows has been relatively narrow and focused mostly on the FAAMG names.  During this time as other indexes and stocks challenged 50% and even 61.8% fib retracements, the IWM couldn’t even muster taking out its 38.2% fib.  The IWM is a risk-on index.  The breakout may be a sign that the rally is broadening and that traders / investors are hunting for opportunities in smaller, less well capitalized companies.  That would be a very encouraging for bulls.  So going forward, keep an eye on IWM as a risk -on indicator. $125 is your line in the sand.  A back touch of $125 would be a common technical move, but that back test has to hold.  If it does, it would be a great place for a long entry if you missed it. If however price begins trading back below $125 it would likely signal a false breakout and would be very bearish.

Sector Summary

Financials had a big day. This helped the IWM which is loaded with financials


Wave 2 DATA

4/28 Redbook / Case-Shiller / Consumer Confidence / Richmond Fed Survey / FOMC Meeting starts

4/29  GDP / FOMC Announcement 2pm w/ Presser

4/30 Jobless claims / Personal Income / Employment Cost index / Chicago PMI

5/1 PMI Mfg Index / ISM MFG index / Construction Spending / Rig Count

Charts in Focus

For all the charts on individual names, please check for earnings release dates!!


The high, tight bull flag looks promising. A breakout above $68 favors a move to the bull flag measured move target of $73


Earnings after the bell tonight. A pop and hold above $80 gets this back on track. A rejection sends it the other way. Key spot technically.


Go long on a break above $135 with a stop just below.


Hard stop below $26. Good chance to make $30. Sector tailwinds.

Strategy and Tactics – Neutral / Bullish

Trying not to be FOMO bullish, but picking spots. Got long IWM on the breakout as the set up was outlined in yesterday’s note.  Took a baby short on TLT May 1 168P

Positioning Update: long IWM May 8 $127 C ; Long GLD May 160 C. and  GLD May 165C ;  Rolled GDX  May 31C to May 35C ; long DHT Jun $8 calls; TLT May 1 168P small

Index Chart Review

SPY 2 hr

SPY 30 min.

QQQ 2 hr 

Be aware of the FAAMG names reporting this week beginning tonight after the bell through Thursday. THe Q’s will be subject to aftermarket moves in either direction. Take this into consideration on any overnight holds you may be considering.

QQQ 30 min

IWM 2 hr

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

Spread the word?


Leave a Reply

Your email address will not be published. Required fields are marked *