Tickers discussed: SPY QQQ IWM FB AAPL AMZN GOOGL MSFT NFLX TSLA ARKK ARKF ARKG ARKW ARKQ PRNT
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
Slow week on the earnings front but still some noteworthy names. LEVI, JKS
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
Downgrades / Upgrades
Meet the New Boss; Same as the Old Boss
Watching relative strength between one asset class and another can give important clues about money flow. In the chart below QQQ is plotted against IWM. Since the September peak for the FAAMG names, and after the early November re-opening moonshot with the vaccine announcement, IWM has been outperforming QQQ ( downtrend on chart ). But now over the past couple of weeks, IWM has gone soggy and FAAMG has come alive. Now we see a relative performance breakout in the Q’s as they take out downtrend resistance. Will the outperformance last? THe simple answer is I don’t know. THe lead-in to earnings should be bullish. From a market cap perspective, these are the stocks that move the index needle. FB / MSFT / GOOGL are at all-time highs. AMZN and NFLX are driving higher with strong charts. The one name I don’t like is TSLA. Air is coming out of the EV stocks in general along with the bubble stocks. Money is finding names with earnings support. In other words, meet the new boss, same as the old boss. We will know if the emerging trend is durable by watching the charts like a hawk for signs of a stall, but for now FAAMG looks strong.
- 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
- ARK Family Of Funds
- High Valuation / lack of earnings support should be headwinds
- Not necessarily a short but certainly be cautious of longs
- As far as tech goes, money is flowing into known quantities with known earnings and some element of defensiveness. FAAMG names.
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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