Daily Profit Compass Aug 26

Did I help you profit?

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

Tickers discussed: SPY QQQ IWM  Commodities  WW   ZBH  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 

If events in either your trading life or your life outside the charts knock you off-center, return to gratitude.  99% of the people on this planet do not have money to trade or invest. Get over your bad trade or whatever is bugging you by being thankful and deeply appreciative of what you’ve got.  This approach will quickly re-center and stabilize your core and then you’ll be better able to tackle whatever it is in front of you.

Earnings

News Flow

  • The Fed is seen holding rates at 0 for 5 years in new policy.
  • Violence in Kenosha intensifies as 2 fatally shot.
  • Hurricane Laura rapidly grows to Cat 4 storm
  • Cloud Sector sees lift thanks to $CRM blowout

Got Diversification?   Commodities come to Life

A great place to find truly non-correlated assets as inflation and demand pick up. More in-depth coverage coming soon.

Pausing for Powell

Jerome Powell speaks from Jackson Hole tomorrow .   It is a traditional venue where any new thinking about monetary policy is presented. It has been widely circulated that Powell will make some kind of announcement about inflation and how the FOMC is thinking about it.  Powell is growing into this job and I think he know knows what to do to keep markets inflated. Hard to see any policy decision derailing the market before the election, but for whatever reason, the market often fades Powell no matter what he says. Expecting more of a quiet drift higher into the speech tomorrow.  Be ready for anything, but that’s the expectation. Speaking of pausing, the great rotation to value paused yesterday. They stopped piling into Airlines, cruise lines, hotels, banks etc. Keep an eye on these sectors for clues.

CRM had a big lift yesterday on the DOW inclusion plus they knocked the cover off the ball on earnings after the bell.   Will probably lift cloud names and tech in general.

Strategy & Tactics

No Changes – Maintain Bullish bias; be cognizant of the many yellow flags

  • FAAMG – THe 60 min levels on these names have been pure gold. Use them to your advantage if you are an active traders.
  • Staying bullish does not mean complacent
    • Stay vigilant! Ratchet stops / Strikes higher on your winners and keep exposure at manageable levels.
    • Dont be afraid to go short if you get a price signal; especially if you’re holding a bunch of longs. You’ll like that balance on red days. 
    • Mark clear levels on your holdings for exits; honor those levels on a pull back.
    • You know they can pull the rug at any time for no reason at all.
  • Stay Fluid and flexible in both positions and thinking; Dont lock in on Narratives.
  • Expecting a hi-vol summer with Covid and political headlines whipsawing markets

Charts of Interest / Trade Ideas

$WW – Weight Watchers

Nice well-defined range with price at support. A break below $23 would send this tumbling lower toward a measured move target of $18.  A breakout above $28 should open the door to the low $30’s.  Another option is to BUY it here at support and look for a move to the top of the box …..a $5 move aint all bad.

$ZBH

Consolidating nicely under key resistance at $140. Alarm $140 and when it triggers BUY it.  My expectation is a run to the prior high at $160 but may see a hesitation at $150 where there is a small layer of resistance.

Active Trade set ups / Positions

++++++++++++++++++++++++++++++++++++++++++++++++++++

AUG 25 Activity

NIO – Bought on breakout above $16.

PINS – Stopped for 30% loss. Nice idea, wrong result.

Aug 24 Activity:

TWTR – Opened Sept 41 C for $1.73 on breakout

PINS – Opened Sept 32.5 puts at $1.83   on a breakdown from a consolidation range and into a wide open gap.

Aug 20 Activity: 

XRT- Extreme bearish order flow has again picked up with big players shooting against our long position. In the face of soggy retail numbers and the bearish order flow we closed the Sept 50 Calls for $3.05

$V Rolled stops to breakeven

Aug 19 Activity: 

Trade Idea to get long $V  at the money Sept  Calls against $200.

Aug 13 Activity

$XRT – Sept 50 C ; Closed 1/2 of position.  Entered Aug 5 at 1.90; closed at 2.90.   On the other 1/2 of position sold Sept 53 C for $1.20 credit.  These moves were prompted by extreme bearish order flow into the Aug 28 exp $51 puts over 15,000 x.  Retail Sales and Retailer earnings forthcoming.

EBAY  Opened Sept 60 calls. $1.23. Looking for a move back to the highs

$IBB Closed short position for a small loss.

 Aug 12 Activity

$INTC  I finally gave up on this short. More a time thing than price hurting. Closed Sept 47.50 Puts for about a 30% loss.

$GLD  Re-entered short with Aug $180 puts. Needs to move rather quickly, if it does not, will need to exit or buy more time.

Aug 11  Activity

$IBB – opened Aug $132P   $2.32

$MNST – opened Aug 80P looking for gap fill coming out of bracket low.   $1.02

$CF – Taking a shot at Sept 40 C  at 45c.   after players hit that strike 2600x ++

$DNKN –  opened Sept 72.5 C  looking for a breakout ahead of earnings after the Sept options expiration.

$GLD  Closed puts for massive 340% win.  looking to re-enter;

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

$UUP – Initiated Sept UUP Sept 25.50 calls  Aug 3    looks like a fail. Will post if i exit

Index Chart Review

SPY 30 min

QQQ 30 min

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?

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on pinterest
Pinterest

Leave a Reply

Your email address will not be published.