Daily Profit Compass Feb 1

Tickers discussed: SPY QQQ IWM FB AAPL AMZN GOOGL MSFT NFLX TSLA Sector SPDR ETFs

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 

Tuesday will be a big day this week as BABA, UPS, AMZN, GOOGL, and CMG are set to report.  Although to this point mega-cap tech earnings have been nothing short of stellar, the reaction to those earnings have been poor as most names trading appreciably lower since reporting.

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. Trade ideas are also discussed.

Run the video at 1.25x to reduce run time.

Find the Video HERE

Economic Calendar

  • Monday:  MFG ISM and PMI; construction spending; Bostic / Rosengren speak
  • Tuesday: Redbook; Williams and Mester Speak
  • Wednesday: Mortagage applications; ADP ; PMI Composite; ISM Services; Harker, Mester, Bullard, Evans, Kaplan speak
  • Thursday: Challenger Job cuts, Jobless Claims, Productivity, Factory orders,  Daly speaks
  • Friday: Jan Jobs report; Consumer credit.

/WSB rolls into Silver

Like a swarm of hungry locusts, the /WSB crowd has migrated its attention to Silver ( SLV ) where they maintain there is a large structural short in place.  Overnight they’ve successfully been able to pop silver around 10% near the $30 mark. As you’d expect, Silver miners are seeing quite a pop in the premarket with many names up 10% – 30%. AG / PAAS / MAG.  Robinhood and other brokerages continue to throttle trading in GME and other targeted names of last week. We’ll have to see the effect on trading.  Also it was pointed out that GME, that used to represent a tiny fraction of the XRT ETF has now ballooned to about 20% of the ETF.   If / when GME ultimately collapses, XRT may be a better way to try and trade the situation than GME directly.

Broader Markets

Broader Markets roll out of January down slightly for the month after closing poorly last week off about 2-3% for the week.  Markets are bouncing up about 1%  this morning so per our normal cues, we need to be aware of the open gap below at the open. While certainly not a given, these open gaps below often are just too irresistible for traders to sell into. Be aware of the set up at the open.

More broadly speaking, the macro backdrop remains largely bullish as the vaccine rolls out and optimism about the  re-opening persists. THe problem is that sentiment remains off the chart bullish. That isnt a timing signal but remains a concern.  Resource and materials along w/ reopening trades have been beat up over the past 2 weeks. I want to look for a good entry point on these names. I think the re-opening trade will work but we’ll have to get the timing right.  Watch the $USD here. A rising $USD will slow re-opening names. A falling $USD will be a tailwind.

FATMAAN Names

In the companion video, I cover off the FATMAAN names using the daily timeframe. Some very interesting trade locations are on the horizon that will set up well for swing traders on the daily time frame.

Sector Studies

Today I quickly go through the ETF’s to identify the trade locations

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 Daily

SPY 2 hour

SPY 30 min

QQQ Daily

QQQ 2 Hour

QQQ 30 min

IWM Daily

IWM 2 hour

$IWM 30 Min 

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