Tickers discussed: SPY QQQ IWM FB AAPL AMZN GOOGL MSFT NFLX TSLA TNX TLT $CRB KRE XLF
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.
Trader’s Couch – Change
In our mentorship mastermind group I challenged participants to come up with something to work on in 2021. Dr. Brett says that in order to improve you have to change something you do everyday. Often its not the doing of the task but the angst surrounding the decision to make the change or the effort. If you often get stuck at “making a decision” simply start doing what ever you were contemplating and try it on for size. Don’t make a big deal out of it. You’ll often find by just starting, you can make incremental changes without all the drama and delay of “trying to decide”.
Earnings
Companion Video
The video is a detailed technical review of the indexes and FATMAAN names along with a few chart set ups, open position review and cannabis 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
Economic Calendar
- Retail Sales / Industrial Production / Business Inventories / FOMC Barkin, Rosengren, Kaplan speak / FOMC Minutes 2pm
- Oil inventories delayed until tomorrow due to President’s Day.
Covid continues to Roll Over
As covid cases, hospitalizations, and deaths roll over, it is fueling the narrative that the economy is on the verge of unprecedented growth as re-openings and demand return. This is driving bond yields and commodities higher as inflation expectations rise.
Bond Yields go Bonkers
10 year yields popped nearly 10% to 1.29%. Just 2 weeks ago we were at the bottom of the channel at 1%. That’s a 30% increase in yields in nearly a straight line. True overhead resistance comes in at 1.45% but there may be some resistance at the top of the channel between 1.35-1.4%
TLT Falls apart
It took a try or two, but the Short TLT trade finally clicked. Although the measured move target is 138, notice the volume over price bar at $142. I favor a hesitation / consolidation there if / when price makes it that far. THat would align pretty well with yields at 1.45%. I plan to cover the short in the $142 range.
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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