Daily Profit Compass Jan 12

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

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 

 

Trades about to Happen

Pay Attention to Walgreens and CVS

For the most part, CVS and WBA have been a killing field for longs. But now, both are on the verge of changing that.  Sure, neither name will move like a software or other tech name, but that may be a blessing if / when vol returns to the market.  See the details below.

$WBA

Price has taken out a well-establish 2 year down trend line and cleared the first level of OH resistance at $47. Price is also trading above all it’s ema’s which should offer multiple levels of support on any weakness.  I like it long right here with a target of $57.50 over time.

$CVS

Range traders have been having a ball with CVS for 4 years.  BUY $55 and SELL $75 has been a gravy train but now, that maybe coming to an end.  Price is making a concerted effort to take out that wall of resistance at $75 and finally put it in the rear view. If it can, price will have massive support below $75 and have a technical target is $95. Let’s get a confirmed weekly close above $75 and then use that line to shoot against on the long side.  On this one I favor looking out in time on the option chain. Maybe even 6 mo to a year and simply let it grind away.  THis one also makes a great candidate to sell PUT Spreads below to juice returns and pay for theta decay on the long leg.  With this set up so well defined it could not be more clear.  Long above $75 but if price closes $75 on a weekly closing basis, kill the trade.

Nothing chilly with how Carrier is trading

Price is emerging from a $5 wide consolidation box that targets $46 as a first target. Get long now against $41 with a stop just below.  The HVAC space is poised to be an under-the-radar beneficiary of a “Green New Deal” as old buildings with inefficient heating / cooling systems are targeted for retro-fitting to eco-friendly units.    Other tickers in the space to watch are $TT, $JCI, and $LII

Is $GOGO set to go, go?

$GOGO is again testing the top of it’s consolidation box near $11.  The $3 wide box projects a move to $14 with a break and hold above $11.  GOGO recently sold off it’s unprofitable commercial aircraft internet business and is now focused on its profitable segments. Worth an alarm just above $11 for the heads up on the breakout when and if it comes.

FATMAAN Pivots

$FB –  Use $260 as your pivot.  Stay short below, ok to be long above. A break below $255 opens up more downside

AAPL –  A break below $128.50 favors more downside; A break above $130 favors a gap fill to $132

TSLA – TL support comes in at $800 but if that does not hold, then here comes the unfilled gap at $778.  IMO this needs to consolidate

MSFT –   Easy technical set up.   Use $217.50 as your pivot. Below opens downside to $214.  Holding above $217.50 keeps the chance alive for a run back to $220

AMZN –  Stock in no man’s land but if price can recapture $3130 you can be a buyer if you’re nimble. Other wise $3100 is support and is your pivot level. A break below would favor 3050.

GOOGL –  Price smack dab in the middle of the range. Use $1755 as your pivot. Above can be long looking for $1795, but a break below Favors $1720 – $1715 as tagets.

NFLX – $494 is first support and $505 is first resistance over head. A break below $494 favors a run to $477.  A move above $505 holds the possibility of a trend reversal.

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

The PPO bear cross is cautionary but for traders on longer time frames I think staying long against $376 is the right trade. If there is a pull back into gap support at $376, I’d be a buyer with an object long entry against the gap. If $376 fails then a re-assessment would be needed with the likely conclusion that more downside is in order.  Get short if price enters the gap below $376

SPY 30 min

On this time frame, stay long against $378. A break of $378 favors a move to $376 and would be worthwhile to be short but I’d be covering at $376 as a bounce would be favored

QQQ 2 hour

Simple set up. Use $314 as your pivot.  Long above. A break below favors a move to $310 for starters with the possibility of filling the gap to $307.50

QQQ 30 min

The levels are clear and well-defined. Bulls are fine as long as yesterday’s low holds. A break below however would likely bring in more sellers.

IWM 2 hr

Relative outperformance continues for IWM.  $204 remains the bull  bear pivot. Stay long above, but get short on a break below $204. There is a volume / price void from $204-$200 and I’d expect a fast move to the top of the gap at $199.

IWM 30 min

If price breaks above $208, buy it and set a stop just below.  If price breaks above $208, but then reverses back below $208, I’d look for a short against $208 with an eye on 205 / 204 to cover. Any price move below $204 is an outright short with the top of the gap below as the target.

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