Daily Profit Compass July 14

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Tickers discussed: SPY QQQ IWM  FB AAPL AMZN MSFT GOOGL  FAAMG   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.

Quote of the Day

Dr Brett wrote an article on why process is so important to trading. I don’t think I can add much to it. Find it HERE



News Flow

  • $JPM reports good quarter; counterbalanced with $WFC disaster as the report first loss since 2008 w/ divvy cut to 10c
  • $SPOT gets double downgrade
  • $GOOGL in advanced talks to invest $4B in Jio Platform


Market Snapshots



Walking off a Cliff

Yesterday was a great example of what happens in an over -extended market.Whether the catalyst was CA Covid rollback, shrinking FOMC balance sheet or rising VIX complex while market was ripping. All were clues. It is also why if you have been using “roll and protect” strategy you were likely not hurt that bad to those sitting on big embedded gains. If you did get stung. Take some notes and learn from it.  As bad as yesterday was technically, this is NOT a pile in short moment. Way too early.  THe big bearish engulfing candles need to be confirmed with follow up selling. THe last time we saw this the bulls gobbled the micro dip and negated the set up.  Although I do favor more downside, holding fire for more evidence before going “gonzo”.

On another note, terrible price action on Gold and GDX. May be evidence of a crowded long but whatever the reason, junk action. Don’t stick around hoping on this. I’d exit and recalibrate for more productive price action. If price drops much below 1800, it too may have put in a fake breakout.

Quite pleased with the recent guidance. Not piling into extended longs and rolling up to protect positions where we had gains. Now we need to line up potential shorts if this progresses. I hope to begin feeding you set ups today.

 Strategy and Tactics – Up to Bears now

  • Let’s see if the bears have any firepower left.
  • Dipsters have stepped in on micro dips. Lets see if they step in again.
  • Honor your stops on longs if they get tripped. if this turns out to be a blip, you can always re-enter.
  • Junk action in GOLD / GDX worrisome. Safe haven action was not seen yesterday but it should have been.  Turning less bullish here.
  • Watch volatility complex. VIX / VXN / RVX.   From early yesterday i was calling out rising VIX in face of ripping market. same dynamic as Jun 8.
  • Eye’s wide open though trying to keep open and flexible to new data and inputs.
  • Expecting a hi-vol summer with Covid and political headlines whipsawing markets
  • I realize its difficult, but don’t lock it on an idea or thesis. Stay open and flexible in your thinking. Let price be our guide. Stay mentally flexible here.

FAAMG Live Annotated Charts

Annotations updated today July 14

Click on the Links to view my annotated live charts

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AAPL            Daily

AMZN          Daily

MSFT           Daily

GOOGL       Daily 

Index Chart Review

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SPY 30 min

QQQ Daily

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QQQ 30 min

IWM Daily

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IWM 30min

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