Daily Profit Compass July 15

Tickers discussed: SPY QQQ IWM  KHC JMIA KR NEE   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

One of the things coming out of our mentorship workshops in just the first couple of sessions is the commonality between the struggles of traders. Despite being thousands of miles apart, diverse ages, and wide range of market experiences, the struggles we all have on our journey of improvement are remarkably similar. As we work on ourselves to become better traders, the thoughts that Tom Canfield captures so well should be held close at hand. Personal development is often an imperceptibly slow process. Although we may not feel progress, what we are really doing is consolidating prior gains before the next big breakout….just like a stock. Keep grinding traders. You’re improving and you don’t even know it.

 

Earnings

News Flow

  • Futures jump on Moderna vaccine data release
  • Trump administration backs off on Chinese student restrictions after pressure from Colleges.
  • Trump announces removal of Hong Kong’s special trading and banking status.  Now it’s just another Chinese city.
  • The NYT loses another centrist voice as editor Bari Weiss resigns
  • More bank earnings due out
  • Jul 15 is tax day; get it in if you have not already

 

Market Snapshots

 

 

Bull Surge

Yep. Dipsters bought the micro dip. Bears were in control for about 2 hours, that was it.  Bulls got a nice bounce off support in the morning, then fought a long battle around SPY $314-316.50 for control. Once 316.50 was taken out, $318 was in the cards as outlined in the mid-day note. Bulls even got an AH kicker in the form of Moderna releasing its results hinted at a month ago on its vaccine. Futures are up big.  Looks good for bulls at least for now. Watch out for the big gap below on the open. You know the trick trap fool and frustrate crew would love to nose dive it to fill that gap, scare everyone, then reverse it.   Just be ready. If you’re nimble, I present some trading tactics on the chart annotations.

 Strategy and Tactics –  Bears fire a blank

  • Bear firepower for follow thru was non-existent. Powell and company or whomever have the big guns.
  • Massive OH gap to fill on SPY to 329.
  • XLP names looking strong.;  QQQ may pause here. Watch FAAMGS for clues.
  • GDX had a nice bounce back day. lets see if it can build on it.
  • 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

FB                  Daily

AAPL            Daily

AMZN          Daily

MSFT           Daily

GOOGL       Daily 

Charts in Focus

$JMIA – The Amazon of Africa

Failed IPO $JMIA took a long journey down but now is coming back to life. Seeing more buying interest and a more productive looking chart. I like the idea of taking this long above $8.50. Make price prove it by taking out the 200ema and massive volume / price resistance. Above $8.50 there looks to be legit running room.   Alarm it and be ready.

$NEE – Ready to make a run at the highs?

Utility NextEra has a nice little set up forming. Looks poised for a breakout above $262.50 for a run to the prior high.  RSI has broken trend and PPO has a bull cross working. Additionally, price is above all the bullishly stacked emas.  I like this one to breakout.

$KR – No drama over at Kroger

As noted in an earlier market note, Staples have been strong and are breaking out. $KR is a nice example of steady performance with its RSI and PPO operating in their bullish regimes for a year without even the March rug pull doing a ton of damage. Currently KR is in a 9% wide consolidation box and threatening a breakout. Alarm $35.50 and take it long for a projected move to $37.50 ish.  This isnt ROKU so plan for a steady move vs an explosive one. I’d go 2-3 months out on your options strike. Give it time to work

$KHC – Back at the gap Jack

Another XLP name grinding higher.  Kraft Heinz is back at it’s massive gap after a nice consolidation. One way I was thinking about this is just to go out to Jan 2021 with slightly out of the money $35 calls for $2.10 and just let it grind away and not try to get fancy. A very good chance that come January, you’re gonna like the way you look. Of course, set a stop. Just because you may have a long term view doesn’t mean facts on the ground can’t change.

Index Chart Review

SPY 2 hour

SPY 30 min

QQQ 2 hour

QQQ 30 min

IWM 2 hour

IWM 30min

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