Tickers discussed: SPY QQQ IWM FB AAPL AMZN GOOGL MSFT NFLX TSLA ZBH LVS BABA
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
Companion Video – Will Return Tomorrow.
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. Run the video at 1.25x to reduce run time.
Find the Video HERE
Q’s Fight Back
Traders are finding value in the FATMAAN names that have earnings support within the rising rate environment. THat said we have multiple cataysts for rates in the days ahead. Retail sales today at 8.30. 20 year bond auction today at 1pm and 10yr TIPS tomorrow at 1pm. THat will be followed by the FOMC big reveal at 2pn followed by a Powell presser at 2.30 tomorrow. Another rate spike would probably put the kibosh on the QQQ resurgence, especially on bubble stocks. Watch IWM closely as some are calling for a pull back.
Discussion Topics
- Q’s make peace with higher rates and outperform
- IWM is soggy following a downgrade by Mike Wilson at $MS
- Eq. Weight S&P $RSP is outperforming cap weighted SPY
- Bond Yield Catalysts: 20 yr auction today at 1pm; 10 yr TIPs tomorrow at 1pm. ; FOMC tomorrow beginning at 2pm followed by Presser
- FATMAAN names stabilizing. FB / AAPL / TSLA looking more constructive but still work to do.
- Trade Ideas: ZBH / LVS / BABA
Order Flow Insights
Order flow trends flagged $FB / $FUBO / $SNOW as unusual bullish buys. Note the PUT flow in IWM which is cautionary.
Trade Ideas
$ZBH – Zimmer Biomet
Med Tech name Zimmer has been consolidating for 3 months. A break above $165 should send this to $175 plus.
$LVS – Las Vegas Sands
The gaming segment has been strong. LVS has a very objective long set up as it consolidates in a bull flag. Take it long on a break above $66. I see T1 as $72 and T2 = $80
Some nice supporting order flow into LVS yesterday.
$BABA – Alibaba
A nice double bottom set up with bullish divergence set up. I like it long against $225. Another perfectly valid approach would be to alarm $250 and wait for price to prove it can recapture all of the moving averages. THen I’d take it long above $250 for a run to $270 plus. THe measured move target if the double bottom set up plays out is $310
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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