Tickers discussed: SPY QQQ IWM FB AAPL AMZN GOOGL MSFT NFLX TSLA ARKF ARKG ARKK ARKW ARKQ PRNT TLT GDX GLD
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
The video is a detailed technical review of the indexes and FATMAAN names. Additionally time is spent on the ARK Invest family of funds that have been a focal point of the selling. 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
A Tale of Two Markets
Selling remains focused on the QQQ / ARK Invest bubble segment and the money is flowing to cyclicals and value. As long as this dynamic exists and the selling does not broaden, you should see IWM outperform and SPY at least hold its own. Asia is coming off a rough session and the NASDAQ is down as rates tick higher again. In the video i explain the the QQQ is in bear mode. ARK Invest remains in the crosshairs due to their hi-valuation names. The key i am looking for is to see if the selling remains a sector rotation event of if it morphs into a market wide correction.
- Vol persists, primarily in the QQQ’s
- Monday wiped out most of Friday’s afternoon rally, but now premarket we have a reversal of the reversal with premarket NQ is up 2% plus
- Watch out for the big gap below if the premarket gains are held to the opening bell.
- Yields tick lower and is helping market sentiment this morning. TLT reviewed this morning.
- Gold and Gold Miners are at support. Chart review and discussion this morning.
- Sell off still looks like sector rotation as money rotates toward cyclicals and value. As long as the QQQ sell off does not leak into the broader markets we can say it’s just sector rotation if the selling is contained. Expect IWM to outperform as long as this dynamic holds
Order Flow Insights
Oscillator Update
As you’d expect, the NASDAQ oscillator is oversold at neg 60 but not to the point where it could not go lower. Odds favor a day of relief to pop the oscillator a little higher. How high is the question. $NYMO for the NYSE is stronger and to a certain extent is being held back by QQQ selling.
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 Daily
SPY 2 hour
SPY 30 min
QQQ Daily
QQQ 2 Hour
QQQ 30 min
IWM Daily
IWM 2 hour
$IWM 30 Min
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