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
SPY 30 min
QQQ Daily
QQQ 2 Hour
QQQ 30 min
IWM Daily
IWM 2 hour
$IWM 30 Min
Get inspired, empowered and prepared.
Join us!
As the host of Trader’s Profit Compass, I work hard to inspire, empower, and prepare aspiring traders to face the markets with fortitude, quiet confidence and inner calm. It’s a protein-rich, sugar free environment without ego or judgement. While I can’t promise that joining our group will change your life, I’d like to think it will help your trading. Give it a spin! Nothing to lose and potentially much to gain.
Our group of aspiring traders are into active swing trading using technical analysis to find objective, high-probability, low-risk trades. Using these processes we’ve been fortunate to be winning; not perfect but winning. If that is appealing to you, join us! I’d like to think you’d benefit from the work. You’ll get premium content 6 times a week including a copy of my Daily Profit Compass, Weekend Profit Navigator, along with other actionable content delivered directly to your mailbox. You’ll even get an invite to our new trading room on SLACK.
Registration is simple and FREE Visit our homepage HERE