Tickers discussed: SPY QQQ IWM 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
The link between Spirituality and Trading
As his Holiness states the purpose of spirituality is to provide a framework for self-discipline. For we traders, maintaining self-discipline is fully 90% of what we battle each day. Therefore if we embrace spirituality and take to heart it’s teachings, we will be building the inner strength and fortitude necessary to be successful in our market interactions.
Earnings
News Flow
- US talks to chip makers about self sufficiency
- AMZN said to be circling AMC for a potential takeover bid. AMC shares up 17% in premarket trading
- $CCL says bookings are surging
- $UA and $MAR both miss on EPS
Soggy
The major averages are down about 1% across the board as I write this. A little soggy when you consider the price action last week which was bullish across most sectors. Keep an eye on any emerging rotation into defensive issues like XLU / XLP / Bonds etc. Last week fed fund futures were priced for negative rates next year despite Jay Powell’s proclamations to the contrary. Bond yields have been a leading indicator on the past few rug pulls. Keep them in focus here. Gold looks horrible after having had a good week. Showing down 1%.
Reminder: this is May Op-ex week. Option expiration week’s are usually bullish. We will see if that holds true.
I am about talked out on this market. The disconnect between main street and Wall Street can only be sliced and diced so many ways. Keep the focus on price and we’ll do just fine.
Sector Summary
All green with energy leading the way.
Wave 2 DATA
5/11 Charlie Evans speaks at 12.30
5/12 NFIB survey / CPI / Redbook / 4 FOMC speakers
5/13 PPI – FD, Oil inventories
5/14 Jobless Claims / 20 yr bond announcement
5/15 May Option Expiration / Empire State MFG Survey / Industrial Production / Retail Sales / Business inventories
Strategy and Tactics
Staying tactical. Not piling in at the top. Taking selected shots.
Positioning Update: LUV Jun 25P small; XLF May 22P Long GLD May 160 C. and GLD May 165C ; Rolled GDX May 35 C to Jun 35C ; long DHT Jun $8 calls;
FAAMG Update & Trading Guidance
These names are 22% of the market. Even if you don’t trade them, they collectively dictate in large part where the market goes.
- $FB – No changes; Stay long against 209.50
- $AAPL – Overhead gap almost closed. Stay long against the uptrend line. Look for a gap fill to $313, then All time highs
- $AMZN – No changes; Stay long if you entered near 2280; if no position, the next long entry is on a break above 2375 where there is some volume / price resistance. Target is 2450
- $MSFT –No changes; stay long against 180; target is prior high at 190
- $GOOGL – No changes; stay long against 1350; clear path to 1425. Price is stretched from 8ema. Dont be surprised with a hesitation or minor pull back for ema re-connect.
Index Chart Review
SPY 2 hr
SPY 30 min.
QQQ 2 hr
QQQ 30 min
IWM 2 hr
For some reason I lost all of my prior annotations, so here is a fresh look. Boiled down to its essence, bulls are fine above $125. Below it gets harder.
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
