Tickers discussed: SPY QQQ IWM FB AAPL AMZN GOOGL MSFT NFLX TSLA
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 covers a detailed technical review of the indexes and FAAMG names, plus a discussion on potential hedging strategies in case the market corrects. Run the video at 1.25x to reduce run time.
Find the Video HERE
Market Snapshots
$USD and Positioning
The USD is sitting on a key ledge of support. The second panel shows the extreme short positioning is ripe for a short squeeze but we have not seen that yet. I tried a long $USD trade a couple of weeks a go planning on the same thing, but it did not work.
Bitcoin’s Moonshot
Not much left to do except tag the 2017 high as the chart takes on that parabolic look as trader’s pile it.
Recent Swing Trade Ideas
If you’ve got some time, do a quick review of the Swing Trade Ideas presented 3 weeks ago on Oct 25. No spoiler alerts here. If you review the ideas, you’ll be able to make some of your own conclusions. I hope you’ve been in a few of them.
Find the Blog Post HERE
Think about potential hedges
I trust this market only about as far as i can throw it, which isn’t far. We have the reality of mushrooming covid cases and shutdowns vs the hope of vaccines in the Spring. They could decide to pull 5% out of this market at any time for any reason. I’ve been scaling in long cyclical exposure in recent days. Know locations on the index charts where you’d grab some PUTs to either hedge out losses on your long book or if you’d go bigger to possibly make it an alpha generating event. Lay out the plan now. When / if we see a giant red bar, it will do its best to knock us off center and lose composure. If you have a plan already in place, you can simply follow the script and not have to create one on the fly.
Tesla follow up
$TSLA 60 min
I was surprised they faded the pop so hard. Kudos if you recognized it from the open and took the trade. THe second entry would have been on the break below $450 which has been a well-defined pivot for many weeks. So now, we revert to trading off the well-defined levels that we’ve been using all along and that have served traders well. T2 = $466 T1 = $450 Pivot $420 S1 = 420 S2 = 410. Price needs to hold $430 for price to remain on the “right side of the chart”. Below $430 opens door to $420 and potentially lower to $408 full gap fill.
INDEX CHARTS
SPY 2 hour
SPY 30 min
QQQ 2 hour
QQQ 30 min
IWM 2 hr
IWM 30 min
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