Daily Profit Compass Oct 20

Tickers discussed: SPY QQQ IWM  REGI  DKNG

The Daily Profit Compass provides stock market technical analysis for the indexes and other market moving names. 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 

All eyes on NFLX after the bell tonight.   TSLA/CMG / LRCX Wed AH; Airlines / Homebulders and INTC Thursday.  AXP Friday

 

Companion Video

The 20 min companion video covers the indexes and FATMAAN names. Key Trading levels and trading plans  along with timely commentary tokeep you on the right side of the trade.

Find the Video HERE

Market Snapshots

Trade Tracker Update

Long Idea – $REGI

I have been on the outside looking in on the hot alternative energy trade that just keeps going. Most of the names are in lockout mode, meaning you either bite the bullet and chase it or you sit out. REGI is the exception. Very nice controlled uptrend with a pull back to the channel low. I see 3 things that IMO make it a nice long idea.  Channel low.  Sitting on the 20 ema as support.  And 50% fib pull back.  I like it long against $54 or $53 if you want to give it more room.  I could not find a better set up in the alternative energy space.

FATMAAN / FAAMG Chart Reviews.

I did a complete review of these names in the Market on Close report last night.  If interested, You can find the video HERE

INDEX CHARTS

SPY 4 hour

Lots going on in this 4 hour view. RSI trend violation and a bear cross on the PPO favor lower prices. Although not perfect, price possibly could have put in a double top. Price did not quite reach the top but it has that look and feel. The pull back perfectly tagged the 38% fib retracement level that coincided with Support at $341.50. Stay open to the possibility that this is the end of the correction but I still favor a scenario that leads to lower prices. Any break of 341.50 confirms more downside outcomes. As noted on the chart, $332.50 aligns the 61.8% fib and a large volume / price support level. It would take some serious selling pressure to crack that level.

SPY 30 min

On this time frame, 344.50 and 346 look like the first areas of overhead resistance. Path of least resistance looks to be lower until / unless bulls can recapture 349.50 / 350 level.

QQQ 4 hour

With a perfect 38% fib retracement complete, traders should remain open to the possibility that the corrective activity is over and that a bounce is possible. A break below 282.50 would open up more downside toward 279 and 274.50 with $270 emerging as a key level where a large volume / price support layer is present.

QQQ 30min

Price at the bottom of a well-entrenched down channel. Bounces to 287 and certainly 289 offer objective places to fade the move. It would take a move above 289 for the bulls to gain durable traction. As it stands, lower highs and lower lows are in place. Price moves below $282 open up more downside.  As with all things QQQ, the FATMAAN names ( FB / AAPL / TSLA / MSFT / AMZN / GOOGL / NFLX ) dictate price moves due to cap weighting. Watch them for clues on trading the Q’s.  NFLX earnings after the bell.

IWM 2 hour

Because of the recent outperformance, price remains relatively far away from the 38% fib retracement level that SPy & QQQ have already hit.  On this time frame, 162 is resistance and $160 is support. A backtest of $162 offers an objective short entry w/ a stop just above and a target of $160. Any break below $160 would favor a move to the open gap.  On the bullish side, a break above $162 can be bought with a target of $164

IWM 30 min

A lot less congestion on this chart compared to QQQ and SPY. On this short time frame, it boils down to focusing on $162 and $160.  I think you can try a fade of a bounce into 162-162.50 with a target back at $160. Much above that level would favor a move to $164. A move below $160 favors a run at the open gap with the possibility of a gap fill to 156.75

 

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