Daily Profit Compass Oct 26

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Tickers discussed: SPY QQQ IWM  JOE LUV KEYS  FATMAAN

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.

Trader’s Couch

In your trading, learn to think in terms of probabilities.

Earnings 

This week marks the peak of earnings season.  Tons of important names are scheduled to report.  I will be watching for reaction to earnings not only on specific names but with sectors.  Lots of industrials report as well.   HON / GE / CAT / 3M / UPS,  some rails as well.

 

Companion Video

The companion video covers  the indexes, FATMAAN names along with other market moving names. Key Trading levels and trading plans along with timely commentary to keep you on the right side of the trade.

Find the Video HERE

Charts in the Spotlight

$JOE – St. Joe

This trade idea was presented over the weekend. If you missed it, here is a link to the blog post and video.   HERE

Trades about to happen

Over the weekend I presented 10 “Trades about to Happen”  If you missed it and want to add all the names to your watchlist, you can find the blog post and video HERE

Here are 2 of my favorite set ups from the group.

INDEX CHARTS

While SPY and QQQ remain largely trapped in volatile trading ranges, IWM has shown much more positive price action.  Interest rates are on the rise and just broke above a key resistance level. Rising rates, in general, are a head wind for tech and a tailwind for  cyclicals and banking.  That said, we’ve had several convincing “rotation to value” rallies over the summer months, they have been faded.  No way to know if it will be different this time but for now at least the money is flowing to cyclicals and value which are heavily represented in IWM.

SPY 2 hour

Price set to gap lower and open close to the bottom of the consolidation box near $342.  Closing 2 hour bars below $341.50 would be bearish as it would be back in the prior range. Traders can be long against $341.50 with a stop just below.  When trading SPY, watch the QQQ to see where price is in relation to $280 which is the top of its prior range.  You want to see confirmation from QQQ that price is below $280 before going hog wild shorting SPY.

SPY 30 min

Price set to open at the low end of the trading range. Getting long against $341.50 is objective with a stop below.  Your target is the top of the box $4 higher

QQQ 2 hour

Price set to open near $282. A move below $282 favors a move to test the top of the prior trading range at $280.  Moves below $280 would be bearish.  Nimble traders can get long against $280 w/ a stop below. THe target is $285.  A move above $287 turns the chart more bullish w/ price putting in a higher high.

QQQ 30min

Price set yo open near support at $282. Below 282 favors a move to $280.  Getting long against support is objective for nimble traders with stops just below. Moves below $280 and bearish outcomes expand.

IWM 2 hour

Price set to gap down and open near support in the 161 / 160 area. Price needs to hold $160 or a move to test the gap at 158.50. A move back above 164 would be significant because it would be a breakout above the prior highs and it would target $167.50

IWM 30 min

Use $160 as your bull / bear pivot.  You can be long against $160 w/ a stop below.  Below $160 and a test of the gap at 158.50.  A gap entry would favor a move to $156.50 for a full gap fill.

 

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