$ES / $SPY
Decent sized pullback last week, but still nothing I’m worried about in the least bit. Main area I am looking for support is the 4075-4083 monthly/quarterly pivots.
You can see how well those area line up with the weekly 20sma as well. It’s nice to see that level just below adding a bit of extra support. If those levels were to be lost, we still have that key 4000 level. Again, I’m not worried yet in the least big about this pullback.
$NQ / $QQQ
Can see how the pullback in the Nasdaq was much smaller. Funny how that changes so quick. Was just a few weeks ago when everyone was panicking that the tech sector was lagging the S&P but soooo much.
We still have plenty of support just below these levels and I actually would love to see some flushes down to the 20d/50d to see if we get some nice opps for scooping some of my favorite tech names.
The sideways chop continues. Thoughts from last week are the exact same way I feel this week. The best/healthiest look for this thing is for it to base here for a few more weeks AT LEAST, if not for a few months. Will that happen? Who knows? Not my job. All I do is prepare myself for the different scenarios. Again, I don’t trade cryptos, but I still use this to know how I may trade any crypto-related equities.
MarketSmith Industry Rankings
TOP 30 GROUPS
BOTTOM 30 GROUPS
STRONG STOCKS LOOKING FOR CONTINUATION
Looking for this name to flush down to the 20d for a possible scoop to join the long. If it wants to stay heavy after testing that level, I have no problem stopping out and looking for a re-entry at the 50d/monthly pivot around 230.
Already have the swing on this name, but am looking to add to it now that we have broken above that 278 area. The way I prefer to add to swings is to pretend I’m not in the trade and ask myself, “where would I take this trade now?” The answer to that question is “on a flush to the 272.68 monthly pivot.” I would also be willing to add again at the 20d/50d area. But if I wasn’t in and I started a long at 272.68, I wouldn’t ride it all the way down to the next level without stopping out. Hope that makes sense.
I don’t even necessarily consider this a “strong stock” just yet, but I don’t want it to fall off radar. If this breaks over 26.39, I want to be looking for areas to get long on dips. This may take a week or 2 to even develop, so will just be monitoring until we get a trigger.
OVERSOLD REVERSION SETUPS
Big selloff here on the news that the justice dept is trying to block AONs acquisition of the company. Think the move is overdone and is approaching some technical levels where it may offer a nice bounce. The daily 200 and the weekly 50 are lining up real nice in that 219-220 area. Will be monitoring closely.
WEAK STOCKS LOOKING FOR CONTINUATION
This Harley Davidson idea was shared weeks ago and it is finally starting to develop. Showing the weekly chart here first just so you can see the bigger picture. We just had the short trigger on the weekly timeframe last week and now I am looking for pops back into resistance to get short.
The daily chart shows the areas of interest. For me personally, want to see a retest of the underside of the 20d/50d. No rush here for an entry. Will be patient and wait for my levels.
OVERBOUGHT REVERSION SETUPS
Same name here as last week. And as you can see, that 50 spot we mentioned last week actually worked as a nice spot for an intraday short. Now that we have continued higher and the stock is starting to get even more extreme, I like it even more. Will be hoping for a hard shove into that 60 level as the first area of interest.
Here is this week’s lineup
Would look to fade a hard spike into the mid 31s or buy any hard flushes down into the 25 area. Will still depend on where the stock is currently trading when we head into the earnings release.
Big fan of this chart. Think we are currently playing around with some really nice levels of support. If they beat and it gaps up, I will definitely be looking to scoop dips and join trend. I think even if they miss and we gap down, I still may be looking to get long, especially if the gap down puts us right in that 275 pocket.
Weekly shows that 275 level even better.
Daily chart starting to look pretty soft here. Looks like they need a big surprise to save the stock. If they miss, my guess is we get a pretty decent gap down on the name. Would be interested in scooping that 118 level. If they gap it up into that 20d/50d/200d trifecta, I would be willing to fade the spike.
That’s it for the list. Hope all you fathers out there had an amazing weekend with your children. Really helps to put things in perspective in regards to what is actually important in life. Remember, the markets aren’t your life. They are merely a means to an end. Cheers.