We started the week with a big drop on Monday followed by a massive reversal to new all-time highs. After the pop in the S&P 500 (ES), the market and other major indices have moved lower. Federal Reserve Chairman Jerome Powell had little positive updates in the FOMC meeting causing a negative reaction from the market and sending prices lower.
Our main indicators we are using as a gauge for trend are the daily Ichimoku Cloud and the 50-day simple moving average (SMA). As long as the ES stays above this daily cloud, prices will likely keep climbing. Similar to the daily cloud, the 50-day SMA has been a focal point for price direction. So far this year, we’ve seen that every time the ES hits the 50-day SMA, prices hold above it. If we hold the 50-day SMA, we could continue to rally. If we break it, we should watch for it to hit the cloud. We’re seeing the same situation in both the Dow Jones Industrial Average (YM) and the Nasdaq (NQ), which is why it’s so important to focus on these two guiding indicators.
Watch the video above for key levels to watch and a review of our focused watchlist including ROKU, GOOGL, and SHOP.
With the Federal Reserve (FOMC) meeting coming up on Wednesday, we’re keeping in mind that the market could rally or sell off into the event. Whether it be big news or non-eventful, it’s important to watch how the market reacts. The overall market mostly chopped around last week and finally started breaking out on Thursday and Friday into all-time highs.
All three major indices formed a v-shaped reversal on Monday after hitting new all-time highs. The S&P 500 (ES) started out Monday with a large bounce, indicating that we could move higher over the next week. As long as the ES stays above the all-time high (ATH) zone it should continue to move higher. The Dow Jones Industrial Average (YM) followed this v-shaped pattern and logged a new all-time high on Monday. The Nasdaq (NQ) had a large selloff down to last month’s Point Of Control (POC) at 14,918 and a reversion to the daily mean but attempted to move higher into an ATH. If technology continues to break into new highs, we should see the overall market move higher with it.
Here is our focused list:
GOOGL — Had a huge rejection last week but is printing a V-shaped reversal. If V-shaped reversal holds, look for a strong push to $2,800.
ROKU — Has been dropping and approaching a key level – the weekly top of the Ichimoku Cloud and the 200-day simple moving average (SMA). Could continue to drop to $327. Be patient and watch the 30-minute Ichimoku Cloud for indication of what might happen next.
AAPL — Broke out of daily wedge and also formed a V-shaped reversal. Passed its ATH at $150. If AAPL continues to break above $150, watch the squeeze fire and see how high it could go.
Hey traders, happy Sunday! As we approach this next week, we are looking for the daily squeezes in the indexes to continue to hold structure and fire to the upside. The S&P 500 (ES) looks rock solid and while things can get choppy due to seasonality in August, the bullish daily squeeze remains solid. The Dow Jones (YM) has a daily squeeze getting ready to fire long, and the Nasdaq (QQQ) is also setting up to fire higher.
Look for the QQQ’s to make one more solid push into the upside to the 2+ or 3+ average true ranges (ATR). We have a solid structure and bullish trend in technology, so if the daily squeeze fires long we could see a strong move to the upside. If technology pushes higher, AAPL has the potential to move into new all-time highs.
The financials (XLF) are looking extended at 2+ ATR, so be patient and wait for a dip. We took profits last Friday in GS in the Compounding Growth Mastery and will look for new opportunities in the financial sector, so keep financials on your radar.
We will also wait for a pullback in the industrials (XLI), seeing the daily squeeze hasn’t fired and are printing bullish 3-day and weekly squeezes. The same goes for the semiconductors (SMH), should we get the opportunity to buy the dip, as the weekly squeeze could give us a great opportunity to push us higher into September and October.
Keep an eye on the squeezes in technology, semiconductors, financials, and industrials to take us higher in the next few weeks (and even months). Watch the video for key levels to take advantage of, specifically in stocks with good looking setups like TSLA, PYPL, and SBUX. We hope you enjoyed your weekend, and we’ll see you on Monday!
Happy Friday, traders. We hope you all had a good week and got a little bit better at your craft over the last 5 days. The daily squeeze in the S&P 500 (ES) that we covered last Friday finally fired long this week, and with that being said, the markets continue to look solid here.
ES Daily Chart
Though it has yet to fire its daily squeeze, the Nasdaq (NQ) continues to maintain a bullish structure which we think could be good for one more solid push into new highs. With a solid looking daily squeeze in the Nasdaq QQQ’s, we also have our eyes on AAPL here. Apple has its own bullish daily squeeze with a series of lower time frame squeezes setting up under the surface (see chart below). With this structure, should the NQ push into new highs we believe Apple will follow suit. For this reason, we sold a put credit spread on AAPL earlier in the week that expires next Friday. The ball is in the QQQ’s court, of course, but if we get a nice move in technology next week we should be able to get our move into $150+ on AAPL.
AAPL Daily Chart
Another set up that we are big fans of right now is Tesla. A couple of weeks ago we sold a September monthly expiration put credit spread in the Compounding Growth Mastery as the stock was setting up in a daily squeeze, and thus far that trade is off to a great start (see chart below). However, the structure of the bullish weekly squeeze and 3-day squeeze leads us to believe that Tesla could be just getting started. At the moment, there are a handful of lower time frame squeezes setting up on top of the daily 8 Exponential Moving Average (8EMA), and if they begin to fire long they could trigger the next solid push into the upside. As long as the structure of the weekly squeeze here remains intact, we will wait for any dips as an opportunity to add more exposure here.
TSLA Daily Chart
This week, we closed trades in PTON, CRWD, and ZM for losses in the Compounding Growth Mastery as all three of their squeezes lost structure. However, we were able to keep these losses small and are still moving the ball forward with our winning positions. Our trades in XLI, TSLA, and TSCO are all off to a great start, and we were able to close our AVGO and IWM spreads for 70% and 50% of the max potential profit, respectively, this week.
Keep your losses small, let your winners work, and keep looking for the next good setup! That is the key to consistent trading. As always, in Sunday’s newsletter video we will be covering a handful of setups that we think could lead to our next round of profitable trades. So keep your eye on your inbox for that video this weekend and be sure to spend some time recharging over the next few days.
One of my favorite and the most powerful indicators I’ve used since the start of my trading career is Point Of Control (POC). The Point Of Control is a reference price point that stems from the VolumeProfile indicator found on most trading platforms. I use the central point of VolumeProfile – known as the Point Of Control – because it reflects where the MOST amount of volume has occurred over a certain period of time.
The Point Of Control has changed my trading game because knowing where this level is and studying its behavior unlocks a massive trading edge, since this price point becomes the stock’s most liquid level (and all stocks do is travel back and forth to liquidity). POC works on everything from futures, indices, and individual stocks.
In this video, I’ll introduce and breakdown the Point Of Control and include how to set it up on your trading platform so that you can add it to your trading game.
This week there are a few major catalysts that could impact the market. We’re heading toward the end of earnings season with most of the big names having already reported, but there are opportunities for setups this week in names like Nvidia (NVDA), Coinbase (COIN), Disney (DIS), and more. Pay close attention to the economic data this week, specifically the Core Consumer Price Index (CPI) on Wednesday morning, to see how the news impacts the overall market.
Last week, the S&P 500 (ES) traded in a 4-hour squeeze and finally broke all-time highs. Not much has changed since last week, but the ES is getting closer to the next step — a big move higher. The ES has been strong but not extended, so let’s see if the ES can squeeze and break last week’s all-time high at $4,433.25 and send the market higher.
For the Dow Jones Industrial Average (YM), it is continuing to squeeze sideways. Watch for rotation into the YM (semiconductor sector)… Or will technology act as the market leader?
The Nasdaq (NQ) held onto its gains on Monday as the NQ approached its all-time high but pulled back and closed short of last week’s new all-time high at $15,172.50.
Here is our focused list:
GOOGL — Starting to ramp up with higher lows and showing strength. On Monday GOOGL closed above the big breakout level at $2,733. Squeeze hasn’t fired but momentum is building. If technology continues to lead, look for GOOGL to break the $2,746 level to its all-time high at $2,775 (and maybe even $2,800).
ZM — Uptrend forming on its 2-hour chart. Watch for ZM to move higher into the $406 to $416 breakout zone. Look to enter around the key zone from $375 to $380. Watch for the squeeze to fire and price to hit the first target at $391 and up to $406.
TSLA — Note the beautiful weekly squeeze, watch momentum shift, and pay attention to the 4-hour squeeze as it fires. If it breaks and clears $726, look for price to move to the $750 to $760 zone and even a push into $780. Be patient because if TSLA breaks there will be plenty of opportunities to take this higher.
SNOW — Breaking out of a tight wedge. Look for SNOW to move back above the key level at $280 or $282 and then a push up to $286. Be careful because this name can be tough to trade but can offer a great setup as long as risk is maintained.
NVAX — Ran hard last week along with amazing earnings from BioNTech (BNTX). NVAX filled half of the gap between $216 to $227 and has 13 points left to fill the gap up to $227. Focus on the sector move as a whole.
We saw multiple squeezes form last week as the major indices maintained their solid structure. The big mover last week was the financial sector (XLF) as it built up energy the last few months and finally made a big move into the +2 average true range (ATR) on both the daily and weekly charts. We took advantage of the hourly, daily, and weekly squeezes in Goldman Sachs (GS) in the Compounding Growth Mastery and bought back our put credit spread for 45% of max profit. There is potential for continuation higher, but we will be waiting for a pullback before making our next move.
The Industrial sector (XLI) is also printing a mix of squeezes on the daily, 3-day, and weekly charts. As long as we hold this structure into September and October we could see prices move higher.
Semiconductors (SMH) have a beautiful daily, 3-day, and weekly squeeze firing long. Wait for a move to the +2 average true range (ATR) and buy the dip before adding more exposure.
Technology (NQ) has a bullish daily squeeze with a positive histogram and brand new 4-hour squeeze. Look for the squeeze to ultimately fire long and push technology stocks higher.
Watch the video above for a full update on our current open positions and where to buy the dips and add to your positions. Industrials, financials, technology, and semiconductors are all good-looking pockets in the market. As long as the daily squeezes in the indexes hold structure, look for them to fire to the upside.
This was a relatively uneventful week in the markets as the S&P 500 (ES) and Nasdaq (NQ) generally traded sideways. While this choppiness could feel somewhat boring, the daily squeezes in the indexes still have a bullish structure to them. As long as both indices hold this structure, we will continue to be patient and look for long opportunities in this market. The trend is your friend… until the trend changes.
ES Daily Chart
As for the market sectors where we are currently focusing, the semiconductors rose nicely this week but we think there is plenty of room to the upside. We are still long Broadcom (AVGO) and we nailed a trade on Nvidia (NVDA) for a quick profit this week. If we get any dip in the semiconductor group next week we will likely look to add more exposure in the chipmakers.
SMH Weekly Chart
As for technology, should the group make another move to the upside we think Apple (AAPL) is poised to pop based on its bullish daily squeeze (chart below). Google (GOOGL), despite having no daily squeeze, offers a handful of bullish squeezes on the lower time frames that we will be watching closely.
AAPL Weekly Chart
GOOGL Hourly Chart
After weeks of consolidation the financial sector finally woke up this afternoon. The weekly squeeze looks incredibly bullish and could offer the potential for weeks of solid momentum. However, after today’s big move we suggest waiting for the next pull back before diving in. In the Compounding Growth Mastery we sold a put credit spread on Goldman Sachs (GS) yesterday afternoon and bought it back today for a nice profit as it quickly ran into our target. We will happily look for another entry on the next dip.
GS Daily Chart
The structure of the indexes continues to be solid. These are some pockets of the market that could offer great opportunities if the bullish nature of the market continues. There are a few additional stocks on our watchlist where we are looking to buy the dip and we will be covering those in detail in this Sunday’s watchlist video. Enjoy some relaxation this weekend because it’s back to the grind on Monday! We’ll talk to you on Sunday!
The main focus this week is on jobs. We had a slightly bearish ADP Employment report on Wednesday and now we’re waiting to see what Friday brings with the Nonfarm Payrolls report. This jobs report could be the catalyst that the market has been waiting for…
The S&P 500 (ES) has not dropped lower or rallied higher, but it instead has been sitting in a 4-hour squeeze above the 4-hour Ichimoku Cloud. The market has the capability to break higher as momentum continues to build, but it needs a reason to pop. Could the jobs report cause the market to jump higher? Unless the ES breaks below $4,364, prices will likely continue to chop until the next rally higher. Be careful to not short this market and rather wait to see if we head higher.
Today, we finally saw all three major indices join the rally party, settling up around the same percentage points (slightly over 0.5%). The Nasdaq (NQ) logged an all-time closing high and the Dow Jones (YM) finished the day in the green. The technology sector is still leading the market higher. As long as the NQ holds $15,134 and trades back through today’s all-time high at $15,166, there is plenty of momentum to explode higher and boost the market.
Watch the video above for our Focused List of setups that could continue to squeeze and fire higher. Be patient heading into Friday’s jobs report, manage your risk properly, and we’ll see if jobs can push the market higher.
Let’s see what this fresh month of August brings after the market sold off last week to end July.
This week the focus is all about jobs. Keep a close eye on the ADP Employment report on Wednesday and the Non-Farm Payrolls report on Friday. Watch how the market acts leading into these two reports and how the market reacts if we receive two bullish reports.
Will the jobs report be a catalyst to the upside, downside, or is it simply just noise?
This week also leads us into earnings for our last few big names. The main focus on earnings is on individual stocks, specifically Alibaba set for Tuesday morning and Roku on Wednesday afternoon.
We are still using the same compass as last week and waiting to see what happens next as the overall market is still inside this 4-hour squeeze. Watch the video above for a full market breakdown on the three major indices, volatility, and a deeper analysis of our current focused list (check below).
Here is our focused list:
NVDA – After the stock split, NVDA is retesting and holding its wedge at the 196 level. The 4-hour squeeze hasn’t fired yet, so let’s see if it can continue to hold. If it breaks through 200, look for 204 or 206.
GOOGL – Closed bullish near all-time highs despite technology’s red day on Monday. Watch the 2-hour Ichimoku Cloud. Key levels to keep an eye on: 2,770 calls for this week’s expiration and 2,750. Be patient and see what technology stocks do.
ROKU – After hitting an all-time high, there’s been some serious selling. See if earnings this week could push this to 500. Look for opportunities with lotto trades toward the 500 strike next week. Be patient and proceed with caution among earnings.
SQ – With the acquisition of Afterpay, Square ripped higher to all-time highs with huge amounts of volume. Weekly squeeze wants to fire, meaning it could break an all-time high. Went from 230 premarket to 283 on Monday, could move down or be so strong that it explodes higher to the 300 level.
TSLA – Starting to fire a daily squeeze and into a weekly squeeze to hit a target of 750. If it continues to hold the 709 to 700 zone and breaks 727, we could see the push toward 750.
