The market is currently vulnerable with high volatility and big levels. Conditions recently switched from the bullish trend we’ve seen all year to a downtrend below the daily Ichimoku Cloud for the first time this year.
Rather than buying the dip, we’re seeing a steady pattern of a “short the pops” market.
We have a few events on the economic calendar this week, the biggest being the FOMC meeting minutes on Wednesday, October 13, at 2 p.m. Eastern. Retail sales are released at 8:30 a.m. Eastern on Friday, October 15. With the recent focus on inflation, it’s important to note how these events can affect the market.
Here is our focused list:
GOOGL — One of the strongest tech stocks this year. If the market drops, expect GOOGL to drop to point of control at $2,731. Looking for a gap fill from $2,755 to $2,771. If GOOGL fills the gap, we’ll look to buy the dip at the gap at $2,755.
ROKU — Currently in a 2-hour squeeze. Point of control moved from $305 to $325. If ROKU drops below $319, look for ROKU to fall to $314 and potentially to $305. If it holds $319, look for ROKU to break from $330 up to $340.
MRNA — After a strong uptrend, MRNA dropped below the daily Ichimoku Cloud and is setting up a squeeze. Point of control dropped from $325 to $310. If MRNA moves to the upside, look for a move toward $330 to $340. If it trades below $310 and approaches $293, we could see MRNA drop to $283 and potentially $271.
Stay Focused!