Morning Market Briefing – 50 SMA Shuffle

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Morning Market Briefing – 50 SMA Shuffle

Morning Market Briefing

Morning Market Briefing – 50 SMA Shuffle

August 20, 2021

Good Morning!

Over the past four sessions, trader’s have apparently been eating well. Because the after lunch portion of each of those days has been fun. We’ve seen intraday reversals that completely wipe out a morning flush, or yesterday, a push to the top of the daily range before a quick sell off into the close. Worth noting the volume has been much higher during these sessions, which means the ‘big money’ is still feeling out where it want to take the markets. The 50 day SMA is now in play for both the SPY and QQQs, and neither has spent much time below that level lately, so it will be a key area for the bulls to take back control.

50 SMA on deck for the SPY.

QQQs approaching key level of $360 / 50 SMA.

YouCanTrade Coach Shaun’s Play Of The Day

Mixed bag of the QQQs and ES up and the DIA and IWM down.I am  cautiously looking at Roku over the next day or  two. It appears extended on my stochastics and the MACD  so i will be looking to do a credit put spread expiring Sept 17 if the stock is $45 or higher tomorrow around 10. I want to wait thru the market craziness of open to decide if the market is poised to rally again. The $290/285 put spread will be worth approx. 50- .60 cents in credit.

The max loss is the $5 wide spread less premium received. Max gain is the premium received it both strikes expire worthless .

YouCanTrade Coach Shan’s Play Of The Day

$ROST (Ross Stores Inc. LTP $126.58) is the off-price apparel and home fashion chain in the United States. They reported earnings growth of 21% even in comparison to 2019 for the 2nd quarter on Thursday. The stock jumped more than 2% to close the day and there is more potential for it to reach previous high of $134 or more, based on breaking through the 50EMA and 20EMA.

On the flip side, the trading volumes were not absolutely great even after those good earnings numbers and the traders might discount some Q3 forecasting numbers to Delta variant. That would lead the stock to drop up to $114 in the short run.

Watch List

Symbol Why We’re Watching
IWM Long term range being tested to the downside at $210.
ALK Selloff could accelerate below $53
AMZN Big support level of $3,200 being tested.
AMD $100 on deck after break of $105.
FL Testing 200 SMA.

YouCanTrade Scanner Ideas

Symbol Idea Direction
VZ Short
WDC Short
IBM Short
INTC Short
JWN Short

For more information on the YouCanTrade scanner, click here. 

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2021-08-20T08:04:37-04:00
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