Morning Market Briefing – New Highs on Days That End in ‘Y’

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Morning Market Briefing – New Highs on Days That End in ‘Y’

Morning Market Briefing

Morning Market Briefing – New Highs on Days That End in ‘Y’

July 26, 2021

Good Morning! Monday’s price action was more muted that last week’s, but we still hit new highs in both the SPY and QQQs. Travel stocks continue to boom off their short term bottoms as summer travel accelerates. Big tech is on many a trader’s radars as well with names like AMZN, AMD, AAPL, TSLA, and others having strong sessions over the past week. Bitcoin surged on Monday, putting in one of the strongest sessions in the last few months. Like any chart, however, we’ll need to see follow through and confirmation of the move over the following days. Don’t forget to check out our president Sarah live trading at 1:00pm EST today. See the events page to sign up!

Smaller volume in the SPY but still new highs.

Big tech names continue to carry QQQ to new highs.

YouCanTrade Coach Matt’s Play Of The Day

UAL has benefited from a recent surge in travel stocks and is well off its lows from 7/19.
During Monday’s session we breached the 200 SMA and 8 EMA. WIth a break of the 21 EMA, and continued strength in the travel names, I will look to buy a call in UAL, likely the $49 strike in the August monthlies. Would look for an exit when the underlying is around $52, and stop out if the 200 SMA fails to hold. As always with a long option, our max risk is what we pay for the position.

YouCanTrade Coach Shaun’s Play Of The Day

Market has been in a tight range today  I will be looking to initiate a bullish position on INTC , It has been in  very tight consolidation for the past two months with support around 53.00 and resistance around 58. Stochastics on the daily as well as the MACD are suggesting possible upside potential.

I will be looking to set up a broken wing butterfly  credit spread  with my bias to the upside. I am going to place a 54/50 put credit spread and sell a 54/55 call spread if the pricing is around the $54.00  to  $55.00 area on Tuesday open

I should be able to get around $1.70 credit for an entry . This will be a no risk trade to the upside and give me downward protection to $52.30. I will look to take this trade off for around  $1.05 debit

To recap I make profit if stock stays above $52.30 and max profit will be if the stock closes around our short strikes.

We will be using $400 in margin but bringing in around $170 on entering the trade . So we are potentially risking $230 to make $170.

YouCanTrade Coach Shan’s Play Of The Day

$EOG (EOG Resources LTP 74.19) provides a good medium term setup in terms of RSI and Stochastics, with both of them rising from the oversold region. With price rising towards 50 EMA there is no immediate resistance in the upside. From the current level of $74 there is potential to achieve the previous highs of $86 or beyond in the coming days. Strong volume were noticed on Tuesday and Wednesday ahead of the earnings on Aug-4. Fundamentally the stock is well poised to benefit from its strategy to minimize cost as well as focusing on strong cash flow.

On downside, the next support level is away at $65.67. Significantly low oil prices or lower than expected earnings report could play a spoilt sport in the short term.

Watch List

Symbol Why We’re Watching
WFC Could in $42-$46 range.
AAL Recent strength could carry action above the 50 SMA.
AAPL Completed the recent ‘V’ pattern. $150 on deck?
TAP Watch for base & bounce off the 200 SMA and push up above 8 EMA.
INTC Long term watch, caught in $54-$58 range.

YouCanTrade Scanner Ideas

Symbol Idea Direction
AMD Long
INTC Short
LOW Long
UBER Short

For more information on the YouCanTrade scanner, click here. 

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