Morning Market Briefing – Friday Fun

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Morning Market Briefing – Friday Fun

Morning Market Briefing

Morning Market Briefing – Friday Fun

July 23, 2021

Good Morning! Markets continued their not-so-slow but steady march back toward highs on Thursday, setting up a key session to close out the week. It took but three trading days to not only wipe out the gap down on Monday, but last friday’s push down as well. So what’s left? Just (yawn) another run at all time highs. Equities could, however, decide they’re not ready for that yet and have a small sell off or rest day into the weekend. Big tech led the way yesterday, and the travel stocks gave up some of their rare gains from the last couple of days. Plenty to watch for today!

SPY on deck to break highs.

365.49 highs on deck in the QQQs.

YouCanTrade Coach Shan’s Play Of The Day

There’s a nice EMA Crossover setup for $CRM (Salesforce.com Inc LTP 248.28) with 5 Day EMA crossing over both 20 Day and 50 Day EMA creating a bullish pattern in last 3 days. If tomorrow the price crosses over 250 breaking the immediate resistance line created by previous highs, then it has a strong upside ahead till the next resistance at 268. The earnings are still a month away and this bullish momentum backed up by rising Stochastics from oversold region and upward RSI could potentially continue for another few days. Fundamentally Salesforce is a great company with no immediate rivals in their core CRM product line and happy customers all around.

 

On the downside, the immediate resistance line at 250 could create a temporary pullback with reduction in volumes in next couple of days. The next support line is at 240  below the 50 days EMA and that could delay the recovery from the recent lows.  

YouCanTrade Coach Matt’s Play Of The Day

ROKU has been showing good upward action since the recent pullback and has come into an area of resistance on a downward sloping line drawn from the highs on 6/30 to the high of the price action on 7/12. I’d need to give it some room to go above the line to reduce the chance of a failed break, so the line in the sand for me is $425. On a move above $425 I would consider a $425/$430 call debit spread in the August monthlies. I’d look to take profit on a break of $440 and stop out if we retrace under the resistance line. As always, my max loss would be what I pay for the spread.

YouCanTrade Coach Shaun’s Play Of The Day

Market has rebounded nicely after the big drop on Monday  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 54.00 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 and place a 56/52 put credit spread and sell a 56/57 call spread if the pricing is around the $56.00 area on Thursday open. I should be able to get around $1.95 credit for an entry . This will be a no risk trade to the upside and give us downward protection to $54.05. I will look to take this trade off for around  $1.05.

Watch List

Symbol Why We’re Watching
NFLX Earnings disappointment, possible fundamental play to the upside.
UBER Watch for push into and run to top of the previously established $48-$52 range.
MA Could pop to highs on hold of 8 EMA.
DISH Watch for break and hold of 50 SMA and $42.50 resistance
INTC Long term watch, caught in $54-$58 range.

YouCanTrade Scanner Ideas

Symbol Idea Direction
AXP Long
CAT Short
CSCO Long
BMY Long
LYFT Short

For more information on the YouCanTrade scanner, click here. 

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2021-07-22T18:40:21-04:00
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