Morning Market Briefing – Heavy Lifting

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Morning Market Briefing – Heavy Lifting

Morning Market Briefing

Morning Market Briefing – Heavy Lifting

August 31, 2021

Good Morning!

They say the markets don’t crash up. The QQQ is trying to test this axiom. After a mid August trickle down to $360, the EFT has pushed up to $360 in just 8 sessions, with the bulk of the work being down in just five candles. The SPY also made a new all-time high. Some of the market internals, however, show a bit of a yellow light. $ADD and TICKS both ended the day negative, and the VIX, while red, didn’t break below $16. So what caused this move? Well, mostly APPL, AMZN, & FB (with a few other big tech names). These tech giants carried the markets on their backs, with AAPL having a 1+ ATR move to the upside to find new all time highs. We’ll watch these names for follow through today, and see if the IWM can break its upper $230 range.

SPY needs to hold $450 for next leg up.

QQQs being ridden to new highs by biggest names.

YouCanTrade Coach Shaun’s Play Of The Day

Well big tech was sure the winner today ! Today I’m looking at MMM (3 M CO ). This range bound stock has been stagnating between $190 and the $205 level now for over 2 months. Stochastics and MACD are in the oversold area and thus I am going to look at initiating a  bullish butterfly trade. if the stock is around the $195 area tomorrow I will be buying the $190 call STO ( 2) $200 calls and BTO $ 205 all expiring Oct 1. The cost will be around $4.60 debit which is my max risk if stock closes below $190.00. My max profit is if stock expires at $200 in which case my $190 option would be worth $10.00 per share and would be approximately $540 profit on the trade.

YouCanTrade Coach Shan’s Play Of The Day

$PYPL (PayPal Holdings Inc.) jumped by more than 4% on Monday at the time of noting down this observation. Recently the company launched their BNPL product and it was well received in the market globally. It fits well in the PayPal wallet because no further checks from the Banks are required. The stock jumped 4.0% considering no other factors were visible today. In terms of the Indicators, the RSI, Stochastics and MACD are all lined up and could take the stock price to $310.

However, it is possible that a short term correction is on the cards and the stock could go down to the level of $270 quickly in a matter of days.

Watch List

Symbol Why We’re Watching
TWTR Possible quick run to $67+ on break of $65.
BBBY Former high flyer needs break of $30 to pop.
PNC Major $195 resistance area on deck.
LOW Possible quick move to $215 above $210.
TSLA Needs to confirm above $730 for run to $750.

YouCanTrade Scanner Ideas

Symbol Idea Direction
CAT Short
PYPL Long
SHAK Short
MU Short
FB Long

For more information on the YouCanTrade scanner, click here. 

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2021-08-31T08:55:53-04:00
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