Morning Market Briefing
Morning Market Briefing – Calm After The Storm
September 21, 2021
Good Morning!
Monday’s price action was as bearish as we’ve seen in many months. Until suddenly it wasn’t. In the last 45 min of the regular session, the /ES crawled back nearly 40 points off it’s lunchtime lows. Combine that with overnight action and we’ve already made up more than half of the move down after the 4,435 break on Friday. Is the “buy the dip” crowd firmly in control, or are the bears luring them to sleep and looking to pull the rug during today’s session. Stay Tuned! If the ‘dip’ is already over, long biased swings will be looking in the blue chip names for some discount if we look like new all-time highs are on the menu this month. Keep in mind we’re got FOMC this week, so traders may wait for that to make their move.
/ES has mental resistance level of 4,400 on deck.
/NQ between support and resistance here. Needs to retest one or the other this week.
YouCanTrade Coach Shan’s Play Of The Day
Amidst the overall market turmoil led by the Evergrande crisis I’m looking forward to some of the stocks which ideally are not related to this crisis at all. Moreover, they have been beaten lately in the market even though they have a solid business model, continuous cash flow and have been growing in the Covid-19 situation. One of such stocks $FDX (Fedex Corp LTP $250.80) is going to announce its quarterly results on Tuesday. There are many positives expected from the announcement. In the May quarter they announced a revenue growth of more than 30% YoY with strong growth in earnings. The company recently announced that it is going to increase its shipping rates from January 2022. With strong parcel demands all across the globe, there is immense potential going forward. I’m looking for a possible reversal for the stock to breach $300 in the near term.
On the other hand, we know there are significant challenges posed by the Delta variant in the shipping and logistics industry and a number of ports and airlines are closed during the pandemic. The costs must have risen due to additional health compliances. So, any bad news could be further dampening for the stock once again.
YouCanTrade Coach Shaun’s Play Of The Day
Well the market certainly needs some Pepto Bismol after yesterday’s selloff. A few upset tummies I am sure. With this large move on the VIX I am looking to sell call spreads anticipating a pull back as traders get back into the market at some point. If the VIX is still above 24 I will look to STO 38 BTO 42 VXX call spread expiring Oct 15 for around a .50 cent credit. Max risk is the difference of the strikes less premium received.
Watch List
| Symbol | Why We’re Watching |
|---|---|
| AAPL | Discounted buy on a blue chip stock if markets bounce. |
| AMD | Needs to reclaim 50 SMA for pop to $110. |
| ORCL | $85 potential support for move back up. |
| DKS | Needs to reclaim 8 EMA for move back to highs. |
| AAL | Possible breakout on push above $20.75. |
YouCanTrade Scanner Ideas
| Symbol | Idea Direction |
|---|---|
| BABA | Short |
| LOW | Long |
| TSLA | Long |
| LULU | Long |
| BBBY | Short |
For more information on the YouCanTrade scanner, click here.
Upcoming Event
Trade Sizing and How it Affects Profitability and Losses
September 21, 2021
Presented by Gouthum Karadi, YouCanTrade Crypto Coach
Each trader has a different amount of risk and reward that they can tolerate. In this webinar, YouCanTrade Crypto Coach Gouthum Karadi will walk you through methods that may potentially reduce risk and matching trade size to a goal using different cryptocurrencies.
You will learn:
• How to measure a form of risk and reward ratio using technical analysis of cryptocurrencies
• How some traders choose their different risk tolerances
• How to size a trade based upon specific risk tolerances
