Morning Market Briefing – Manic Monday

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Morning Market Briefing – Manic Monday

Morning Market Briefing

Morning Market Briefing – Manic Monday

August 30, 2021

Good Morning!

Friday’s market action put to rest any predictions, or hopes, or a rounded top forming in the SPY. Despite Fed talk of rate hikes as early as this year, new all-time highs were put in yet again. The travel industry, and the airlines more specifically, could be in play if the bull run continues. Names like AAL, ALK, LUV, DAL, etc are all on deck to challenge their 50 Day SMAs, would could officially, and technically, break them out of a bull trend. Caution is still needed in those names, as they’ll be very news driven for the rest of 2021. News of Europe discussing reinstituting travel bans from the US didn’t affect the names last week, but an actual ban certainly would.

SPY needs to hold $450 for next leg up.

QQQs have new support level at $375.

YouCanTrade Coach Shaun’s Play Of The Day

Todays trade i am looking at is on POWW  ( AMMO INC)
This stock has been range bound between $7 and $8  and i am looking for a neutral to slightly bullish trade to put on. I am going to purchase 100 shares at $7.50 or better and i am going to sell a $7.50 call expiring in Sept to give me some small downside protection. This is called a covered call strategy. Total risk on the trade is price paid for the stock less premium received. If the stock closes above $7.50 at expiry it will give me a nice 6% profit in 3 trading weeks.

YouCanTrade Coach Shan’s Play Of The Day

$AXP(American Express Company)  was up by more than 1.40% on Friday along with the overall market gain of around 1%. The stock is rebounding nicely from a recent support level of $156.88 and may now looking for all time high of $179.67. In the recent quarter the company reported a strong growth of 33% in revenue and almost 8 times rise in Net Income. With strong focus on small businesses and personalized services lately, it competes well with the BNPL providers and has received number one ranking for customer satisfaction.

On the flip side, the recent rise in infection and death numbers due to the Delta variant could spoil the party during the holiday season next quarter.  On the downside it could go down to $160 again and there after $150 levels, which though seems farfetched to me.

Watch List

Symbol Why We’re Watching
AAL Potential strong move higher on recapture of 50 SMA.
BBBY Former high flyer needs break of $30 to pop.
PNC Major $195 resistance area on deck.
IWM Break of Friday’s high could cause move to $230.
PYPL Caught in $270-$280 range.

YouCanTrade Scanner Ideas

Symbol Idea Direction
CAT Short
SHAK Short
MU Short
FB Long

For more information on the YouCanTrade scanner, click here. 

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September 7, 2021

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