Morning Market Briefing – Off The Mat

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Morning Market Briefing – Off The Mat

Morning Market Briefing

Morning Market Briefing – Off The Mat

July 22, 2021

Good Morning! Wednesday’s market action finished erasing the Friday-Monday pullback and put bears on notice for the rest of the week. The moves backed up the bullish thesis of a bounce off the 50 SMA in the SPY and the tech leaders pulling the QQQ up with them. The travel stocks, such as AAL, UAL, LVS, MAR, etc, seemed poised to participate in the next run up, though caution of new partial or full lockdowns around the world could put a damper on those sectors.

Can we complete the run to new all-time highs in SPY?

Big tech names can carry QQQ to new highs.

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.

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.
FB Needs hold of $345 for next leg up.
PYPL Needs hold of $300 price level to head back to highs.
ROKU Needs to hold $420 for next push up.
INTC Long term watch, caught in $54-$58 range.

YouCanTrade Scanner Ideas

Symbol Idea Direction
AMZN Long
BAC Short
BABA Short
PTON Long
DIS Short

For more information on the YouCanTrade scanner, click here. 

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2021-07-21T21:47:29-04:00
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