Morning Market Briefing – Reverse or Continuation?

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Morning Market Briefing – Reverse or Continuation?

Morning Market Briefing

Morning Market Briefing – Reverse or Continuation

July 30, 2021

Good Morning! Consolidation patterns like we’re seeing in the SPY and QQQ can take many forms, but ultimately lead to one of two conclusions. Reversal or continuation. At this moment, the SPY shows signs of continuation, and the QQQ is a little more indecisive. With the morning futures pointing down, we’ll need to be cautious on initiating new longs heading into the weekend. Key areas of support will need to be watched on Friday, and as usual, our 30 and 60 min opening ranges will be good signposts to evaluate the day.

SPY needs to retake $440 for a pop back to highs.

QQQ have key support level of $365.

YouCanTrade Coach Shan’s Play Of The Day

After the recent split $NVDA ( Nvidia Corp) is still appearing strong with the price. Even though the volume is comparatively lower, the stock is bullish with 5 EMA crossing over 20 EMA, ahead of the Earnings on Aug 18. The RSI and Stochastics both are still rising and below overbought region.

However, on the downside the stock could go up to 180 if it doesn’t hold the current price and profit booking starts prior to earnings announcement. These are new price territories for $NVDA as the stock was split last week and hence there is a potential downside with thin volumes.

 

 

YouCanTrade Coach Matt’s Play Of The Day

The banks have been a perplexing sector for the last few weeks and Citibank “C” is one I have my eye on. This is a simple idea of playing for the first close above the 21 EMA since June 8. If I see that before Friday, the idea would be to buy a $68 call in the August monthlies. I would look for a stop on a close below the 8 EMA and my profit target would be a test of the 50 day SMA. As always, my max risk is what i pay for the call.

YouCanTrade Coach Shaun’s Play Of The Day

 I will be looking to initiate a bullish position on CPB ( Campbell Soup ) , It has been in  very tight consolidation for the past 7 weeks with support around 44.00 and resistance around 46. 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. I am going to place a 44/40 put credit spread and sell a 44/45 call spread if the pricing is around the $44.00  area on Thursday open.

I should be able to get around $1.45 credit for being filled. This will be a no risk trade to the upside and give us downward protection to $42.55. I would be looking to take this trade off for around  $1.05 debit. To recap I make profit if stock stays above $42.55 and max profit will be if the stock closes around the short strikes. I’ll be using $400 in margin but bringing in around $145 on entering the trade . So I’m are potentially risking $255 to make $145.

Watch List

Symbol Why We’re Watching
FB Watch for break of $358 support.
FUBO $28 break could trigger quick upside move.
DISH Could dip back below 50 SMA.
NFLX Could see a quick move to $530 on retake of 8 EMA.
TSLA Ever elusive $700 on deck in coming days.

YouCanTrade Scanner Ideas

Symbol Idea Direction
CSCO Long
LOW Long
JPM Short
GS Long
MGM Short

For more information on the YouCanTrade scanner, click here. 

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2021-07-30T08:13:41-04:00
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