Morning Market Briefing – Rounding Top?

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Morning Market Briefing – Rounding Top?

Morning Market Briefing

Morning Market Briefing – Rounding Top?

July 29, 2021

Good Morning! The mid week session brought (mostly) inside days in the indexes. News was highlighted by a fed announcement that was more predictable than the plot of any NFLX original series. The markets seem to be adjusting to the idea of earlier than expected rate hikes in 2022, as the SPY and QQQ rallied a bit off their respective bottoms after Powell’s presser. Both of those indexes are putting in modified “cup & handle” patterns on the hourly, and we’d look for a break of Wednesday’s high in either to continue our bullish mindset. Crypto’s Wild Ride continues with Bitcoin back over $40,000 as well.

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

Inside day for the QQQs, watching $367 as key area for upside break.

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.

YouCanTrade Coach Shan’s Play Of The Day

With excellent 2nd Quarter June Earnings Report announced today $GRMN (Garmin Ltd) has created short term momentum to the recent uptrend. The stock has performed very well in the last 15 months and there is no immediate resistance as of now. Hence, it may continue the rally for some time creating bullish opportunities in the short term. The current price is above 5 EMA, 20 EMA and well above 50 EMA. The volume was strong in the past couple of weeks and continue to build. On the downside, there could be profit booking sell in the next few days and the stock could go down up to the support level at 145.

 

 

Watch List

Symbol Why We’re Watching
BAC Possible 38.50 upside trigger.
FUBO $28 break could trigger quick upside move.
DIS Could see bounce from $180 to $185.
NFLX Could see a quick move to $530 on retake of 8 EMA.
MAR Long side breakout possible over $145.

YouCanTrade Scanner Ideas

Symbol Idea Direction
CDW Long
CRW Long
JPM Short
LOW Long
UBER Short

For more information on the YouCanTrade scanner, click here. 

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2021-07-29T07:36:09-04:00
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