Morning Market Briefing – Trickle Up

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Morning Market Briefing – Trickle Up

Morning Market Briefing

Morning Market Briefing – Trickle Up

August 26, 2021

Good Morning!

Market’s basically replicated Tuesday’s price action yesterday and staged another session of slow, low ranged bleed up. Both the SPY and QQQ have put in one or more NR7 candles this week, and seeing those stack up would lead us toward a thesis of price action expansion heading into the weekend. 4500 on the ES and 450 on the SPY is building toward being a very key area, with options activity growing each day. The Jackson Hole Symposium starts on Friday, and markets may be waiting to see what, if anything comes out of that before the next strong candle.

$450 huge price area on SPY.

QQQs with two narrow range candles in a row.

YouCanTrade Coach Shaun’s Play Of The Day

So back to our more normal markets  showing us a mixed bag of results.

Todays trade is on COIN. If Coin is between $250 and $260. I will be taking on two different trades . First trade is a butterfly where i will buy a $240 call  STO (2) $260 calls and BTO $280 call . I should get filled for approx. $5.50 debit . Charts look bullish on the daily and i am anticipating another move up . I am risking $5.50 which is my max loss and my max profit potential is $20.00 per share. I will also be doing  a credit spread I will also put on a $225 /$220 put spread for around .50 cent credit . Higher chance of winning on this trade statistically but much smaller profit potential. Max loss on this trade would be the  width of the strikes less the premium received  Both trades are bullish in nature but allow those looking at this trade the opportunity to paper trade it and see how it turns out.

YouCanTrade Coach Shan’s Play Of The Day

With more relaxations from the Covid restrictions and opening up of the economy, the companies like $ESS (Essex Property Trust LTP $317.95) get new energy. The company raised their forecasts for the next quarter based on the renewed interests from the property investors and buyers. The stock is currently trading in the oversold region in Stochastic and MACD and looking to break out in the upside anytime soon. There is a good support available at 50EMA for that matter and it currently rests there. On the upside it can go up to previous high of $336.75 in the next few weeks if not days.

On the downside, the broader market is still cautious and in case the stock does not break through the 50 EMA, then it can go below the 50EMA to the level of $300 which would act as a nice support in the short and medium term.

Watch List

Symbol Why We’re Watching
TMUS Possible breakdown below $140.
SBUX Watch for potential pop above 50 SMA.
PYPL Needs confirmed break of $280 for next leg up.
TWTR $65 key level for upside momentum.
DIS $180 overhead resistance.

YouCanTrade Scanner Ideas

Symbol Idea Direction
BA Short
DIA Long
F Short
WFC Long
FB Long

For more information on the YouCanTrade scanner, click here. 

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