Morning Market Briefing – Trouble in Tech?

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Morning Market Briefing – Trouble in Tech?

Morning Market Briefing

Morning Market Briefing – Trouble in Tech?

August 11, 2021

Good Morning!

Markets may have show a couple of cracks in the armor yesterday in the QQQs. While the SPY put in yet another low volume all-time high, the QQQs put in a bearish engulfing candle. Of course, these candle signals are not 100% right, nor does it mean it has to confirm right away, but it is worth noting. Volume conviction on the next move will be key as well. If the markets decide to sell off on higher volume, it could signal the beginning of another correction. Keep in mind, corrections are a healthy thing in the markets, giving the short term bears some profit and the long term bulls a chance to either enter new positions of dollar cost average the ones they already have. But until the volume returns, we wait.

SPY needs to maintain $442 for next leg up.

Bearish engulfing candle needs to confirm in the QQQs.

YouCanTrade Coach Shaun’s Play Of The Day

Markets still a bit like baking a cake , mixing things up and seeing how it turns out. A lot of nothing going on in a lot of stocks this past few days. Todays trade is a earnings play ( CLOV  Clover Health Investments )  . It has a large short float and it often likes to give the shorts a bit of grief as well . I will be purchasing stock tomorrow if the price is below $9.00 and then I will be selling the 30 delta call expiring Sept 17 .
Based on the pricing as i write this $8.46 , i will be selling the Sept 17 11 call for approx. .60 cents credit. Risk on this trade is the price I pay for the stock less the premium on the covered call. Max profit at expiry will be $11.00 for the stock that would be assigned and  I will  keep the premium as well as the capital appreciation on the stock

YouCanTrade Coach Shan’s Play Of The Day

$CHS (Chico’s FAS Inc.) is a cultivator of brands serving the lifestyle needs of fashion savvy women 30 years and older with brands like Chico’s, White House Black Market and Soma. The stock is trending nicely above 20EMA and 50EMA for a possible break out with a gain of 7.36% on Tuesday. In the last earnings report for Q1, the revenue grew 38.4% YoY. With LTP at $6.56, there’s no immediate resistance on the price with strong support lines at $6.48. The stock has gained momentum with RSI, Stochastic and MACD pointing higher at this point and it could go up to $7.03 in the short term.

On the downside, after the recent spike the stock could take breather for a short while. If it breaches $6.48, it could go upto the next support is way down at $4.95.

Watch List

Symbol Why We’re Watching
USB Banks have shown strength. Watch for break of $58 to confirm 50 SMA breach.
AAPL Building to a breakout or breakdown of multi week wedge pattern.
EBAY Could retest $60 on break of $65.
AMD $108 is 50% fib level on recent move.
UPS Could test 200 SMA on break of $190.

YouCanTrade Scanner Ideas

Symbol Idea Direction
DIS Long
EA Short
LOW Short

For more information on the YouCanTrade scanner, click here. 

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