Morning Market Briefing – Uh Oh

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Morning Market Briefing – Uh Oh

Morning Market Briefing

Morning Market Briefing – Uh Oh

August 19, 2021

Good Morning!

As we mentioned in yesterday’s MMB, market internals were not agreeing with the most recent push up, and in the final thirty minutes of Wednesday’s trading session, the bottom fell out. Both the SPY and QQQ rolled hard into the close, giving up key support areas en route to putting in bearish candles. As of 5:00 AM eastern, futures were pointing to a continued move lower into Thursday’s open. Thursday’s session, and specifically a breakout or breakdown of the the sixty minute opening range will be very important. The key now is whether or not the major indexes’ 50 day SMAs come into play over the next 2-3 sessions. As always, wait for confirmation on any moves, and protect your capital.

SPY has $437 and 50 SMA as next levels of support.

QQQs break of $364 and 21 EMA put 50 SMA on deck.

YouCanTrade Coach Shaun’s Play Of The Day

Fed speaks markets gyrate and then go back to normal and life moves on. Today’s trade is a bearish trade on an ETF called Teucrium Soybean FD (SOYB ). Agriculture products have been on a tear all year and this fund is up to levels not seen since 2013 and 2015 which in both cases did not stay at those lofty levels for long . The stock is around $23.15 as I write this so I will be looking to simply short the market ( advantage is no theta or time decay) or I will buy at ATM 23 put option for approximately $1.00 debit.
Max loss on this trade is  the price i pay for the option and I will  lose it all if price closes at $23.00 or higher on Nov 19 expiry. Profit potential is not capped as price in theory could go to zero but I don’t think that will happen on this ETF.

YouCanTrade Coach Shan’s Play Of The Day

When the market is down in general I look for some growth stocks. $CRWD (CrowdStrike Holdings Inc. LTP $233.00) provides cloud-delivered endpoint protection. Leveraging artificial intelligence, the CrowdStrike Falcon(R) platform protects customers against cyberattacks on endpoints on or off the network. Cyber and Internet Security would have huge demand in the medium and long term future when remote working would be the norm. The stock has already returned 118% in the last year but is currently in oversold region and have all the necessary firepower to move upwards to previous high of $270 or more. The immediate resistance level is at 235.63 and then 50 EMA at $253.11.

On the down side, the current pull back in Nasdaq stocks could take the stock to the support level of $228.61 and then further down to $221.59.

Watch List

Symbol Why We’re Watching
ROKU Possible breakdown below $344.
ZM Watch for quick move to $330 on break of $340.
AMZN Big support level of $3,200 being tested.
AMD $100 on deck after break of $105.
PTON Possible breakdown below $110 price level.

YouCanTrade Scanner Ideas

Symbol Idea Direction
AAL Short
BA Short
IBM Short
INTC Short
JWN Short

For more information on the YouCanTrade scanner, click here. 

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