Morning Market Briefing – What Dip?

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Morning Market Briefing – What Dip?

Morning Market Briefing

Morning Market Briefing – What Dip?

August 23, 2021

Good Morning!

How different things have been since Thursday’s open. Last Thursday, the market gaps down after two days of red candles. Volatility was spiking and the market internals were showing some real weakness. Since then, however, the markets have been pushing nearly straight up, with buying in nearly every sector. Friday saw a complete reversal in the internals, with the $ADD moving from sub -1,500 to +1,500 intraday on Friday. Futures are green this morning as we look for our next push to new all-time highs. Travel remains the best sector for value, with names like AAL, DAL, EXPE, LUV, MAR, LVS, and others having been beat up over the summer. However, those names also have the delta variant news hanging over them as well.

SPY back above $440 price area, watch for run to highs.

QQQs approaching key level of $360 / 50 SMA.

YouCanTrade Coach Shaun’s Play Of The Day

Some strong moves in certain sectors today while muted in others for sure.
Todays trade is once again on Chinese ETF, YINN. Chinese stocks have been out of favor but the pricing has now come down into areas not seen very often in the past 10 years. If prices open at $10.50 or under I am going to do a rather interesting trade.
I am going to Sell to Open the 10 put and Buy to Open the $6 put expiring Sept 17  . I am then going to use the funds to Buy to Open the 10 strike and Sell to Open the 16 strike for somewhere between 30 to .45 cents debit. Breakeven on this trade would be with the stock closing at $10.30  at expiry  and max profit would be $6.00 less premium paid .

Max loss on this trade would be $430- $445.00 depending on what was paid to get into this trade. This is the width of the strikes plus a debit of $30.00 to $45.00 to get in the original trade.

YouCanTrade Coach Shan’s Play Of The Day

With a strong 5Yr return on the share price of 112%, $CCI (Crown Castle International Corp. LTP 198.39) is a modern infrastructure REIT which owns, operates and leases wireless infrastructure and cell networks. The company has an impressive 5Yr Earnings growth of 104%. Currently the stock price is on a bullish momentum after crossing both 20EMA and 50 EMA and still MACD, Stochastics and RSI have further steam to march upwards. From the current prices the stock could potentially go up to $204.62 in the short term.

On the downside if it fails to keep the momentum, it can go down up to the next support level at $190.00.

Watch List

Symbol Why We’re Watching
AXP Watch for price action to reclaim $162 and the 8 EMA.
BAC Watch for hold of 50 SMA and push over 8 EMA
AMZN Big support level of $3,200 being tested.
ROKU Could pop if it gets above both $360 and 200 SMA.
FL Testing 200 SMA.

YouCanTrade Scanner Ideas

Symbol Idea Direction
VZ Short
WDC Short
IBM Short
INTC Short
JWN Short

For more information on the YouCanTrade scanner, click here. 

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2021-08-23T08:03:42-04:00
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