Morning Market Briefing – Yellow Light

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Morning Market Briefing – Yellow Light

Morning Market Briefing

Morning Market Briefing – Yellow Light

August 3, 2021

Good Morning! A reminder it’s Welcome Week for YCT Crypto Coach Karadi!  He’s the early bird of the YCT family, with his room starting at 8:30am EST. Check him out as part of our All-Access Pass.

Morning futures are slightly green after a rough go of it yesterday. After a small gap up, the markets spent most of the day selling off. Monday’s session lows will be the line in the sand today as markets look to hold their ranges from the last few sessions. Remember, while the finance media will be trying to explain each and every move in the markets, we as technical traders aren’t concerned with the why, only the what. The markets went down yesterday because there were more sellers than buyers, and we don’t concern ourselves with the rest.

SPY at the bottom of the $438-$442 range.

QQQ have key level at $365.

YouCanTrade Coach Shan’s Play Of The Day

$AMAT (Applied Materials) has been a star performer since last 12 months gaining more than 122%. With the earnings approaching on the Aug 12, the stock seemed to have picked up new steam crossing the resistance line on Monday while all the leading indexes remained subdued after the morning euphoria. The semi-conductor industry is going to be in high demand for at least the next couple of years and the company would probably report another stunning quarter due to supply shortage in general. Since there’s no other immediate resistance levels, we might look forward to the company reaching an all time high before the earnings surpassing previous high of 146. The MACD is picking up while Stochastics and RSI are still bullish.

On the other hand, if the stock fails to beat the analysts’ expectations due to lower than impressive results, the stock could sharply revert back to the strong support level at 129.31.

YouCanTrade Coach Shaun’s Play Of The Day

Todays trade idea is on the ETF YINN – This is a Chinese ETF that like many Chinese stocks has been out of favor for the past few weeks
Stochastics looking for possible bullish bias while the MACD remains a bit more undecided on the daily time frame. If the pricing is still around the $12.50 stock area in the morning I will be looking to initiate a broken wing butterfly using the Sept 3 expiry . I will be selling to open the 12.50 put and buying to open the put spread and selling to open the 12.50 call and buying to open the 13.5 call spread expiring Sept 3 trying to collect a minimum of $1.25 credit. Margin held will be $300.00 and is my maximum risk less the premium received. Maximum reward will be the premium collected if the stock expires right at the $12.50 strike area.
I will not hold to expiry though if i can take it off for a profit of .30 cents or more which would be  a gross return of 10 percent on the $300 margin originally on the trade when initiated.

Watch List

Symbol Why We’re Watching
MU Could see quick move to $80 on break of $80.
FUBO $28 break could trigger quick upside move.
LYFT $57.50 could be potential long trigger.
NFLX Could see a quick move to $530 on retake of 8 EMA.
FUBO Recent meme stock in tight range between $26-$28 range.

YouCanTrade Scanner Ideas

Symbol Idea Direction
FB Long
BAC Short
BABA Short
PTON Long
MGM Short

For more information on the YouCanTrade scanner, click here. 

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2021-08-03T08:25:51-04:00
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