Weekly Rad #27 - The Ole razzle dazzle premarket
Happy Monday Traders!
Hope you are ready for another week. We are solidly off of Fridays lows so lets see if the market can maintain some momentum of it bulls will spit the bit.
News of the day
There is no news of any real importance scheduled for the day. There are some short term auctions scheduled for 11:30 but I cant seem those moving the market much.
China appears to be dragging a lot of the world economy down with it. A second huge property company has filed for Bankruptcy protection and many many companies are feeling the heat as demand both domestically and abroad stumbles.
China has a near 25% Unemployment rate for men under 30 as of last report, and they have stated they will no longer be releasing this information to the public (that’s how you know they expect something great!)
Other than that there is not much I see affecting us today and this week that we haven’t already talked about in past issues. Watching yields will be vitally important as we move forward.
Onto the important stuff for the day, what are we watching?
SPY is up first. We are coming into a minor resistance level, but I don’t expect any meaningful pushback from it so if buyers show up today I think we could be in for some fun. However the alternative is also true. If Buyers spit the bit around 438-440 level I think the upper 420’s could be in the cards.
NVDA is still a short position I have open with earnings this week. We are up $10 premarket so i will feel some pain on that on the open, but we will see how it goes. I still hold a bit of a short bias on it due to chart, volume, and options flow. Plus with earnings this week I think anything is possible.
X is still hanging out around it’s highs in the lower 30’s. Keeping an eye on this for news of no actual sale/offer and for a return back to the mid 20’s. This is more speculative and will probably be played via credit spread.
CAT still has an earnings gap below as well, so any weakness in the general market I will be watching for that to break and fill. That will put us around a yearly VAH and at previous resistance/new support. I will be watching there to initiate a potential trade.
As always trade well and Good Luck