Weekly Raid #21
Happy Hump Day Trades
Happy Wednesday Traders
Markets gave us one hell of a move yesterday to trade. The Fade and Rally is a classic, and if your paying attention can really help pad your PnL for the week.
There was not a lot of trading yesterday for me. I took a small AAPL trade around 10am and closed it early afternoon for an average of 55% profit on the position. Not great but not terrible for a day trade.
Lets take a look at what today has in store for us.
News of the day
We are sitting pretty flat premarket. AAPL is up slightly as is Energy, but not on any real news.
There are no really big news announcements today again with EIA numbers at 10:30 the big numbers. This will probably have a solid impact on the energy sector and may provide some volatility but I don’t expect to have any lasting impacts on the broader market.
I am still watching the 10year-3month rate as I showed in yesterdays post, and not much has changed on that. We are chopping around and the deeper this spread goes negative the worse a potential recession could become.
I am also watching the 10 year bond auction at 1pm. This will directly impact the spread above and should give a little more clarity about any risk investors are seeing after the US credit downgrade last week.
Final thing I am looking at today is the SPY on the hourly basis. We have had a pretty solid trendline in the month of August. We brother through it in the overnight, so if we stay about it then a rally may be in the books. What I think is slightly more plausible is we drop back below the trendline and look for continuation to the downside. If that is the case then I will be watching for short setups on the list below.
TSLA - Just crossing back over the VAH for the last several months, we clear the cluster of POCs around 255ish and it could be game on to head back up to high 200’s/share.
AAPL - I am still watching Apple, we bounced off our monthly POC for August and are gapping up pre-market. I think fi we can clear the 182ish level with some force we could see a potential run to 186 and then a setup for a Gap fill back to the low 190’s
XOM - Watching Exxon as a proxy for oil with the EIA numbers out this morning. Going to look for a pop and fade trade potentially so that we stay in the recent balance area. If we pop and test the highs from above and continue higher we are not on for a break of balance trade.
Finally some other tickers I am watching today based on various biases and chart setups:
AMZN - Amazon
PLTR - Palantir
LULU - Lululemon
COIN - Coinbase
GS - Goldman
JPM - JP Morgan
As always trade well and Good Luck