Weekly Raid #71 - MU(sic) to my ears
Tuesday has arrived, let’s see what the market has in store for us today.
I know at the very least we have some earnings due and I think we will see the market make a decision on direction once the earnings are done this week.
News of the day
Today we have the S&P Composite, Manufacturing, and Services PMI. The composite is the one I would look at as it has a blend of the other two. Based on expectations it appears that business activity is expected to remain about the same around 50.
Watching some other factors like factory orders and input cost would supply a better clue about how actual business activity is going.
Today we have some high power earnings coming out.
Microsoft, Google, HSBC, Visa, and Coke are all out at various times today. All of these have heavy ties to the consumer, and other than Google and Microsoft (which also have a heavy business segment) are going to be very telling about where they view the economy heading.
I would take particular interest in what Microsoft, Visa, and Coke have to say in their guidance reports. Microsoft is in consumer electronics, Coke is in food and beverage, and Visa, well Visa finances the first two. Rates are hammering every part of the economy at this point so I would look for that to take a toll on guidance.
TSLA is first up today. I did not get a solid trade off on it yesterday, but it still looks like it could be primed for a move with some market participation. We pushed right into a volume ledge on the yearly and reversed pretty sharply. If we can hold above that ledge I think a return trip to at least 235-240 is possible.
MU I am watching for a possible Condor as the price just keeps bouncing around in the channel on the chart below. I think if you wanted to fire a trade off immediately then an Iron Condor would be the way to go. If you did not I would wait for it to push and edge and either play an option or a spread back towards the middle
I know it’s a shorter watchlist today, but I am also in some SPY and XOM calls that I am watching as well and I hate to trade during earnings. The unpredictability of it makes it a poor risk/reward in my estimation.
As always trade well and Good Luck
As always this is all for educational purposes only. You are solely responsible for your trades as I am for mine. Nothing in here should be construed as financial advice, but only educational content about the markets and my particular trading style.