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Today's Trackdown: Monday - Feb. 8, 2021

SPY Charts and some Technical Analysis

News to keep in mind Today - Today's Economic Calendar - The Charts - Opinion - Stock Picks.


News to keep in mind Monday morning:

  • Futures trade vs fair value were trading a bit higher late last night. -- The Bulls are back in control. --
    • Dow +140, S&P +16, Nasdaq +77, Russell +10. (11:35 pm ET).
  • We look good technically - But use "Caution" message has been on here for a while for a reason. (Quick sell-offs and/or getting overbought are a possibility at anytime - so we continue to leave this note).
  • The biggest factors in the market right now are; Coronavirus headlines, the US economy, the Global Economy, any political drama.
  • Watch the VIX - (CBOE Volatility Index) - This has settled back down into the low 20s. Risk coming back on/in.

Today's Economic Calendar:

No events today.


THE CHARTS:

(NOTE: Charts are a good guide, but when a tweet or news item can jerk the markets around, they mean a bit less.)

BRIEFING:

The market has a nice continuation rally again on Friday which resulted in more new all-time highs for the Nasdaq, Russell, and S&P 500. On our chart indicators, the Money Flow has gone positive while the MACD is getting close to a positive cross over. The Stochastics are starting to get a bit high again, but not an immediate threat. The Vix is also close to breaking down below 20, which would mean 'risk back on' for many traders. So currently the bulls are back in control of the markets.

Chart wise, we are back into and continuing on in the previous uptrend. On the longer term 8-month chart, we remain inside the dominant longer term uptrend.

** - Repeating - But, how long can this uptrend continue? The possibility of a consolidation, sideways market, or pullback of some kind may happen at some point. But not necessarily. Positive momentum and easy money can keep driving us to new highs.

Note: The Russell 2000 (small caps) are definitely leading the markets so far this year. Their positive uptrend is still intact.

IF wanting to gamble: Options trades on these ETFs will give you a way to place your bets. $TQQQ - $SQQQ - $SPXL - $SPXS.

* Beware - levered ETFs are subject to decay and are not for long-term holding. *


CHANGES:

  • The MACD is about to have a positive cross over. (Bullish).
  • The Money Flow has recovered to slightly positive.

POSITIVES:

  • The MACD is positive.
  • We are over the 20-day moving average, which is rising.
  • We are over the 50-day moving average, which is rising.
  • We are over the 200-day moving average, which is rising.

NEGATIVES:

  • Possible market top someday?
  • What about the Fundamentals, Valuations, Virus news, the Economy, Jobs, Election issues, Politics, The FED, etc.?
  • Some things out there to worry about still! Or a wall of worry to climb as the saying goes.


OPINION:

  • Currently we are above the 20-day, 50-day and 200-day MAs. (Bullish).
  • The MACD is headed upwards.
  • On the 4-month chart it appears we are still 'buying the dips'.
  • O the 8-month chart we are in a strong uptrend channel.

  • The possibility of settling into a trading range 'someday' is a possibility.
  • At the moment, bulls are in control with easy Fed money and more stimulus.
  • Momentum continues to the upside.

  • But, we still say "Use Caution" for a reason. Do not over risk yourself or over leverage yourself.
  • We are still susceptible to large drops or dips.
  • Look for trading opportunities that could result and have your trading lists ready.

* Be careful if using MARGIN at this time, be certain of your trade! *

INDICATORS:

The MACD is positive. The Stochastics are high/neutral. The Money Flow is slightly positive.

MA +/- (slope): The 50-day MA (372.79)(+0.63) and the 200-day MA (334.88)(+0.57)

The 8-month chart (below).

We are above the SPY 365 support level.

The market has been in an impressive up-channel since June. Technically still looking well.


STOCKS: < Favorites & Trade Ideas > <-- Click here for the quotes, details, news and previous opinions on our Favorites and Trade Ideas lists!

  • Current trading favorites: $AUPH - Aurinia Pharma (Their Lupus drug has been FDA approved), $EPZM - Epizyme, $EXEL - Exelixis, $HZNP - Horizon Therapeutics (A big winner for us last year), $IOVA - Iovance, $KPTI - Karyopharm, $SGMO - Sangamo, $TGTX - TG Therapeutics (Our Top Pick!).
  • Tech Picks: $CRWD - CrowdStrike (Although be aware it has a high valuation now).
  • Also watching: $OMER, $SRNE, $TRIL, $VKTX.

* Feel free to share your list/picks in the comments below.


Disclosure: I may trade in the ticker symbols mentioned, both long or short. My articles represent my personal opinion and analysis and should not be taken as investment advice. Readers should do their own research before making decisions to buy or sell securities. Trading and investing include risks, including loss of principal.


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