Send me real-time posts from this site at my email

Today's Trackdown: Friday - July 31, 2020

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 Friday morning:

  • Futures trade vs fair value were trading higher late last night. Note: Nasdaq set to blast off this morning after good earnings reports from some of the big boys like Apple!
    • Dow +90, S&P +20, Nasdaq +202, Russell +1. (11:30 pm ET).
  • We still look ok technically - But use "Caution" message has been on here for a while for a reason. (Quick sell-offs are a possibility at anytime - so we continue to leave this note).
  • The biggest factors in the market right now are; the Fed, Coronavirus headlines, how the economy is re-opening or not, the Global Economy, China, and upcoming elections.
  • Watch the VIX - (CBOE Volatility Index) - remains elevated compared to historical standards, but no panic. We are now under 25 on the Vix.

Today's Economic Calendar:

8:30 AM ET, Personal Income and Outlays, June 2020. The consensus is for a 0.5% decrease in personal income, and for a 5.5% increase in personal spending. And for the Core PCE price index to increase 0.2%.

9:45 AM, Chicago Purchasing Managers Index for July.

10:00 AM, University of Michigan's Consumer sentiment index (Final for July). The consensus is for a reading of 72.9.


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:

Stocks ended mixed on the day Thursday. The big news was after the close when some of the big tech companies reported their earnings. Apple surprised to the upside and announced a 4 for 1 stock split. The Nasdaq is up over 200 points after hours on Apple's and other big tech earnings news.

There were no big changes to our charts. Although we will point out the even though we had a red candle for the SPY on Thursday, the Money Flow actually ticked up as the market was bought up of the early lows. This is one of the big reasons to follow the Money Flow as it shows if there was a buying interest or not.

Note:  We are still over the SPY 320 line that we have been watching for a while. For now we will keep watching it as we are not ready yet to call it a support. It could become a support line for us very soon though.


* Don't risk to much, there is still a lack of CERTAINTY in the markets. *

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:

  • none

POSITIVES:

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

NEGATIVES:

  • What about the Fundamentals? Virus, Economy & Jobs, Elections, Politics, The FED, and China troubles?
  • A lot to think and worry about.
  • The Vix is still a bit high and may remain high for the foreseeable future.


OPINION:

  • Currently we are above the 20-day, 50-day and 200-day MAs. (Bullish).
  • The 20, 50 and 200-day MAs are both heading higher now. (Positive slopes). This is bullish.

  • Technically the market is in good shape, but keep in mind the fundamentals are questionable currently and a bit unpredictable along with lingering virus fears to deal with. There is a cloud of uncertainty / a wall of worry to climb.

  • Longer-term we look ok, but we say "Use Caution" for a reason. Do not over risk yourself or over leverage yourself.
  • Be aware that we are still susceptible to large drops or dips with a level of uncertainty hanging over us!
  • Look for trading opportunities that could result and have your trading lists ready.

* Do not use MARGIN at this time unless absolutely certain of your trade! *

INDICATORS:

The MACD is positive. The Stochastics are neutral. The Money Flow is positive.

MA +/- (slope): The 50-day MA (312.11)(+0.66) and the 200-day MA (301.77)(+0.16)

The 9-month chart (below).

We are above the 200-day moving average and SPY 300. Which are good support levels. (Bullish). This has been a big positive technically.

We have climbed above 320, but will leave it marked as a watch level for now.


STOCKS: (Our most recent FULL TRADING LIST is posted here).

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

  • Current trading favorites: AMRN - Amarin, AUPH - Aurinia Pharma (Their Lupus drug is on a path to approval), EPZM - Epizyme, EXEL - Exelixis, HZNP - Horizon Therapeutics (has been making new all-time highs), IOVA - Iovance (Is at an attractive buy level), IMMU - Immunomedics (Buyout possibility + been making new all-time highs!). KPTI - Karyopharm, TGTX - TG Therapeutics (Our Top Pick!).
  • If your thinking longer-term/income: T - AT&T is worth a look - high dividend yield.
  • Tech Picks: CRWD - CrowdStrike, DT - Dynatrace.

* 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.


If you liked this article, please click the LIKE (thumbs up) button.

Feel free to leave any comments, question, or opinions. (Sign-up if you haven't already done so)!

Follow us/bookmark us and check back occasionally for additional articles or comments on our page...

Wild Tiger Trading - start/main page.

With our Daily Trackdowns, check back for additional analysis/observations during the trading day in the comments by us or our readers.

.
Are you interested in trading stocks to supplement your income or make a living? Maybe become a professional trader? Many traders have the skills and nerves to trade, but not the upfront capital.Well now that problem is solved!
Try2BeFunded
has expanded its trading program! If you're a novice or experienced trader, you can earn access to a trading account with up to $100,000! To learn more about how to qualify, click HERE and give it a shot! You have nothing to lose it is free to try.

Give Try2BeFunded a try!

.

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue