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

Today's Trackdown: Friday - May 22, 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 lower late last night.  China causes the Hong Kong market to decline as they tighten security.
  • We have stayed above SPY 280 and that is a big technical win for the markets.
  • Dow -215, S&P -26, Nasdaq -89, Russell -17.
  • The next level up is the more difficult level to cross we think - the 200-day moving average. We are stuck just below this.
  • The biggest factors in the market right now are; Coronavirus headlines, how/when the economy will re-open, the Fed, the Global Economy and Global Geopolitical conflicts.
  • Keep an eye on the VIX - (CBOE Volatility Index) - (29.53). It is still elevated, but well off the higher panic like levels.

Today's Economic Calendar:

10:00 AM: State Employment and Unemployment (Monthly) for April 2020


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 markets had a slightly lower day on Thursday with light volume. We are still staying just under the 200-day moving average. This is turning out to be a tough line to cross! On our charts we had some changes. The Stochastics are now high/overbought and the Money Flow has dropped back down to near neutral.

We are remaining just below the 200-day moving average. The 200-day moving average (297.22) is the next level of resistance. This level could be strong resistance as it is a heavily watched and significant level. It is no coincidence that the market rallies get turned back just below this level.

* We could be in a large trading range for a while with 200-day MA as the top line and the 50-day MA or SPY 280 as the bottom line.

* 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:

  • The Stochastics are now high/overbought.
  • The Money Flow dropped to neutral.

POSITIVES:

  • We are over the 20-day moving average.
  • We are over the 50-day moving average.
  • The 50-day moving average is rising.
  • We have held above support at 280.

NEGATIVES:

  • We are under the 200-day moving average.
  • The Vix is still high / above 20.


OPINION:

  • Currently we are above the 50-day MA and SPY 280. (Bullish).
  • 280 is currently support. (Bullish).
  • Next resistance level is the 200-day MA. Just under it now!
  • On a technical basis we are in good shape, but the 200-day MA maybe hard to get over.

  • Be aware that we are susceptible to large drops or dips with the current level of uncertainty.
  • Look for trading opportunities that could result due to higher volatility!
  • Have your trading lists ready.

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

INDICATORS:

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

MA +/- (slope): The 50-day MA (271.38)(+0.44) and the 200-day MA (297.22)(+0.06)

On the 9-month chart below, we are looking at a severe and quick drop of the market and then a rebound. About half the losses were recovered and then a sideways period brings us to where we are today.

The 280 line is now considered as support. It is a good technical sign for the markets that we have stayed above 280.

A large triangle is drawn on the chart. We appear to be staying above this triangle. (Bullish).

* Continue to use caution - Still many unknowns. *

STOCKS: (Our most recent FULL TRADING LIST is posted here). Updated May 10th.

  • Current favorites: $AMRN - Amarin, $AUPH - Aurinia Pharma, $BFYT - Benefytt Tech, $COLL - Collegium, $EPZM - Epizyme, $EXEL - Exelixis, $HZNP - Horizon Therapeutics (new all-time highs), $IOVA - Iovance (buyout rumors), $IMMU - Immunomedics (FDA approval recently!), $KPTI - Karyopharm, $TGTX - TG Therapeutics (Positive drug trial results recently!)
  • If your thinking longer-term/income: $T - AT&T is worth a look - high dividend yield.
  • Tech Pick: , $CRWD - CrowdStrike.

* 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.

.

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