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Today's Trackdown: Wednesday - April 7, 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 Wednesday morning

  • Futures trade vs fair value were trading slightly higher late last night.  -- FOMC Minutes today. --
    • Dow +26, S&P +1, Nasdaq +9, Russell +8. (9:40 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, interest rates, the Global Economy, any political drama.
  • Watch the VIX - (CBOE Volatility Index) - The Vix is down under 20. Not a huge concern currently and getting the indication some risk is coming back on. Under 15 would be full risk on.

Today's Economic Calendar:

7:00 AM ET, The Mortgage Bankers Association (MBA) will release the results for the mortgage purchase applications index.

8:30 AM, Trade Balance report for February from the Census Bureau. The consensus is the trade deficit to be $70.3 billion. The U.S. trade deficit was at $68.2 billion in January.

2:00 PM, FOMC Minutes, Minutes Meeting of March 16-17, 2021


THE CHARTS:

(NOTE: Charts are a good guide, but news items can move the markets around.)

BRIEFING:

We got a day of consolidation that we were expecting. Another day or two of sideways or slight pullback is a good possibility. The Stochastics are still way overbought. Most technicals look good. We do mark a gap on the chart now. Sometimes they get filled, sometimes not.

Questions to ask oneself before the trade: How well is the economy is reopening? Virus news? Will treasury yields stay low/stabilize? Are we to high already?

Positives: We are above the 50-day moving average and well above the SPY 385 support level.

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:

  • The MACD is positive.
  • The Money Flow is very 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:

  • The Stochastics are overbought.
  • Possible market top or trading range in the future?
  • Thinking about the Fundamentals, Valuations, Virus news, the Economy, Jobs, 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 positive. (Bullish).
  • The Money Flow is very positive. (Bullish).

  • We have broken out to new all-time highs with the possibility of continuing higher.
  • Technically we are looking good!
  • With the back to back gap ups, we may have a pullback or rest period.
  • Some risks to the markets still remain. IF/When, will the Fed and stimulus sugar run out?

  • 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, be certain of your trades! *

INDICATORS:

The MACD is positive. The Stochastics are overbought. The Money Flow is very positive.

MA +/- (slope): The 50-day MA (387.88)(+0.49) and the 200-day MA (353.14)(+0.50)

The 8-month chart (below).

We are above the SPY 385 support level and making new highs.

The market continues to climb in an impressive up-channel.


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

  • Current trading favorites: AUPH - Aurinia Pharma (Lupus drug has been FDA approved!), EPZM - Epizyme, EXEL - Exelixis, HZNP - Horizon Therapeutics (A big winner for us last year), IOVA - Iovance (Dropped from 50 to low 30s, good time to buy), 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: IMGN, 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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