Month: July 2021

This week was all about technology earnings, and Amazon (AMZN) was the story of the week, gapping down almost 7% at the open this morning after announcing Thursday evening what were (apparently) “unsatisfactory” earnings. 

Despite the AMZN puke, indexes held up incredibly well today as both the ES (S&P 500) and NQ (Nasdaq) continued to hold structure in a bullish daily squeeze (see charts below). At this point, we will be focusing on these daily squeezes to serve as our compass for the next potential move. While there is the possibility the upward trend continues into next week, we are also taking into consideration the potential that the market may need to “cool down” and trade sideways for a bit. With that being said, we will be patient and give any potential trades moving forward ample time to work out.

 

 

 

In terms of where the big potential play may be in the coming weeks, we are still huge fans of the chipmakers (semiconductors) here. SMH (semiconductor exchange traded fund, or ETF) looks poised to fire its daily squeeze to the upside which fairs well for our positions in my Compounding Growth Technique Mastery in AVGO (Broadcom) and NVDA (Nvidia) (see charts below).

While technology has run the show as of late, is it the semiconductor’s time-to-shine? We think so! And while we think the group is getting ready for a solid move, we suggest, as always, focusing on the stocks within the group that offer the best setups and entries. AVGO, NVDA, and AMAT (Applied Materials) are our favorites here, while AMD (American Tower Corp) and QCOM (Qualcomm) have quickly become too extended for us to chase an entry here.

 

 

 

TSLA (Tesla) is another name of interest for us here as well, and we’re looking to see if the weekly squeeze is (finally) ready to bust a move (see chart below). Though the weekly chart looks solid, the daily chart isn’t the cleanest setup yet. There are a few things you want to take into consideration if you’re going to pursue a trade here, such as the put credit spread we opened yesterday in the Compounding Growth Technique Mastery program.

 

 

In this Sunday’s premium video, we’ll go into details surrounding technology, the chipmakers (semiconductors), Tesla, and a few other spots that could offer opportunity in August. So keep an eye on your inbox this weekend for the video!

Stay Focused!

 

 

We’re finally wrapping up the biggest week of earnings with companies like Apple, Tesla, Facebook, and Google all reporting. Tonight brings another round of releases with the main focus being Amazon (AMZN).

The market has been digesting these earnings, rallying hard in the beginning of the week and now just chopping sideways. Last time we traded at these all-time highs we had the same pattern of a 4-hour squeeze. We saw the market rally and consolidate, just like we’ve seen this week.

Depending on a strong or weak AMZN report tonight, the market could rally higher, drop lower, or continue to squeeze overnight. Keep an eye on this 4-hour squeeze to gauge which direction we’ll be moving next. The 4-hour squeeze is a great reminder to practice patience as we wait for the next great move and for the squeeze to explode. The market is currently trending upward, so let’s see if the squeeze continues to fire overnight or if we head back down. 

Pay attention to the squeezes and how Amazon’s earnings shape the market. If the report drops technology, the ES (S&P 500) would most likely also fall. The news could send us higher or simply do nothing, sending the market back into squeezes. All these are possible scenarios, but let’s use the squeeze and Amazon’s report to help guide us in the right direction. Watch the video above for the next levels to focus on based on what moves end up happening tomorrow and into next week.

Stay Focused!

 

 

The Ichimoku Cloud has been one of the most reliable and powerful indicators we’ve used over the course of our trading career. It is a common indicator found on most trading platforms and represents the grey “cloud” that combines multiple points of data to give a current and future projection of support and resistance. The reason this is our favorite indicator is that it isn’t a lagging indicator, meaning that it gives a forward projection and doesn’t update with price. In this video, I’ll introduce and breakdown the Ichimoku Cloud in detail, so that you can add this indicator to your trading arsenal.

If you’re interested in learning more about how I use the Ichimoku Cloud specifically for my Scalping strategy, check out my complete 4-hour training class here.

Stay Focused!

 

 

All eyes are on technology this coming week as the leaders of this recent rally are all set to announce quarterly earnings.

With the markets already extended, disappointing earnings could bring an “end to the party” for technology stocks. Vice-versa, a positive reaction to the announcements could send these stocks even higher.

We are patiently waiting for the next pullback in the markets before we get aggressive on new high-probability long positions. The semiconductor sector is our favorite spot in the market right now, and we’ll be continuing to pursue trades for the bullish weekly squeeze. Check out the video above for our attack plan ahead of earnings this week. 

Stay Focused!

 

Another crazy week for the markets is in the books and both the Nasdaq (NQ) and S&P 500 (ES) closed at brand new all-time highs (ATH) today – and the Dow hit 35,000 for the first time ever. While the market looks incredibly bullish from a chart perspective, this recent rush higher has masked a lot of the selling pressure bubbling below the surface.

The small caps, Russell 2000 Index (IWM), and sectors such as energy and transports continue to break down and lose structure. At this point, this entire market is being driven by big technology stocks, rather than finding strength across the board.

 

 

 

Next week should be an incredibly important one for the market as technology stocks are set to start announcing quarterly earnings. Will the market continue to rally after earnings? Or, is this nothing but a huge push into the announcements before we finally top out?

How high this goes is the big question at this point. While we have no plans on shorting technology or the S&P 500 (SPY), we certainly don’t have any interest in taking large risks with the market so extended. Therefore, we will be going into next week waiting for a pullback to offer fresh potential for high-probability entry opportunities.

The semiconductors continue to look phenomenal here with a beautiful weekly and daily squeeze setting up (see chart below). We already have some exposure in the semiconductors with our position in AVGO and we will be covering a few more that we are keeping an eye on in this Sunday’s video.

 

 

This is a fast-moving market and with that comes the need to stick to your rules now more than ever. This week we opened a position in NET and took profits two days later as it ran through the 2+ average true range (ATR). In this wild market, could it have continued to rally? Absolutely! With the markets extended, is now a good time to get greedy? Absolutely not!

 

 

Focus on clean setups, stick to your entry and exit rules, and scale down in position size until the next meaningful dip. That’s our plan for now! Keep an eye out for Sunday’s e-letter, where we’ll get into the details of the next few setups we’re looking to trade.

Stay Focused!

 

 

After an anticipated drop and quick pop this week, now it’s time to observe what is setting up next. Whenever we approach the 2 to 3 average true range (ATR) bands, we can expect a pullback. Every downside move is simply just a dip buy, until proven otherwise. We’ve had diminished volume over the past few days, so the markets aren’t completely out of trouble, but where do we go from here? 

To gauge where we are heading tomorrow, keep a close eye on the 4-hour Ichimoku Cloud and the hourly squeeze forming on the overall market – in the S&P 500 (ES). Use these squeezes to your advantage, so you can stay out of trouble on Friday, especially with big earnings coming up next week. As long as we hold this key zone at the point of control (POC) at 4,341, we will remain bullish. If the squeeze fires to the downside, we will be looking for a push back to the daily mean at 4,313. 

Be patient and stay disciplined to end the week. We’ve seen a great drop, a great pop, and so we want to stay out of trouble as the market moves sideways and looks for direction. Watch the video above to see where I think the markets are heading next. 

Stay Focused!

 

 

We are finally seeing that much needed pullback that we’ve been patiently waiting for! We’re nearing the 2-3 average true range (ATR) Keltner Channel bands, which signals that the market is extended and close to a healthy pullback. That is what we are seeing play out now. If you’ve been listening and following along with Focused Trades, this reversion shouldn’t be much of a surprise. Pay close attention to the Nasdaq as the technology leader should drive the market higher.

Here is our Focused List:

NVDA: Pay attention to the price action after the stock splits into four on Tuesday to a $187.75 stock price. Will we get a big rip, a big drop, or will it stay neutral?

ZM: Finally breaking above the daily Ichimoku Cloud and experiencing its first healthy pullback. Possibility here for a dip buy. Looking for a pop back up to the daily mean at $370.

ROKU: One of the names that closed green and a name to keep an eye on for a move higher. If it breaks the 30-minute Ichimoku Cloud, we can expect a reversal. Looking for it to hold above $410 and above the 30-minute Ichimoku Cloud. Key levels at $420 to $425.

TSLA: If it breaks above the 30-minute Ichimoku Cloud, we could see a rally.

FB: Sitting under the 30-minute Ichimoku Cloud, looking for it to rally above.

Stay Focused!