Month: August 2021

 

We saw multiple squeezes form last week as the major indices maintained their solid structure. The big mover last week was the financial sector (XLF) as it built up energy the last few months and finally made a big move into the +2 average true range (ATR) on both the daily and weekly charts. We took advantage of the hourly, daily, and weekly squeezes in Goldman Sachs (GS) in the Compounding Growth Mastery and bought back our put credit spread for 45% of max profit. There is potential for continuation higher, but we will be waiting for a pullback before making our next move.

The Industrial sector (XLI) is also printing a mix of squeezes on the daily, 3-day, and weekly charts. As long as we hold this structure into September and October we could see prices move higher. 

Semiconductors (SMH) have a beautiful daily, 3-day, and weekly squeeze firing long. Wait for a move to the +2 average true range (ATR) and buy the dip before adding more exposure.

Technology (NQ) has a bullish daily squeeze with a positive histogram and brand new 4-hour squeeze. Look for the squeeze to ultimately fire long and push technology stocks higher. 

Watch the video above for a full update on our current open positions and where to buy the dips and add to your positions. Industrials, financials, technology, and semiconductors are all good-looking pockets in the market. As long as the daily squeezes in the indexes hold structure, look for them to fire to the upside. 

Stay Focused!

 

 

This was a relatively uneventful week in the markets as the S&P 500 (ES) and Nasdaq (NQ) generally traded sideways. While this choppiness could feel somewhat boring, the daily squeezes in the indexes still have a bullish structure to them. As long as both indices hold this structure, we will continue to be patient and look for long opportunities in this market. The trend is your friend… until the trend changes.

 

 

As for the market sectors where we are currently focusing, the semiconductors rose nicely this week but we think there is plenty of room to the upside. We are still long Broadcom (AVGO) and we nailed a trade on Nvidia (NVDA) for a quick profit this week. If we get any dip in the semiconductor group next week we will likely look to add more exposure in the chipmakers.

 

 

As for technology, should the group make another move to the upside we think Apple (AAPL) is poised to pop based on its bullish daily squeeze (chart below). Google (GOOGL), despite having no daily squeeze, offers a handful of bullish squeezes on the lower time frames that we will be watching closely. 

 

 

 

After weeks of consolidation the financial sector finally woke up this afternoon. The weekly squeeze looks incredibly bullish and could offer the potential for weeks of solid momentum. However, after today’s big move we suggest waiting for the next pull back before diving in. In the Compounding Growth Mastery we sold a put credit spread on Goldman Sachs (GS) yesterday afternoon and bought it back today for a nice profit as it quickly ran into our target. We will happily look for another entry on the next dip.

 

 

The structure of the indexes continues to be solid. These are some pockets of the market that could offer great opportunities if the bullish nature of the market continues. There are a few additional stocks on our watchlist where we are looking to buy the dip and we will be covering those in detail in this Sunday’s watchlist video. Enjoy some relaxation this weekend because it’s back to the grind on Monday! We’ll talk to you on Sunday!

Stay Focused!

 

 

The main focus this week is on jobs. We had a slightly bearish ADP Employment report on Wednesday and now we’re waiting to see what Friday brings with the Nonfarm Payrolls report. This jobs report could be the catalyst that the market has been waiting for… 

The S&P 500 (ES) has not dropped lower or rallied higher, but it instead has been sitting in a 4-hour squeeze above the 4-hour Ichimoku Cloud. The market has the capability to break higher as momentum continues to build, but it needs a reason to pop. Could the jobs report cause the market to jump higher? Unless the ES breaks below $4,364, prices will likely continue to chop until the next rally higher. Be careful to not short this market and rather wait to see if we head higher. 

Today, we finally saw all three major indices join the rally party, settling up around the same percentage points (slightly over 0.5%). The Nasdaq (NQ) logged an all-time closing high and the Dow Jones (YM) finished the day in the green. The technology sector is still leading the market higher. As long as the NQ holds $15,134 and trades back through today’s all-time high at $15,166, there is plenty of momentum to explode higher and boost the market.

Watch the video above for our Focused List of setups that could continue to squeeze and fire higher. Be patient heading into Friday’s jobs report, manage your risk properly, and we’ll see if jobs can push the market higher. 

Stay Focused!

 

 

Let’s see what this fresh month of August brings after the market sold off last week to end July.

This week the focus is all about jobs. Keep a close eye on the ADP Employment report on Wednesday and the Non-Farm Payrolls report on Friday. Watch how the market acts leading into these two reports and how the market reacts if we receive two bullish reports.

Will the jobs report be a catalyst to the upside, downside, or is it simply just noise?

This week also leads us into earnings for our last few big names. The main focus on earnings is on individual stocks, specifically Alibaba set for Tuesday morning and Roku on Wednesday afternoon.

We are still using the same compass as last week and waiting to see what happens next as the overall market is still inside this 4-hour squeeze. Watch the video above for a full market breakdown on the three major indices, volatility, and a deeper analysis of our current focused list (check below).

Here is our focused list: 

NVDA – After the stock split, NVDA is retesting and holding its wedge at the 196 level. The 4-hour squeeze hasn’t fired yet, so let’s see if it can continue to hold. If it breaks through 200, look for 204 or 206.

GOOGL – Closed bullish near all-time highs despite technology’s red day on Monday. Watch the 2-hour Ichimoku Cloud. Key levels to keep an eye on: 2,770 calls for this week’s expiration and 2,750. Be patient and see what technology stocks do.

ROKU – After hitting an all-time high, there’s been some serious selling. See if earnings this week could push this to 500. Look for opportunities with lotto trades toward the 500 strike next week. Be patient and proceed with caution among earnings.

SQ – With the acquisition of Afterpay, Square ripped higher to all-time highs with huge amounts of volume. Weekly squeeze wants to fire, meaning it could break an all-time high. Went from 230 premarket to 283 on Monday, could move down or be so strong that it explodes higher to the 300 level.

TSLA – Starting to fire a daily squeeze and into a weekly squeeze to hit a target of 750. If it continues to hold the 709 to 700 zone and breaks 727, we could see the push toward 750.

Stay Focused!