The overall market is returning to big levels, shaking off the recent bearish pressure. This week we have earnings reports that could present profitable trades based on the news released. Some big names we’re keeping an eye on are Netflix set to report after the bell on Tuesday, ASML before the open on Wednesday, and TSLA after the close on Wednesday, along with some other names.
To continue our conversation from last time, the market was and still is at a pivotal level as volatility remains high. The S&P 500 (ES) formed a downside trendline that was met by an upside trendline last week. It finally broke through the 50 simple moving average (SMA) at $4,431 and pushed toward the inflection zone near $4,475.
This marks step two of the bulls’ run toward all-time highs. If the ES can clear the $4,500 range, look for a push to new all-time highs.
This is also a level where we could see the market fail again, so be wary.
Here is our focused list:
GOOGL — Continues to be the strongest technology stock. It dipped to the daily Ichimoku Cloud for an awesome dip buy last week and is starting to fire a daily squeeze. Watch the 1-hour squeeze that is beginning to fire to see if GOOGL can carry its momentum for technology higher. If GOOGL can hold $2,846, look for a push to $2,870 toward $2,900.
ROKU — Exploded on Monday and broke through the downside trending wedge. Closed above the 50 SMA at $337 on Monday and is starting to fire a daily squeeze. If ROKU can clear $347, look to take it up by increments of 10 toward $350, $360, and $370.
SQ — Had both a downside and upside gap to fill. On Monday SQ filled the downside gap and kissed the upside gap with the 2-hour squeeze stuck at the gap fill level. Focus on $251.34 and $250.70 to see if SQ can hold and fill that gap, pushing SQ back to its 50 SMA at $256 with a potential move to $260.
AFRM — Honey badger. Opened at lows on Monday and exploded to settle at a new all-time high of $160. Ideally look for AFRM to retest the prior all-time high at $153 for a dip buy up to $170.
Looking forward to seeing those of you signed up for the Power in Maximizing Short-Term Moves webinar on Wednesday, October 20th at 7:00pm CT.
Stay Focused!