After a choppy week of options expiration (OPEX) this week, a few catalysts are to note.
Federal Reserve Chairman Jerome Powell is giving welcoming remarks on Tuesday afternoon. This pre-recorded event will likely not be a significant market mover, but it is worth keeping an eye on.
More importantly, the Federal Open Market Committee (FOMC) minutes will be released on Wednesday. This is a chance for the algorithm to react to the minutes without having Powell speak afterward.
We’re focusing on two names recording earnings this week. Both NVDA and SNOW will report earnings on Wednesday night.
As for the overall market, we’re focusing on similar key zones.
As long as the S&P 500 (/ES) is above $3,855 (the low from two weeks ago), the market could work its way back toward liquidity. Point of control (POC) is near $4,013, and the daily mean (21 EMA) is above near $4,070.
If /ES breaks below $3,855, the market will become extremely vulnerable. We’ll look for it to drop to last week’s low at $3,807.50 and potentially hit $3,796 and $3,760.
In the video above, we’ll discuss the key zones on the major indexes and share charts with our favorite setups.
Here is our focused list:
NVDA — Be patient heading into earnings. See if it can work its way back to liquidity at POC near $174. We’ll look to trade NVDA off the low at $156.
SHOP — There are three main levels of liquidity that we are eyeing: the current POC at $360, a prior POC at $340, and another prior POC at $401. We’re planning on buying SHOP and playing it back up to the range from $383 to $400 before it potentially reverses.
ROKU — With any dips, look to play ROKU up to POC and the daily mean near $96. Above this, we’ll look for $103 to $106.
Stay Focused!