El Tigre Newsletter, Week of August 1st, 2022

Most Anticipated Earnings

After last week’s earnings report, I do not see any companies reporting earnings significantly impacting the overall market or investor outlook. These companies’ earnings are more so just for fun.
You can review last week’s earnings here:

You can view last week’s newsletter and see how the evolution of the thought process unfolded: 

Economic Agenda

You can find the latest releases here:  Trading Economics

Time to dig into some charts

$SPY, $SPX The SPDR S&P 500

On the daily time frame, $SPY chart is breaking out of the falling wedge pattern and moving closer to the $415 price level.

One nearly every timeframe, we have a strong case for the bulls. However, the $415 price level could appear to be a challenge.

We will need volume and momentum to help us get above otherwise, I can see price consolidating between $415 and $409

$SPY monthly timeframe shows price action sitting on top of the 30-day simple moving average, which historically acted as a support level, and the price rallied back up.

$SPY weekly time frame shows the 30-day moving average is sitting at $421.13, this will be the next price target once we get above $415.

$SPY daily time frame with our Exponential Moving Averages shows more upside to come

$GS Goldman Sachs

Goldman Sachs’s daily timeframe shows a breakout of the falling wedge with much room for more upside.

I will not draw all the patterns here because there are so many; however, you can draw them on your chart.

Goldman has the following chart patterns:

  • Double Bottom
  • Falling Wedge
  • Bull flag
  • Inverse head and shoulder

Using our exponential moving average strategy, we see that our buying opportunity was presented last week around the $322 price level.

We will need price action to remain above the $328 / $330 for our next leg up.

Ideally, I want us to be targeting $345.88. Remember, Rome was not built in a single day, and you should not be targeting price action to move from $330 to $345 in a single day.

How to trade Goldman Sach’s chart

  1. Use your 5 min or 15 min time frame.
  2. Turn on your exponential moving averages; I use the 5-day, 9-day, and 20-day moving averages. Purple, Blue, and yellow lines, respectively.
  3. You wait for the price to either give you a bullish entry or a bearish entry;
    • Bullish: the price is above both the 5-day and the 9-day EMA.
    • Bearish: the price is below both the 5-day and the 9-day EMA.
  4. I like the $340 or the $345 calls for this week, as well I like the $350 calls for next week
  5. Scalp 20 – 30% return on investment, keep loss small.

$NVDA breaking out the falling wedge and consolidating between $183 and $170 

As long as we hold above $180, we should be bullish on $NVDA. Once we get above the $184/ $185 resistance, I don’t really see anything holding us back from hitting $196.33.