Earnings, Interest Rate Decision: Be sure you read my previous newsletter. 

• Anticipated earnings for this week
• FOMC rate decision on Wednesday
• Key levels to take note of.

Key News:

1. Walmart Cuts Profit Outlook read more here 

2. Paul Krugman admits he was wrong about inflation read more here
3. Jim Cramer’s week ahead read more here
4. Learn how to trade using Exponential Moving Average: read here

Here is a video walkthrough of the information on this watchlist

S&P 500, SPX 

SPX, weekly timeframe shows us a change in momentum from bearish to neutral. 

• The weekly candle closed around $3,965.1 (could go either way) 
• The weekly candle closed above bove the 5 and 9-day exponential moving averages ( bullish ) 
• The weekly candle closed above the upper downtrend line (bullish) 
• The weekly candle closed below the 20-day exponential moving averages (bearish) 

SPX, weekly candle updated with Monday’s price action

• Small range so far low on Monday is $3,943 and $3,975, $30 range.
• SPX cash closing price was just above the $3,965 price level, which also happens to be between the 5-day and 9-day EMAs.
• We will need a strong close below or above these moving averages before we decide to pull the trigger on anything.

SPX 4hour time frame shows signs of a pullback, a rally, and another sell-off. 

• I used the 14-day and 30-day simple moving average for the below chart. 14 day is blue, and 30 day is orange. 
• As long as SPX stays below the $3,965 level, we can anticipate sellers to be in control. 
• Ideally, on this time frame – went to target the 14-day SMA and then the 30-day SMA, below $3,965, target $3,902. 
• Depending on the strength of this move or even so when this moves happens ( keep in mind big company earnings are being reported this week and FOMC), we can bounce around $3,902 back up towards $3,965. 
• Below the 14-day SMA, we will continue to sell off, $3,860 is possible this week. 

$SPX 4hour time frame using 5 day / 9 day / 20 day EMA

• The current price is between our 5 day exponential moving average ( purple ) and 9 day exponential moving average.
• Look for a clear entry to enter a short: If the price on a 5 min or a 15 minute time frame closes below $3,965 and below both the 5 day and 9 day EMA, the target price would be around $3,916 / $3,900.
• Look for a clear entry to enter a short: If the price on a 5 min or a 15 minute time frame closes above $3,965 and above both the 5 day and 9 day EMA, the target price would be around $3,970.

Nvida, $NVDA

I need you guys to read on my previous post above $NVDA – click here.  

 

• I am personally looking to short NVDA once again after seeing price action reject the $181.58 level. 
• I see a potential head and shoulder pattern forming on the 2hour and 4-hour time frames. (see below) 
• Ideally, I would like to get into puts once the price action is below $171.38. 
• The entry for this trade will trigger when using the 5 min or the 15 min timeframe, price closes below the 5-day and 9-day EMAs. 
• I like the $165 puts for July 29th, or the $160 puts for August 5th. 
• Aim for 20 or 30 percent ROI 

NVDA, here is the head and shoulder I am seeing. 

Read more on how to trade this pattern here: The Best Chart Patterns for Trading

Snowflake, $SNOW

• Sitting on $140 support level. 
• 5 / 9 / 20-day exponential moving averages are bearish. 
• Price is below all moving averages bearish. 
• I would be looking to enter a short position if the price remains below the $140 price level, and remember to use your 5 min / 15 min time frame to find the entry. 
• I like the $130 / $135 puts for this week and the $130 puts for next week.

Tesla $TSLA 

After a good earnings report, Tesla’s trading range increases yet again! Get ready for some crazy short and long trades.

TSLA, weekly candle – we can either jump up towards $900 or come back down to $763 – gotta love it.

• The weekly candle closed below $837 (bearish). We could see this turn out to be a double top and cause the stock price to return to $800.
• I have the range between $820 and $816 to be considered “premium burn” – where price action will just be consolidating.
• I would personally wait for a clear entry to short: Price closing below $800 and below the 5-day and 9-day EMA on a 5 min or a 15 min candle and target price would be $790 / $780.
• I would personally wait for a clear entry to go long: Price action closing above the $820 price level and the 5-day and 9-day EMA on a 5 min candle. The target price will be $832 /

 

Tesla, $TSLA 4hour time frame

• If the stock price falls below $800, we can see the price coming back to $763 / $753.

 

 

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