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.
Walmart Cuts Profit Outlook read more here
- Paul Krugman admits he was wrong about inflation read more here
- Jim Cramer’s week ahead read more here
- 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.
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
- 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.
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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