El Tigre Watchlist, Tuesday July 19th, 2022

Bank and Tech companies kick off earning season for Quarter 2 of 2022.

Apple, $AAPL (daily) Rejecting the $152 level, falling out of a rising wedge. Below $147, we can see $141 come very quick. I like $145puts for this week or $140 for next week / two weeks out. This rejection of the $152 level came shortly after Apple reported they will be slowing hiring going into 2023 and reducing spending on certain teams.  Amazon $AMZN Amazon closed below the $115 level and has now created a multi-top around this price. As long as we remain below this $115 price level, I anticipate for the price to keep pulling down. I would like to see price come down towards $110 / $107 / $105. Amazon, AMZN (weekly candle) Amazon’s weekly candle tells how much resistance is sitting at this $115 price level.

Our 9-day exponential moving average (EMA) is sitting at $115.62, and the 9 day EMA is sitting at $113.64 as well we have a fibonnic resistance level at $114.93. So how should you trade this Amazon setup? 

    1. Use either the 5 min or the 15 min time frame to get your entry. 
    2. I would preferably like for a 5 min or 15 min candle to close below the 9 day or the 5 day EMA. The price should be around $114. 
    3. I would personally look to sell my puts around $112 then $110 and then $107. 
    4. Here is video on how to trade moving averages if you need a bit of refresher : Simple Moving Average

Nvidia, NVDA (4-hour timeframe) Nvdia, NVDA (daily timeframe) Nvidia $NVDA (daily)  the daily time frame is showing a descending triangle with more downside to come if we can hold below $158.

Keeping things simple, I went ahead and connected prior highs with prior highs, and prior lows with prior lows. This chart shows a trend of lower highs and lower lows leading to a Descending Triangle. Trading this pattern is rather easy if you follow these steps.

    1. Size in accordingly.
      • We do not want to open a full position right away since we are currently in the middle of the upper resistance, $158.69, and the lower support level, $151.03.
      • Personally, I like to do a 33/33/33 entry, meaning if I want to buy 33 contracts total, I would purchase 11 for around $158 and wait for price action to do its thing.
      • You would look to buy another 11 contracts if we price were to move up towards $160 / 162  and reject. The rejection of this level is critical. If we do not reject, cut losses and move on. If we do reject, buy another 11 contracts.
      • We would love to see price action sell off down into $151.
    2. Use either the exponential moving averages or the simple moving averages to follow the trend.
    3. Lock in profits and reduce risk whenever possible.

Tesla, TSLA daily time frame

Tesla, TSLA daily time frame, no moving averages

Tesla $TSLA (weekly) a bear pennant is being formed and continuation towards the downside seems highly likely. 

If you’re unfamiliar with how to trade bear pennant, is very similar to a bear flag.

To kick off this week, we sold off below the $732 level and are now trading at around $720.

Main levels to focus on is $700, $702, $708, $720, and $732 for now. 

The range is between $708 and $720 – I will consider this the premium burn range. This will be where buyers and sellers are fighting to pick the direction we head for the day.

Ideally, I would like to be short on Tesla if price action can stay below $732 with a $720 breakdown being what we need to see a real sell-off. 

  1. Use your 5min or 15 min time frame and wait for a candle to close below 732 and below your 5-day and 9-day ema.
  2. I would get contracts for this week, I would not want to pay more than $700 per contract.
  3. The first price target would be $724 then $720 and then $708.

Above $732, I would be bullish and can see the price push higher to $745 / $750.