El Tigre Watchlist, Wednesday July 20th, 2022

El Tigre Watchlist, Wednesday, July 20th, 202

$SPY ladies and gentlement – I present you a “rip your face off” green hammer. 

The question is not “is $SPY going to hit $395 tomorrow”, but rather “once $SPY hits $395 tomorrow, are we going to stay above, or are we going to sell off”

$SPY chart is actually very bullish as we are breaking out of the current downtrend channel that we are now in. 

Ideally going into tomorrow, we need to hold above $395 and we will be targeting $397 / 400 / 402. 

I am already in the $400 calls for 07/22/2022. If not in those, I would consider getting them or the ones for Monday. 

An ideal entry would be:

  • Use your 5-minute or 15-minute timeframe, and wait for price action to close above $392 / 395 while the price is above the 5-day and the 9-day EMA.
  • Use a close below the EMAs as a stop loss.

Amazon, $AMZN breaking out of the Descending Triangle for the upside.

Normally the Descending Triangle is used to find an entry for some downside action, however, I believe all chart patterns can be used both upside and downside.

In the case of Amazon stock price breaking above our famous $115 price level, I see an opportunity for more upside to come. Potentially, we want to target $121 / $124

The below includes the 14-day simple moving average (blue line) and the 30-day simple moving average (orange line),  which are now showing 1) the 14-day is now above the 30-day and 2) Price action is bouncing above the moving averages.

I personally like to buy the $120 or the $122 calls for Friday, July 22nd, or the $125 calls for July 29th 

Nvidia, NVDA

  • Tomorrow, the Senate is expected to vote on the CHIPS Act, which stands to benefit Nvidia (NVDA) and other U.S. chipmakers.
  • Speaker of the House Nancy Pelosi’s husband, Paul Pelosi, purchased up to $5 million in NVDA stock options.
  • Nvidia shares are up 5% today.
  • As early as tomorrow, senators are expected to convene to vote on a highly publicized spending bill. It would earmark $52 billion in support of domestic semiconductor production. This, naturally, would benefit U.S. microchip makers like Nvidia.

Looking at the chart,  Nvidia (NVDA) is pushing above the falling wedge pattern on the bullish news. 

As long the price remains above the $170 price level, we can anticipate for the price to continue to move higher. I would not be surprised if we ended up going up towards $183.51 with this bullish set up and pending good news. 

Keeping it simple, as long as the price remains above the $170 price level, we can see the price move to $173.72 / 175 / 182 

Apple, Appl

The real battle starts and continues here at the $152 price level. 

Earlier in the week, news about Apple slowing down hiring and slowing spending on certain teams came out and caused the stock to retrace back down. 

With Netflix, NFLX recently reporting less than expected bad earnings, this could potentially play as a catalyst for the overall market, including Apple, to move higher. 

 

I also could not help but to draw an inverse head and shoulder on here.