Pandas Weekly Newsletter 1/29
Every week we review everything you need to know about the stock market for the week ahead as an active or passive trader.
Market Big Picture & Long-Term Technicals
Last week can be summed up in 2 words, “weekly breakout”. We’ve seen the dip bought consistently the past few weeks for the first time in nearly a year with a $VIX below 20 and the market close above it’s major trendline resistance for the first time.
It’s only fitting that this comes just a week before FOMC and big tech earnings to follow on Thursday. There is about a 70pt implied move for FOMC and then AAPL AMZN GOOGL earnings to follow on Thursday. This week is setting up to be a noisy one… Our big picture view of the market is bullish until price gives us a reason not to be. Following a strong weekly breakout, we want to see if price can defend 4000-3900 to the downside and/or continue to our next big picture targets of 4157, 4200, 4280. It’s possible we look back on this week and see a large weekly consolidation candle. As always though, we will react to what we get and trade accordingly.
Economic Calendar & Earnings
source: (investing.com)
Notable Earnings: XOM 0.00%↑ CAT 0.00%↑ AMD 0.00%↑ META 0.00%↑ GOOGL 0.00%↑ AMZN 0.00%↑ AAPL 0.00%↑ QCOM 0.00%↑ SBUX 0.00%↑
source: earningswhispers.com
Near Term Outlook & Trade Plan
Last week we saw the market hold dips and establish a clear change in character. Nearly every day of the week the market dipped and got bought up to new highs into the close. This included a larger gap down on Wednesday that back tested 3950 and then closed on the highs reclaiming 4000. While we have a very busy week with FOMC and large earnings, if this trend continues we are setup for continued bullish price action.
SPX 4100 targets 4118, 4157
SPX 4038-4100 = chop zone
SPX 4038 targets 4015, 4000
Pandas Weekly Watchlist
Our Favorite Trade Setup - BA over 214.92
Contract: BA 2/3 217.5c
Targets: 216.64, 220, 223.02
Stop: 212.14
Notes: BA has a lot of consolidation in this range between 204.82 and 214.92 and it seems a bigger move is imminent. A breakthrough the upside level can take us to the 223 level. Puts can also work on this setup if 204.82 fails and I’ll be looking at the 202.5p for this week.
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