Pandas Weekly Newsletter 1/5/25
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
SPY 0.00%↑ / SPX closed at 5942.46 on Friday. We managed to see price defend 5832 and put in a defined bottom. This was the test / shakeout we needed to kickstart a rally in the market. Friday led a strong bounce back into range and if we can see continuation this week, 6000+ is set up next. The market behaved similarly last year with a bigger bounce coming the week after the new year. On the flip side, if this 5832 level is tested again, bulls wont be so lucky. It will likely lead to a very strong sell into the 5700s. The washout on Thursday to 5832 was a temporary pain trade with all the anticipation being to the upside for new year flow. Now that it held again, it has become weaker if retested. This presents a clear spot to get short in the market should we break that level from here as confidence will drop for the upside quickly in the near term.
Economic Calendar & Earnings
source: investing.com
Notable Earnings: TLRY 0.00%↑ DAL 0.00%↑ STZ 0.00%↑ WBA 0.00%↑
Near Term Outlook & Trade Plan
SPX > 5936 targets 6008
SPX 5900 - 5936 = chop zone
SPX < 5900 targets 5832
Pandas Weekly Watchlist
Our Favorite Trade Setup - NVDA over 144.90
Contract: NVDA 1/10 148c
Levels: 146.48, 149.77, 152.88
Stop: 142
Notes: Recent breakout from a wedge followed by some consolidation and then continuing a move higher on Friday. Sets this one up really nicely as a continuation play. We’re already in some calls on this name so this weeks play will be a roll up for us to just try and capture more of this move. Back over 146.48 and it looks ready to make a move towards ATHs.
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Want to review our performance first? Here was last weeks performance along with a link to the entire years worth of alert data.
