Pandas Weekly Newsletter 2/12
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
$SPX was filled with volatility and basing within the prior weeks price action. Bulls weren’t able to continue the breakout over 4200 but managed to defend a larger support level near 4050. This week is all about CPI on Tuesday and the 100pt implied move to follow. The market is conveniently located right in the middle of two very important technical levels. About 100pts to the downside would backtest the large weekly breakout we had a few weeks ago and 100pts to the upside sets up follow through over the prior peak of this most recent rally.
Economic Calendar & Earnings
source: (investing.com)
Notable Earnings: SHOP 0.00%↑ DKNG 0.00%↑ ABNB 0.00%↑ TWLO 0.00%↑
source: earningswhispers.com
Near Term Outlook & Trade Plan
SPX lost near term trend on the hourly that saw dips bought for consecutive weeks. We finally got a decent flush under 4100 before bouncing into the close on Friday. A reclaim of 4100 early this week would be bullish near term but with CPI on Tuesday, we anticipate trickier price action until after the report is out of the way. There is a 100pt implied move.
SPX 4100 targets 4123, 4142
SPX 4052-4100 = chop zone
SPX 4052 targets 4036, 4015
Pandas Weekly Watchlist
Our Favorite Trade Setup - BA over 215.77
Contract: BA 2/17 217.5c
Targets: 219, 223, 227
Stop: 214.50
Notes: BA has consolidated between 204 and 215 for over a month now. A break over 215.77 sets up a move to 219-223 next.
Join our Discord!
We provide live commentary, trade alerts, education, and more every day in our discord room. Watch the video below to see inside our room before you consider joining! Join anytime here: https://discord.gg/4CXuRRzwHU