Pandas Weekly Newsletter 2/20
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
Over the last couple of weeks we discussed 4100 being a pivot point for the market. After multiple defenses here, we finally saw the market sell into our 4050 target into the end of the week. The big picture continues to be the same, as long as larger support holds over 3950-4014, we favor a breakout to 4280-4325. With that being said, traders have to remain very tactical while the market continues to base out of the large weekly breakout we saw at the end of January.
Economic Calendar & Earnings
source: (investing.com)
Notable Earnings: WMT 0.00%↑ HD 0.00%↑ COIN 0.00%↑ NVDA 0.00%↑ SQ 0.00%↑ ETSY 0.00%↑ MRNA 0.00%↑
source: earningswhispers.com
Near Term Outlook & Trade Plan
Last week was full of trappy / volatile action after finally leading to a sell off into 4050 support. As long as this holds, we like the upside on a 4100 recapture. Below 4050 sets up more downside targeting larger support at 4014. If we see 4050 fail and 4037 hold, bulls would want a fast reclaim over 4050 to trap shorts and rally to 4100.
SPX 4100 targets 4123, 4142
SPX 4050-4100 = chop zone
SPX 4050 targets 4037, 4014
Pandas Weekly Watchlist
Our Favorite Trade Setup - META over 180
Contract: META 2/24
Targets: 183.75, 192.72, 197.16
Stop: 177.30
Notes: META started to fade into the post earnings gap last week under 180. With the news over the weekend, we’re watching for the 180 level to reclaim and set up a run back to 197. If the reaction is negative, we’ll watch puts below 169 targeting 162.
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