Pandas Weekly Newsletter 7/16

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 we saw a strong breakout and continuation higher on the S&P 500 ($SPX SPY 0.00%↑ ). In last weeks newsletter we discussed the importance of CPI and PPI data. Prior to last week we have seen strength in riskier assets, particularly mid caps. This hinted at a possible cooler CPI print which could signal the FED taking a longer pace to hike. This was confirmed and the market was led higher with a “risk on” appetite in tech and high beta names to close out the week.

From a technical perspective, our main target at 4495 was met and briefly overthrew to 4530, just shy of the 4537 level. We closed the week right at 4500 and the week ahead starts earnings season. If the market fails to hold 4500 we are in for some digestion in between 4400-4500. Continuation over last weeks highs sets up 4600.

Important Reminder: Remember to take it one day at a time as a day trader. We react to what the market gives us and don’t allow a bias to get in the way of trading price. Anything is possible.

Economic Calendar & Earnings

source: (investing.com)

Notable Earnings: BAC 0.00%↑ MS 0.00%↑ GS 0.00%↑ TSLA 0.00%↑ NFLX 0.00%↑ UAL 0.00%↑ JNJ 0.00%↑ AAL 0.00%↑ ISRG 0.00%↑ AXP 0.00%↑

Near Term Outlook & Trade Plan

SPX 4527 targets 4537, 4595

SPX 4495 - 4527 = chop zone

SPX 4495 targets 4467, 4448

Pandas Weekly Watchlist

Our Favorite Trade Setup - AAPL over 191.70

Contract: AAPL 7/21 195c

Targets: 192.75, 194.38, 195.95

Stop: 189.60 using 15m candle

Notes: Dipped after making new ATHs at 194.48 and consolidated. Now its starting to look set up for another leg up if it can get through the 191.70 spot. If it gets through this spot then the target will be a new ATH at 195.95. Under 186.99 and we can start to see AAPL break down.

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