Pandas Weekly Newsletter 9/1/24
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 SPY 0.00%↑ spent last week basing and resetting in a range near the highs. Price digests either through time in a range or through sharp pullbacks. We’ve seen price reset through a 90pt range for about 2 weeks. On Friday we saw end of month flow create volatility into the close pushing price back to the highs. From a technical standpoint, the market looks setup well to make a strong push out of its range. There are two key setups we’re watching for as we are anticipating a 100+ move.
All time high breakout targeting 5700
Failed breakout of the highs targeting 5500
Now that price has spent enough time consolidating, we expect to see a trend move next. With breakouts, it’s important to watch the dips on a lower time frame following the breakout to see if they hold and are shallow. Sharp dips that trap key levels are a stronger signal for reversals and opposite to the breakout, you’d want to see subsequent bounces on a lower time frame weak. These small cues can help determine the following trend.
Economic Calendar & Earnings
source: investing.com
Notable Earnings: ZS 0.00%↑ GTLB 0.00%↑ ASAN 0.00%↑ DKS 0.00%↑ DLTR 0.00%↑ AI 0.00%↑ NIO 0.00%↑ AVGO 0.00%↑ PATH 0.00%↑ DOCU 0.00%↑
Near Term Outlook & Trade Plan
SPX > 5651 targets 5669
SPX 5562 - 5651 = chop zone
SPX < 5562 targets 5505
Pandas Weekly Watchlist
Our Favorite Trade Setup - NVDA under 116.71
Contract: NVDA 9/6 115p
Levels: 115, 109.88, 106.48
Stop: 119.40
Notes: While $SPY closed near ATHs we saw $NVDA start to struggle a bit. Coming fresh off the earnings report it has some support around 117.46. If this breaks we can see a drop to 115, 109.88 next. I'll be watching Thursdays lows of 116.71 for a bit more confirmation of a break to the downside.
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