Calls
Bulls in Control...For Now, How I Plan on TradingBy Yasin Ebrahim
Investing.com – The S&P 500 rebounded Tuesday, as investors took advantage beaten down travel-related stocks and financials following a rout the previous day.
The S&P 500 rose 1.5%, the Dow Jones Industrial Average gained 1.6%, or 550 points, the Nasdaq was up 1.6%.
The United States 10-Year yield rose above 1.2% after dropping to 1.14% earlier in the session, providing a much needed boost to financials, mostly bank stocks following Monday's selloff.
JPMorgan (NYSE:JPM), Goldman Sachs (NYSE:GS) and Bank of America (NYSE:BAC) rose more than 1%.
The selloff on Monday was largely attributed to fears that a resurgence in Covid-19 infections would stall the recovery. The delta variant is now estimated to make up 83% of all Covid-19 cases in the U.S., the director of the CDC said Tuesday.
Some on Wall Street suggest the economy has transitioned from a recovery stage to an expansion phase.
"The most visible signs of the transition have been the return of inflation-adjusted output in June to pre-pandemic levels; productivity-enhancing investment in high-tech equipment; broadening loan growth beyond consumers to businesses; and strong job gains as businesses gained renewed confidence," Wells Fargo (NYSE:WFC) said in a note.
Industrials were one of the biggest sector gainers, led by surge airline stocks including Southwest Airlines (NYSE:LUV), United Airlines (NASDAQ:UAL), American Airlines (NASDAQ:AAL), with the latter up 8%.
Energy also recovered some of its losses from a day earlier, up more than 1% amid a tentative rebound in oil prices as the delta wave threatens demand.
"Our bottom-up estimate of the impact that a Delta wave could have on global demand instead points to a potential 1 million-barrel-a-day hit for only a couple months, and even less if vaccines prove effect at lowering hospitalizations in DMs, the origin of most summer demand improvements," Goldman Sachs said.
Energy was given an added boost from a 3% surge in Halliburton (NYSE:HAL) as the oil services company reported results that topped market expectations.
Technology stocks also benefited from dip-buying, with Apple (NASDAQ:AAPL), in the ascendency, up more than 2%
UBS lifted its price target on Apple to $166 from $155, after raising estimates on tech giant's revenue and EPS for the third quarter to $74.7 billion and $1.01 from $71.3 billion and 95 cents, respectively.
Microsoft (NASDAQ:MSFT, Facebook (NASDAQ:FB), Google-parent Alphabet (NASDAQ:GOOGL), and Amazon.com (NASDAQ:AMZN) were higher.
International Business Machines (NYSE:IBM) rose 2% after its second-quarter results topped analysts estimates.
"We’re encouraged by momentum around our wider hybrid cloud thesis," Credit Suisse (SIX:CSGN) said in a note as it raised its price target on IBM to $167 from $165.
On the economic front, June housing starts rose 6.3% to 1.64 million, above the consensus. "Housing starts bounced unexpectedly in June but starts appear to be capped at this level, given labor and material shortages," Jefferies (NYSE:JEF) said.
MARKET ALPHA WATCHLIST - NVAXNASDAQ:NVAX
For those that followed my post last week, we saw major gains in NVAX this week. This was expected as the delta variant information was being surpressed and the market had not totally digested it just yet. Now we are digesting the delta variant in a way that could be an over reaction but also may have some confluence with the fact the FED doesn't have much ammunition this time around in terms of interest rates.
Anyway, I expect NVAX to see higher levels but don't get caught chasing.
MARKET ALPHA'S GOLDEN CROSS - TLTNASDAQ:TLT
Here is my take on a common trading strategy that uses the 50 and 200 moving averages to indicate a trend change.
In my version, I use two multi time frame EMA's. One runs at an input of 26 and the other runs at 104.
Typically these kind of crosses will involve a retest and sometimes may fail, but if the trend holds true in a reversal we can usually see pretty large gains.
As always, don't get over confident and always know your stop loss and take profit levels.
RBLX don't miss the breakout!RBLX 4HR Chart
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TA
Nice bounce off 74-75 level with a nice retrace to the .618 of may lows & june highs (63.97-103.92). Filled the gap at 76.33 w/ a nice symmetrical triangle setup. Strong movement started today for breakout to the upside for a confirmed reversal. 76-78 dip I'd look to go long, targeting 100+.
Key Levels
Support: 74.60, 76.36, 79
Resistance: 82.45, 89, 93.50, 95.95, ATH
Ways to play:
1. Shares
2. Atm/ otm calls 2 weeks+ exp. contracts
volatile ticker and able to play 1-5 points otm, the further the strike I do recommend more time
Institutions Taking Advantage of Early BTC Dip BuyersCOINBASE:BTCUSD
Bitcoin has been a sell since 63,500 and hasn't looked back up since.
The future may be digital but the realized and unrealized gains now.
Dip buyers are struggling to keep even the bearish channel intact. Unlikely to see higher levels before we test under 30, even then... 20k is in the crosshairs.
MARKET ALPHA - DOGESymbol: BITFINEX:DOGEUSD
Indicators
Laguerre RSI
2 x Multi-Time Frame EMA
Comments: This thing is literally going back to 3 cents. The market is not a friendly place and should be avoided unless a plan is had and you are completely fine with losing 100% of your investment especially in something like dogecoin.
When you think you are right in the market you have already lost your edge.
MARKET ALPHA WATCHLIST - NVAXSymbol: NASDAQ:NVAX
Indicators
Laguerre RSI
D-RSI
Multi-Time Frame EMA x2
Comments...
Delta Variant is rising and people are starting to get concerned. People will start to look at vaccine stocks at this may be an opportunity to find some reward.
Bearish side is that we are in a huge area of being rejected and the LaRSI may be indicating that could be true again.
Be careful on this one.
MARKET ALPHA WATCHLIST - TLTSymbol: NASDAQ:TLT
Indicators
Laguerre RSI
2 x Multi-Time Frame EMA
Comments: The FED has been pumping a substantial amount of liquidity in the US economy via creation of and then purchasing of bonds. The problem became more complicated as Michael Burry revealed his massive short position against the bond market.
Michael Burry was not the only one shorting the bonds. The decline of the dollar was a clear indication that the Fed efforts would lead to further decline in bond prices.
The bonds look to be unraveling as the word "taper" has been a focal point of the fed and they are actively having meetings about having meetings... so that is definitely promising.
Market Alpha Long Term Analysis JNJSymbol: NYSE:JNJ
Indicators
Laguerre RSI
2 x Multi-Time Frame EMA
Comments: Looks like an ascending wedge here which typically breaks bearish. The Pattern had been pretty strong until a major violation took place. I expect further downside pressure.
We also just had mention of a new bankruptcy filing in attempt to avoid responsibility of over 30,000 cancer cases.
10-Year Treasury Hiding StrengthFRED:DGS10
Thought I would check out the the 10 year after some crazy price action and decided to analyze this on a longer term time frame.
The Laguerre RSI doesn't show much weakening compared to price which indicates to me there could be a possible pop up even making higher highs.
MARKET ALPHA WATCHLIST - AMATOption Alert
Symbol: NASDAQ:AMAT
Type: Call
Strike: $155
Expiration: 8/20/21
Indicators
Laguerre RSI
Multi-Time Frame EMA x2
Comments...
Large call option came in for AMAT and decided to check out the technicals.
This buyer decided to place a massive bet on this stock rising higher buying way out of the money calls. The technicals show this may be a good time to purchase this price because we are coming into heavy support but it seems unlikely we would reach the price by expiration.
AMC Pumped Into Opex Week, Retail's FOMO's In LongInstitutions pumped $AMC last Thursday to create retail fomo and call buying. Now the stock is being faded as we get closer to options expiry this Friday. This type of action happens all the time as amateur traders don't understand the in's and out's of how the market functions.
BANK NIFTY 14TH JULY PREDICTIONAS PER ANALYSIS , I FOUND THAT THE SUPPORT IS 35500 AND RESISTANCE IS 36000 [
BANK NIFTY MAY BULLISH ON 14TH JULY,
TRADER SHOULD WAIT TILL 35500 TO 35550 , AND THAN BUY BEFORE THIS DON'T TAKE BUY POSITION,
IF GAP UP THAN WAIT TILL 36000 FOR SHORT POSITON.
FOR GETTING LIVE SIGNAL CONTRACT ME 9811158705