Hey Everybody,
I hope everyone had a great weekend. Friday SPY went right to resistance and turned around on some heavy volume. We went down 0.50% to close at $431.50. There is major resistance in the $436.80 to the 100-day simple moving average at 437.73. SPY hit the 100-day moving average and got rejected on Thursday and then tried to break that range on Friday and was rejected again. Right when bulls started to proclaim victory and there wasn’t a bear in site everyone was convinced the bottom was in and we were on the cusp of a major short squeeze. This is what Mr. Market does time and time again. You can bet when everyone says we hit bottom that there is a very, very good chance the market will turn around and at least retest. Spy hit my 420 intraday target the previous week and then ran up to critical resistance at the 100-day moving average it’s possible we retest the 420 range before trying to break that 100-day moving average to the upside. Either that or we take off from here. So critical resistance remains in that 437.75 range and if we break SPY 430 to the downside look for a quick trip back to support in the 420 Zone again. If we break SPY 430 to the downside, I suggest going risk off and if we break SPY 437.75 it’s risk on until we see a breakout of that range and likely continue a trend at which time it will be alot more favorable for swing traders. So, you can SWING short below 430 and go long at 437.
QQQ: The Nasdaq 100 Triple Qs were down 1.26% to close below 370 support and next support is 360-362, that’s critical support. If we break there, then there’s a good chance were coming down to 347. We are in a downtrend until it’s not… so stay nimble and cover shorts if we close above 374, So Below 370 you can continue to stay short but if we close above 374 you need to go long so protect the profits you have by keeping stops tight.
VIX: The VIX was up 15.63% and broke 20 but closed below. If we close Above 20 on the VIX it could start to get ugly although I will point out this has been a pattern, we get over 20 or close to it and then VIXX gets crushed back down to 15.
TSLA was down 2.99% and TSLA broke Critical Support of 254.96. Earnings are coming up, so we are either going to break down or break out hard. It is risk off below 255 so we are short.
Going into earnings we are going to have a large move. Below 255 there’s a good chance we
Break down to the 240’s and then below that we could go to the 230’s and there is a gap at
215 which could Provide support, if so, we will bounce from there.
Open Positions:
519 Shares AVGO Average Price $908.15
2900 Shares TSLA 255.10
879 Shsres NVDA 466.20
Cheers,
G. Allan Collins
