Scott Redler’s Dog Bytes: Hard Times!
Over the two weeks, we’ve been cautious because of macro issues like Evergrande/China, the Debt Ceiling, Fed Tapering, and US tax hikes.From a technical perspective, the SPX got faulty and then lost the 8/21 day to have active traders reducing risk. 14,000+ traders around the world have read my moving averages ebook, so hopefully you were more careful. For a market correction to happen, you need a close below the 8/21day. Then we get Price Discovery. Everyone will guess on what comes next. We’ll map out levels and be tactical and measure things along the way. In a sea of red, we’ll see if any groups can go green for a trade. That should be your big focus now.Now let’s dig into the major ETF’s so you know what to watch to start the week. Tech got faulty late last week, especially Friday when I got out of all the F.A.N.G. type names. Now we’ll see if QQQ’s can hold the 50 day near $368.50-$369.50 for a trade. If that zone breaks, volatility will spike further with the 100 day all the way down at $360. IWM had a little relative strength on Friday, but it still isn’t special. For today, see if it can reclaim $219. Otherwise, I’d avoid it. XLF closed below the 8/21 day which makes the banks an avoid. Now see how it handles the $37.15 area. I gave OIH until $184 as the energy sector is always tricky. Some are giving it to $178. I’ll see how it acts the next few sessions. Two weeks ago, I put on a big VXX call spread in case volatility hit. I took the October 15 $30/$35 spread for a cost of $0.65 to make $4.35. I might trim some 20% the long side and keep the short side. Usually, VXX spikes only last a week or so and it’s less than a month to expiration.Positions Disclosure as of 9/20/2021 at 8:24 a.m. ET
Continue Reading -->Options In Play – Earnings On The Radar Week Of 9/24/21
This week will feature several high-profile reports during a relatively slow earnings week. FDX, ADBE, NKE, and COST are a few of the big names scheduled.
Continue Reading -->Options In Play – The Importance Of The 8day ema
If you focus on momentum stocks and strategies, then you need to focus on the 8day ema. It is the best indicator to use when playing momentum patterns.
Continue Reading -->Options In Play – Why Trends Matter For Swing Trading
Notice how the action on a day-to-day basis has been less consistent recently (i.e. strong one day, weak the next). It’s because of the state of the uptrend in the market and it is important to take note of.
Continue Reading -->How to Trade a Market Pullback
Last week’s market was boring before it rolled over on Friday. Sami’s looking for an upcoming pullback, but there are different ways to trade it depending on how it moves. Find out what his plans are for each scenario. In this video, Sami explains: – The condition under which he would trade AEHR – How to recognize a Transition A breakout – Where he wants to see FBRX go before he commits – The problem he has with GSAT – Why he only held SD for one night
Continue Reading -->Scott Redler’s Dog Bytes: Facing Facebook
SPY closed on the lows last week below the 8/21 day which had me taking risk down. If sellers want to keep some active control, they need to reject the price into the $448.75-$449.50 area. That is the range you need to watch today, so keep it on your radar.Now let’s dig into some key names, starting with a big one: FB seemed the strongest on Friday and if the market hangs in, it might be a focus to clear the $384.33 pivot to make new all-time highs. GS upgraded it this morning. This name has been very good to us. If tech gets sold, use $380.50 as upper support. AAPL: there’s lots of debate on the ramifications of the Epic verdict. The stock broke $153.95 and the $151.29 pivot to flush some active longs out. We’ll see if it was an over reaction. It’s bouncing back a bit this morning. If sellers want to keep some control, I’d think they reject price into the $151.29 area. Also, if this goes from green to red, it might bring out sellers in tech. AMZN had a nice move after clearing the descending channel around $3240 to peak at $3549. I sold puts twice to get synthetically long which was nicely profitable. Today, see if it clears $3482 or gets rejected. That will tell us a lot about sentiment in tech. It’s holding up better than most names, so I’ll try to get long again if the market holds in. RBLX was a nice trade for us last week. I bought it around $84 and it hit $90+. I still have some on. Now it needs to hold the $85.30 area. Positions Disclosure as of 9/13/2021 at 8:05 a.m. ET
Continue Reading -->Options In Play – What A Technical Stop On An Option Means
I talk about stop losses all the time when it comes to options trading. Sometimes the stops are triggered by a debit loss percentage, other times it is a technical stop.
Continue Reading -->Options In Play – Using Measured Moves As Targets On Earnings
If a stock is at an all-time high, finding levels to focus on can be tough. I like to use measured moved levels, and it helps me target certain option contracts around earnings.
Continue Reading -->The Magic Number
As long as the market doesn’t break below a certain number this week, the bias should continue to be bullish. But if it goes below, expect a pullback. What is that magic number you should look out for? In this video, Sami explains: – Why he thinks IWM could break out – When a major move in AIG could happen – How to be aggressive when trading AUPH – Which oil stocks look nearly identical – What CYBR reminds him of
Continue Reading -->Scott Redler’s Dog Bytes: Tech Watch
SPX futures are flattish. We’re getting a slow start to the week after the weaker-than-expected jobs data from Friday. The consensus is that the Taper will start December and might be a reduction of $10B instead of $15B. The 9/22 Fed Dot plots will be important. September is historically a volatile month, but we can’t get too bearish if 4513 holds. So remember that level. If the rally wants to continue, 4545 is pivot resistance.Now let’s dig into some key tech names. SOXL did a Red Dog Reversal around the $38.58 pivot and stayed special all the way to $49. Last week it digested above $45 to keep its commitment. Some are in vs. that spot.NVDA led the semis since announcing a stock split. Earnings got it going again through the $209 area. It hit $230.42 before consolidating above $221. On Friday, it turned up and now we’ll see if it tries to clear that high for another move. Be careful adding on strength.AMD keeps giving us new setups. Friday got me back long vs. $108.50. I’ll see if it can get and stay over $111.17 to possibly add. SNAP started acting better as I re-entered. It’s still a bit sloppy so you need to take care with size. I’d like to see it hold the $71.50 area. Perhaps it clears $75-$77 to open the door for higher prices.PYPL has a nice bull type flag look so I got in Friday. I might add vs. $284 to go green. Then it needs to clear $293 with authority to open the door for a move back to the $310 area in time. Positions Disclosure as of 9/7/2021 at 8:05 a.m. ET
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