This has been an active week, with SPY above 312 highs, the expected move with airlines, renewable energy, and watchlist stocks performing quite well. Airlines are hot again this morning, with UAL (+6.00) and AAL (+4.00) going into the open.
SPY and NFP
Non-farm payroll (NFP) numbers were better than expected, pushing futures higher. As a result, shorts are covering this morning, and SPY is gapping above the March pivot high (313.00 +/-) where the markets reversed and moved lower (arrow). The 161.8% Fibonacci level is next.
MACD and RSI are bullish. Consider scaling out of big winners going into this week that are trading at 52-week highs. Example: Zoom (ZM) is up 220% from the January levels. we shorted ZM yesterday, for a day trade and kept a few puts for the more bearish price action this morning. ZM is down another (-7.30) going into the bell.
All things considered, we’ll take the SPY calls off for a profit this morning.
Spotgamma update: Support at 3100 into June, with a break in bull trend and higher volatility not anticipated unless we break 3050. 3150 is current resistance. Higher gamma levels suggest the market is fairly well supported.
Join us today in the trading room for our LIVESTREAM broadcast
during market hours, as we navigate the current environment. Watch, listen and trade from 9:20 AM to 4:15 PM Monday through Friday.
Happy Trading,
Vinny
Want to become a member? Check details here:
Disclaimer: Do your Own Research
Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional investment advisor in connection with, or independently research and verify, any information that you find on our Website and wish to rely upon, whether for the purpose of making an investment decision or otherwise. Trades and or positions listed and taken from the watchlist are my own and should not be considered “advice” to enter any particular position or asset.
Investment Warnings
We would like to draw your attention to the following important investment warnings. The value of shares and investments and the income derived from them can go down as well as up; Investors may not get back the amount they invested – losing one’s shirt is a real risk; past performance is not a guide to future performance.
Live Sessions
Live broadcasts are educational in their content. Proper risk management is considered on every trade or asset mentioned.
*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities.
As always, the use of technical and fundamental analysis is encouraged in order to fine-tune entry and exit points to average seasonal trends.
These mentions are stocks that we may or may not decide to trade as outlined in the watchlist. Always use a stop.