3/20/2018 Market Review

Fun Fact #5 

Did you know that bulls (the animal) swing their heads up, whereas bears (also the animal) swipe their claws down?

That’s why being bullish means you think the price will move up, whereas being bearish means you think the price will move down. 

Bull Bear Image

Image Source: https://www.dreamstime.com

 

Market Analysis 3/20/2018

Below are QQQ, SPY, and DIA like usual. 

QQQ analysis 3_20_2018

QQQ closed near the day’s high which is bullish. QQQ is also up another .1% in afterhours trading. However, the volume was well below average so that tells me that neither the bulls nor the bears are in control. I think holding your long positions here is still a good idea. The current direction of QQQ is unclear due to the uncertainty with Facebook stock. 

My prediction for this week is still slightly bullish, but we’ll have to see. 

 

DIa analysis 3_20_2018

Dow Jones had a nice inside day, meaning the entire body of today’s candle rests inside the body of the previous day’s candle. Although Dow Jones went up a decent amount today, the volume was very light. 

 

SPY analysis 3_20_2018

SPY is the weakest of the three major indexes, and there wasn’t anything noteworthy today. 


 

FAANG stocks analysis:

Facebook: We got a massive bounce off the day’s low of 161.95, but still closed down 2.5%. For swing traders, I recommend scaling in at the low to mid 160 levels and holding for 2-3 weeks. This trade offers a good risk to reward ratio since Facebook has dropped into a strong support zone (160-170 levels). The chart below indicates that the bears had trouble pushing Facebook below 160, which would have been a disaster. 

FB analysis 3_20_2018.PNG

 

Amazon: We got a massive bounce off a touch of the 20 day EMA yesterday. Remember this is an edge? However, like the indexes, the volume was very light. If the buying pressure stops, look to enter on the next dip to the 1450 – low 1500 levels. 

AMZN analysis 3_20_2018.PNG

 

Apple: Apple is neutral today and has closed below the 20 day EMA for the second day in a row. This proves to me that it has successfully “pulled back” from an all-time high. If you’ve been waiting for the pullback, now’s the time to buy. Otherwise, you can look to buy in the 169-172 levels for a better risk to reward ratio. I’d say just buy the dip now, but I’m also impatient and always scared of the stock running away without me on board. 

AAPL analysis 3_20_2018.PNG

 

Netflix: There’s not much to talk about with Netflix other than that I’m not buying it until it at least goes below 305. The 280-290 levels offer a good risk to reward ratio to go long. 

NFLX analysis 3_20_2018.PNG

 

Google: We are well below the 20 day EMA now so technically I would be looking to buy aggressively, but something just doesn’t feel right. Entering now gives you a good risk to reward ratio. If you are more patient, look to buy in the 1040-1060 levels since this is an intermediate support zone. 

GOOG analysis 3_20_2018.PNG

 

I look forward to writing for you all tomorrow! Good night.  

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