3/21/2018 Review of Major Indexes and AAPL + FB

Fun Fact #6

Did you know that QQQ, SPY, DIA, and IWM options trade until 4:15 Eastern Time, which is 15 minutes after the market closes? The volume is considerably lighter, so the spread (difference between the bid and ask price) is usually significantly larger. 


 

3/21/2018 Market Analysis

Today the Feds hiked rates which was expected. We had a nice run up into the Fed announcement, but then tanked to close the day. 

Facebook still held up nicely after a massive bounce off the opening price. If you listened to my suggestions to scale in in the low to mid 160s, you would be up a nice amount. 

The indexes are below. The one to buy is still the QQQ.

QQQ analysis 3_21_2018.PNG

We are still below the 20 day EMA (highlighted in the green line above). Although you could make the valid argument that QQQ isn’t worth buying until it hits the 162.5-164 level, I still think it’s a good time to start scaling in. 

DIA analysis 3_21_2018

Dow Jones is still chopping around in this range, and will probably do so for a while. My guess is it goes up from here if it wants to move one direction or the other. Otherwise, I expect the index to stay relatively flat for a couple weeks. 

SPY analysis 3_21_2018.PNG

I would still avoid buying the SPY until it reaches the 263-265 level. I expect this to move sideways like the Dow Jones, but if it moves, I expect it to go up. 


 

The FAANG stocks that are worth buying/considering are FB and AAPL.

Take a look at FB on the weekly chart below. Notice that the stock bounced off the 20 week EMA (green line) multiple times in the last three years. Each touch of the 20 week EMA resulted in a new all time high. With proper risk management and given you hold long enough (at least 2 months). Facebook shares look like they are worth buying here as long as we don’t close below 160.

FB analysis 3_21_2018 Weekly.PNG

AAPL slumped today and dragged the QQQ down significantly (AAPL is about 12% of QQQ). It is now in the buy range of 168-172. If you’ve been waiting for a pullback, now’s the time to add a half position. You can add more in the 163-166 range if it drops that low. If AAPL drops below 160, this signals to me that there will be a trend change. The weekly chart of AAPL is below.

AAPL analysis 3_21_2018

I’m predicting a significant up day tomorrow for AAPL, FB, and QQQ. 

 

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