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Tech Stocks:
[1] "JD is in its Optimal Buying Range" (High Avg Increase of 6%)
[1] "MSFT is Hott [+2.3%]" (Earnings Tuesday, Jan 26 AH)
[1] "FB is Hott [+3.5%]" (Earnings Wednesday, Jan 27 AH) [1] "TSLA is Hot" (Earnings Wednesday, Jan 27 AH) [1] "AMZN is Hott [+3.7%]"
[1] "ADBE is Hot [+2.8%]"
[1] "SOXX is Cold"
[1] "AMAT is Cold [+0.17%]" [1] "GOOGL is in its Optimal Sell Range (-1.3%)" (I find it surprising that so many Tech Stocks are still statistically bullish after the recent run up. In my opinion, this means that tech could continue higher this week. I will post some levels that I am watching below. Take note that MSFT makes up 9% of the QQQ, FB makes up 3.6%, AMZN makes up 8.88%, TSLA makes up 4.5% and ADBE makes up 2%. Might not be a bad idea to trade some ITM QQQ calls from Monday into Tuesday. We could get a pre-earnings run up for Tech. This is just my opinion and is not investment advice. Usually the way earnings works is, if we have a major run up prior to earnings, usually the stocks move after earnings will be muted to the upside or down. However, if the stocks are flat or underprices prior to earnings, sometimes they can pop hard. Depends on overall sentiment in the market a lot more than the actual earnings results.)
(NOTE - Stocks that are "cold" or in "sell range" usually just have less returns compared to normal, they do not always go down a lot.)
Levels to Watch:
QQQ: A Pullback to $319.50/$320 would be quite healthy as there is a major support level there. It is also the 9EMA on the daily which tends to act as support. The upper area of the current Trend Channel is around $329.50/$330 for Monday. As the days go on, that upper trend line increases. I will expect some resistance at around $329.50/$330 if we get that high Monday or around $330/$330.5 if we get there on Tuesday. If we overshoot these levels by $1 I think $335 is possible. But at that point we will be very extended and could melt up into a top before pulling back violently. Seems like we currently have a couple of fib extensions at $333.25 and $335. Under $315 would be slightly bearish; but I would expect a bounce around that level. As long as the QQQ stays in the current Trend Channel and holds the 21sma on the daily and doesn't break under it for more than a day, we should stay quite bullish.
ADBE: Over $482 is where things get really interesting. I will be grabbing some $490/$500 calls depending on the premium. A close over $482 will VERY quickly lead to about $496. At that point, Adobe will be over its 21sma/50sma and 9ema. Adobe is an amazing company fundamentally with outstanding EPS and Revenue Growth. They make a ton of money and I am never surprised when I see this company run.
JD: Over $96.5 can easily see $100/$100.75. Over $102 and we could easily see $105/$110/$116 in a short while. JD seems to be one of those stocks that can easily go straight up for days; defying the laws of gravity. Year over year revenue increases are quite impressive.
AMZN: Could pullback before continuing its run. However as seen in the past, it doesn't really need to. Over $3350 is where this thing starts to run. Over $3350 can see $3400. Over $3405 can see $3447. Over $3455 can see $3483. Under $3085 is when things get bearish.
TSLA: Tesla tends to gap up from earnings and then plummet. if you look at past earnings. History tends to repeat itself. however, Over $885 and this thing could run to $990. It is possible as this stock has a mind of its own. Under the 21SMA on the daily could indicate a major drop.
MSFT: Over $227.50 can easily see $230/$232.50. If tech is strong and MSFT breaks out. A move to almost $235 would not surprise me as that is the upper end of its current trend channel. Under $223.5 will indicate a potential pullback.
FB: Over $281 is where things start getting crazy. Can quickly see $287 then over $288 can see $291/$294.
Finance Stocks:
[1] "GS is in its Optimal Buying Range"
[1] "BAC is in its Optimal Buying Range"
[1] "EQR is in its Optimal Buying Range"
[1] "XLF is Hot"
[1] "JPM is Hot"
[1] "COF is Cold"
[1] "MA is Cold" [1] "MS is in its Optimal Selling Range"
(The above reading for Finance is slightly bullish but not excessive. BAC tends to perform extremely well when it is in its optimal trading range, but that is not always the case. I will most definitely have BAC on the watchlist in the coming weeks. Would like to see BAC get back over the 21SMA on the daily before I get bullish on it. If it retakes the 21SMA and holds above it, it has the ability to go higher.)
Oil Stocks:
[1] "KMI is in its Optimal Buying Range"
[1] "EOG is in its Optimal Buying Range"
[1] "BP is in its Optimal Buying Range"
[1] "PSX is Hot"
[1] "CVX is in its Optimal Sell Range (-0.30%)"
[1] "CSL is in its Optimal Sell Range (-0.30%)"
(The above reading for Oil is slightly bullish. EOG over $55.55 could make a run for $60. Over $63 can take us to $65 then $70. Not entirely sure how well Oil will do under the new president, however, a lot of people investing believe there is an opportunity with oil stocks as a lot of them are very low. KMI is a great opportunity over $16; can quickly run to $17. will be watching this Sector.)
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