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Technology Sector:
-> "NVDA is in its Optimal Buying Range" (13% Average One Month Gain)
-> "ADBE is in its Optimal Buying Range"
-> "MA is in its Optimal Buying Range"
-> "MSFT is Hott [+2.3%]"
-> "AMZN is Hott [+3.7%]"
-> "FB is Hott [+3.5%]"
-> "TSLA is Hot"
-> "NFLX is Hot [+3.4%]"
-> "AAPL is Cold [+1.5%]"
-> "AMAT is Cold [+0.17%]"
Summary: Due to the fact that many of these Tech companies are either "hot" or in their "optimal buying range" I would conclude that the tech sector can easily head much higher either this week or next. Obviously, I would like to see a technical breakout before putting on any trades, but this is a very bullish indication that I haven't gotten in quite some time. Microsoft, Amazon and Facebook alone account for a large portion of the QQQ. If QQQ Breaks over $315 this week we could potentially see $320. Watch BIDU for a potential pullback this week to the 9EMA on the daily. It is extremely overextended on a long term basis.
Levels to Watch:
NVDA: Watch for a break and close over the 50SMA on the daily. Over $547 and this stock can quickly run to $560, $572, and then $582. NVDA is a great company to own and a great stock to trade. Close under $510 is quite bearish. Has been stuck between $514 and $546 for quite some time. When this stock starts moving, it moves fast.
ADBE: Over $510 can see $515 then $520. Next Level at $526.
MA: Over $362 can see $367. Over $368 will see $370 then $375. If you look at the chart from 8/24/2020 to 8/28/2020 you can see that this stock really gets moving when it gets moving.
MSFT: Levels: $216.55, $220, $224.33, $228.91, $230, $231, $232.86
AMZN: Over $3305 can see $3340. Over $3352 can see $3360 then $3370. Next resistance is at $3400.
FB: Needs to break $281 to see $286 then $290.
TSLA: This stock is just ridiculous. Over $720 could potentially see $750 this week. Needs to hold 21SMA on daily to hold bullish trend otherwise we can fall to the 50SMA.
NFLX: Close over $560 would be huge and would indicate a potential major breakout to $580 and then $600 within a few days. NFLX has been stuck between $467 and $549 for quite some time now.
Finance Sector:
-> "BAC is in its Optimal Buying Range"
-> "GS is in its Optimal Buying Range"
-> "MA is in its Optimal Buying Range"
-> "XLF is Hot"
-> "JPM is Hot"
-> "ICE is Cold"
-> "COF is Cold"
-> "MET is in its Optimal Selling Range"
-> "MS is in its Optimal Selling Range"
Summary: This is quite a mixed reading for Finance. However, since XLF, the sector, is "hot", I believe their is a bullish bias to the banks for the next couple of weeks. Especially due to the fact that many of these stocks are close to major breakouts. If these stocks breakout this week they could gain some momentum. Bank of America tends to perform very well when it is in its optimal trading range and it hasn't been in it for quite some time now. I currently am holding Jan 22 and Jan 29 BAC $30 Calls as I believe Bank of America is ready to pop. I have a 30% stop loss in place and will take profits when I see the momentum waning.
Levels to Watch:
BAC: Watch for a break over $30.35 for entry. A close over this level is quite bullish. A break over $30.55 is very bullish and can take us up to $30.94 very quickly. Over $31 and we can see $32 soon thereafter and then $32.50. When Bank of America starts to run it usually runs quite a bit like last October to December when it ran from $28 to $35.
GS: Break over $264 can quickly bring us to $270. $270-$275 will be a very tough range to break out of.
XLF: Important Levels at $29, $29.55, $29.73 and $30.
JPM: Currently has a measured move to about $132. I believe we can hit $131 in short time, within a week if the measured move comes to fruition. Needs to hold over $126 in order to stay bullish. Resistances at $127.5 and then $130.
NOTE: I am only bullish on these stocks and sectors if the current levels hold up and we do not pull back over 1%. If we pullback 1% or over on QQQ or XLF, the potential for these setups will be diminished. Look for price breakouts over the levels I have listed for bullish action. If SPY breaks under $369 I will be neutral on the market and if we break under $367 and hold, I will be bearish.
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