Today’s Trades

Trade 1: $AMD 105p

• Reason: key level rejection

• Entry: 105p at 1.91

• Exits: 2.2, 2.95, 1.96

• Percent Gain: +20%

The game plan for AMD today was to view how price was going to react at the key 107 resistance level following the gap up. When the market opened, there were two scenarios I was looking for. The first was a push at the open into 362 on QQQ and into 438-440 on $SPY that would end up reversing to test last week’s support. The second scenario was a pullback to start then a bounce. The first scenario played out for us and when $AMD popped into 0107, it was having a hard time holding and making higher highs. When AMD failed to hold 107, I went short with the 105p since the market was also finding sellers at the key levels I mentioned. Because of NVDA earnings this week, AMD premiums were juiced and what would normally give us a 25-30% return only gave us 20% at the highs. Base hit day today.

Top watch for Tuesday 8/22/23

$HD: key support range

$HD is back into the key support zone of 323. The last tie HD was in this range it went from 323 to the high of 337 post earnings. If HD fails at 323 and makes a lower low on the daily then it can set up for a pullback into 320. I would only look for calls if we see 323 hold and it gets a reclaim for 325 but we will need to see a 323 test first.

I am watching the 8/25 320p under 323 and the 325c over 325. (I like the puts more)

$GOOGL: inside day

GOOGL was able to hold the 126.50 support and closed right above 128. if GOOGL can hold over 128 tomorrow then calls can be in play for a bounce towards 130 if SPY holds 440. If GOOGL fails at 128 and it breaks under 126.50 then we can see a larger breakdown. 128 is a key level so I want to be patient with price action around this level. It primarily depends on how $SPY acts to the key 440 level. Be patient with this one.

Im watching the 8/25 130c off of 128 or the 128p under 128.

SPY QQQ analysis

Today, SPY and QQQ started with a gap up, but were able to hold higher lows from Friday's low and rallied into the close. SPY was able to test 440 into the close but failed to close above. QQQ was able to hold a higher low at 360 and closed near 365. For tomorrow. If SPY can clear 440 and QQQ can get through 365 then we should be in store for more upside into 368 on QQQ and 442 on SPY. If we see a SPY fail at 400 and QQQ at 365 then puts will be in play for a short-term pullback. I believe we can still trend higher this week but we need to see some digestion on the bounce and 440 will be key for more upside. Let's take it day by day and focus on PA.