Economic Calendar

Weekly Trade Log for 7/31 - 8/4

7/10 green trades this week. For more information on the community/membership visit: www.tradewithdan.com

Main Focus

$NFLX: daily consolidation

• Entries:

  • 8/11 440c over 435
    -----------
    8/11 420p under 425

• Targets:

  • 440, 442, 443.50
    -----------
    420, 413.80, 410

• Analysis: NFLX has been holding up relatively well and continues to find support in the 428/430 range. If NFLX continues to hold this support and we see a reclaim of 435 then we should be set up for 440/442 test again. Calls can work over 435 and puts can work under 425

Chart:

$AMD: daily consolidation

• Entries:

  • 8/11 122c over 122
    ---------
    8/11 109p under 109

• Targets:

  • 123.50, 125
    ----------
    106, 105

• Analysis: AMD tested the 109 support following earnings and found some aggressive buyers at this support again. AMD is now in a range of 122/109. This will be the range we want to play off of. If AMD can get through 122 then it should be able to run another 3 points and under 109 can drop it into 106/105.

Chart:

$DIS: key support range

• Entries:

  • 8/11 88c over 87
    ----------
    8/11 82p under 84

• Targets:

  • 87.80, 88.40, 89
    -------
    82, 80

• Analysis: DIS is basing above the 84 support zone and has been seeing more buyers step up before earnings this Wednesday. if DIS continues to base over 84 and gets the reclaim of 87, I like calls for a pre-earnings run up into the 87.80-88 range. I would look for puts under 84 but mainly after earnings

Chart:

$MSFT: key support zone

• Entries:

  • 8/11 325p under 326.50
    ---------------
    8/11 340c over 336

• Targets:

  • 325, 322.60, 320
    ----------
    338, 340, 345

• Analysis: MSFT continues to show weakness as it makes lower highs from the earnings report. If MSFT fails to hold over 326.50, puts will be in play for a move back into 325 and then 323.50. the 326.50 support is a key level so once this fails puts can pay. It needs back through 336 for calls

Chart:

Overall Marke Analysis

Last week, we saw a fairly volatile week following some more tech earnings and a downgrade from Fitch from AAA to AA+. From that, we saw sellers on large volume and the pops getting sold following Tuesday. This week will be a trickier week as we are now approaching key support levels on Both QQQ and SPY. SPY the next key support zone under 447 is at 444 and for QQQ under 372 the next key support zone is at 368.50. I would consider looking for a bounce at 338.50 and at 444 on SPY. if these fail to find buyers then a larger pullback can happen. As usual, our approach will be follow momentum, stay patient until our edge is present and size up when we get HQ setups. Be patient this week, don't force trades and let them come to you. Less will be more this week.

Chart for SPY:

Chart for QQQ:

Sunday Scoop