While August opened on a modest note, Tuesday’s strength suggests we may see another new high for stock indexes. You could play the move through an index ETF like SPY, or could consider WMT or NVDA, both of which I have setups on heading into next week.
Stock indexes opened weak but closed well, and if the daily charts are any indication of what’s to come we have to consider the potential of a new high. If bulls are still in charge it’s imperative we find some leadership. Let’s review where we might find that and a few ways to trade it later into August.
The early rollover intraday in the indices was quickly faded — meaning traders and investors bought into weakness. What does that say about panic and pullbacks in August? I discuss that and more in this update.
Today’s sell-off and recovery offers a glimpse into trader and investor psychology as we kick off August.
I started a position in NVDA with some long calls to add to my stock positions, then @traderbruce came up with a butterfly I had to add. Check it out here.
August is here, and there are squeezes setting up across the indexes and sectors. Right now, I see opportunity in TSLA, NVDA, YETI, CRWD, and more, along with key earnings reports this week in NET, ETSY, and more.
Daytrading is often a great way to tackle the uncertainty of one of the trickier months of the year.
While it may be a bearish month seasonally, is that necessarily a foregone conclusion, and where might the opportunity be in a pullback?
MA has a nice pullback cluster on the Daily. Please be sure to wait for triggers. It is a royal setup.
