Weekend Wall Street #27- The Best Trades for 1/23-1/27 and Futures Game Plans
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Happy Sunday everyone! Last week was quite the week full of volatility and this week should be great and full of opportunities as well. Here is the economic calendar for the week:
As you can see, there’s not too many noteworthy events this week. If anything can move the markets it’s the PCE price index on Friday morning.
What will be key, in my opinion, is the upcoming earnings which started with NFLX 0.00%↑ last week, which actually didn’t go too bad.
Here is the earnings calendar:
MSFT 0.00%↑ will impact the S&P the most since it’s the most heavily weighted, but TSLA 0.00%↑ will have a big impact on the EV stocks.
Microsoft will have interesting approach as they include talks about AI and their use of OpenAI’s softwares (like I mentioned they are a huge investor in OpenAI) and are planning on integrating it with services they already have. They also just did job cuts which can be seen as a “band-aid rip“ move by the company.
Other catalysts to watch this week:
1/23 - RKLB 0.00%↑ has a launch after many delays and Chinese New Year should bounce the price of oil
1/24- PGEN 0.00%↑ presenting phase 2 data
1/25- Big day for EV stocks. PLUG 0.00%↑ (EV chargers) has an investor presentation along with NKLA 0.00%↑ (high short interest EV stock), and TSLA 0.00%↑ earnings.
$CL_F Oil Futures Trade Plan
Long on a close over $81.90 with a PT of $84.70
Short on a close under $79.10 with a PT $75.68
Fair Value Gap to $84 (low liquidity in sellers there)
Chinese New Year is expected to increase the price of oil:
My plan remains similar from last week’s. We saw a retest and bounce off of this trend line which is very bullish. If you don’t trade futures you can trade USO 0.00%↑ or USO options.
Here is the options flow for USO 0.00%↑ from Friday:
S&P 500 Trade Plan ($SPX)
Remember, the best ways to trade this, IMO are via SPXL 0.00%↑ (3X S&P 500 Bull ETF) or SPXS 0.00%↑ (3X Short ETF), SPY 0.00%↑ call options, or $SPX
Long on a close over 4007.85 for PT 4083.95
Short on a close under 3892.54 with PT 3821.26
PIVOT (bias on other trades in the market) is 3957.45 for this week, so that will determine my risk on other trades.
We are still waiting for a breakout from this pennant here which will determine the next wave of the market.
The market is currently pricing in no more rate hikes after February which may be correct and the dollar is in fact very weak now at the key $101 level:
Remember that the dollar and the markets are usually in an inverse relationship- when the dollar drops, stocks pop.
Bitcoin Trade Plan