NPP Trades Daily Recap 6.7.22
The SPY fell in early morning trading to the 21ema and important 407/405 area. I used the dip to add SPY common as a good risk/reward opportunity and we rallied the rest of the day finishing near the top of the now 7-day consolidation range. As I have said, as long as we remain above 407/405, this is a bullish development. CPI number comes out Friday premarket. I believe we stay in this 407/417 range until that announcement it released. Then, the market may use that announcement as a catalyst to either break the range up or down. If we break up, I’m looking for a touch of that light blue downtrend line/green line 50sma in the low 420’s, with the possibility of an overthrow to 430. If we break down, I’m looking for at least a move down to 403/394. Below 394 and we likely resume the downtrend.
I still favor a bullish resolution to this consolidation, but as always, price is the final arbiter.
As I mentioned Sunday, in my weekend research I was seeing a lot more names setting up for swing positions, which also reinforces my bullish bias. A few of those names have triggered and a few more are very close. I’ll go over those in the More Detailed Recap…
The More-Detailed Recap:
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