Take Me To the Live Show at 8:45 ET
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| Dear Fellow Trader: |
| Markets are coming off their best week since mid-April, with the S&P 500 up 4.5%, Dow up 2.5%, and Nasdaq leading with a 6.7% gain. |
| However, futures were pointing lower today, suggesting that some caution was returning to the markets. |
| Investors will be particularly focused on whether Big Tech earnings can maintain momentum after Alphabet’s strong results helped drive the rally last week. |
| This week also brings a packed economic calendar alongside crucial earnings reports from tech giants that could significantly impact market direction. |
| Keep an eye on the setups around expected moves — there’s a lot of opportunity when you know what numbers the market is really watching. |
| Let’s look at the schedule… |
| Corporate Earnings This Week: |
- Monday: Domino’s Pizza, MGM Resorts, Waste Management
- Tuesday: Coca-Cola, First Solar, PayPal, Pfizer, Royal Caribbean, Starbucks, Visa
- Wednesday: Microsoft, Meta, ADP, Caterpillar, Qualcomm, Robinhood
- Thursday: Apple, Amazon, Airbnb, CVS, Eli Lilly, Mastercard, McDonald’s, Reddit
- Friday: Chevron, Exxon, Cigna, Apollo
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| Economic Data News: |
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Momentum Monday
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| What’s the state of momentum after last week’s rally? |
| You know the answer, as we saw a rally kickoff last week. |
| However, let’s examine a ticker that offers a different perspective. |
| The iShares MSCI USA Momentum Factor ETF (MTUM). |
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| We’re seeing strength in this ETF, with recent breaks above its 20-, 200-, and now 50-day SMA. All while its 50-day moving average is below its 200-day moving average. |
| We need to keep an eye on the names that comprise this ETF… |
| Walmart |
5.14 % |
| JPMorgan Chase |
4.90 % |
| Broadcom Inc |
4.73 % |
| Tesla |
4.0% |
| NVIDIA |
4.03 % |
| Meta Platforms |
3.86 % |
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| We’ll check those names and more as we kick off today’s trading session. |
Breakouts and Breakdowns
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| Momentum is all about the strength of the trend. For now, it’s returned, and investors and traders are trying to play catch-up. We’ll keep a close eye on the number of stocks breaking down and breaking out. |
| The surprise: The total collapse in selling pressure over the last week. |
| And with so much riding on this week’s earnings, knowing where the real pivots are hiding could be the difference between chasing moves and catching them early. |
| I’ll take you through our measures and give you a list of key names to trade as conditions shift. |
| But you have to be in the room… |
Sector Check Ups
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| We’ll start the week with a dive into the sectors – what’s working? |
| What’s not? Right now, we have four sectors in positive territory… And we’re looking for ways to trade each of them. Let’s dig into our leveraged ETFs for clues on market flows. |
| Now… here’s something that you might not know… Sector momentum is NOT based on the S&P 500. It is based on broader measurements of many companies spread across the S&P 500 and the Russell 2000. |
| Here’s where we stand on our sector SMA20s this morning on the S&P 500…: |
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| But there’s an important difference… and I’ll walk you through it. |
| We’ll be live… at 8:45 ET. Join us here… |
| I look forward to seeing you there. |
| Stay positive, |
| Garrett Baldwin |
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