$SPX, $AAPL, $NFLX, $IWM, $QQQ, For june 5th 2019 | #FinTwit, #Trades
Timing is everything
At the moment most traders were looking for a breakout above 2950, we certainly had priced this level as a toxic line. Timing is everything, having a mental stop loss is always needed, and a hard stop at a critical area, will preserve capital. Going to the top of a tower requires a harness. Does not matter how effective is our system, a mental or a hard stop is needed, if we can not price properly a stop loss or the stop loss is too wide, probably the instrument being analyzed should not be traded. Most importantly, once a trader has verified that a line is lethal or toxic, he should stay away and give enough time, a month or two month, for the pressure that resides in that line be released and a new tradable pattern can appear.
This a critical area. In other time or years ago, I could have set 2720 as a target and considered it as a secure level based on the opinion constructed on the indicators we track. But now we demand more from markets and there are some elements for a pullback tomorrow.
SPX, support should be 2787, below this level, the high struck today was a B/1 up with next standard retrace at 2779 (MPlink). The .764 of the move off 2728 is at 2753. In case the market opens at 2833, tha only should complete the red five.
IWM, scarcely broke below 149 today, no change, below 148 next dependable retrace is 146.42 the .764. (IWMlink). Above 149 there is resistance at 142.04. In case IWM opens at 152 that should complete the 5th of C up.
QQQ, three waves up off the lows at 176.83 (QQQalt9link). . The two stocks that participated more were AAPL, NFLX and FB.
AAPL still can see a corrective retrace toward 178.
FB has a critical weekly structure.
NFLX has broken some resistance, might print five up at 362.
AMZN, held support at 1717 this morning
Stocks
NIO, not lower lows today. Next support at 2.41.
IQ, not structures for a bottom yet.
TWLO, consolidation above 128.47 bodes well for TWLO, could be traded with protection versus this level, with a decent target at 153. Have always liked TWLO, and while above 128.47 should be an outperformer (EW1link).
SHAK, rejected at 1.382 but holding the 57 line which is critical for further advance to 82 (EW1link).
BYND, reports tomorrow, might develop an abc to 92 with some support at 88 (EW3link).
SFIX, has a problem with the 2.118 extension in this case 30.32, if truly bullish stop should be 29.88 preparing for 40.20 or new highs on this stock (EW1link).
Good Luck..
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