Prime Set Up for Financials, Plus SPY & QQQ
It is good to be back at all-time highs, markets look ready for more upside.
Welcome to all of the new subscribers to ATE! We are now over 1,600 strong and the opportunities to make money in this market are endless.
It is good to be back!
I never took my eyes off of the charts, but the time away from social media and writing was necessary and now it is time to get back to it.
Meme stocks are also back but you won’t see me trading them too often. Not my style, but all the power to those that are making money in those names. Big moves!
The focus here continues to be on quality set ups, identifying profit targets, and maintaining tight risk management. There are definitely charts that are getting my attention.
And you know what I like to say, there are always more trading opportunities on the way.
To that end, I’ve got more trade ideas to share this week for upgraded subscribers and I’m excited to get back to it!
For now, let’s take a look at SPY, QQQ, and a chart that is poised for a breakout. The financial sector, which is surprising!
First up, the daily candles for SPY.
After an unrelenting push to 524.61, SPY cooled off for a few weeks and just enough to fill the gap formed Feb 22nd.
You will often see a reversal after a gap is filled and that is exactly what we got. Keep an eye out for that type of action. It is not a guarantee, but trading the reversal after a gap fill is a quality trade set up.
Following the bounce, SPY made a higher low and then ripped back to test the previous high of 524.61.
If this level can be broken, the next targets are 551.50 and 568.13.
The chart for QQQ is a little more volatile, but is in a similar spot
RSI is looking really good, climbing in lockstep with the recent push back to 448.64. Now the Qs are at a tough resistance level.
It does feel like momentum has been regained and if that holds, a push through resistance would quickly target 473.42 and 488.74 next.
While both SPY and QQQ look promising, the chart that really stands out is for XLF. The financial sector is ready to rip.
The recent lows form a trendline from the October 2023 lows with the candles bouncing nicely higher.
Higher lows have been established after the recent sell off and the level that the candles need to power through is 42.22. I think we see exactly that.
The ideal trade set up is a retest of this level after a clean break above. If this level turns into support, taking a long position on the bounce could lead to big profits.
I like this set up and will be looking for trades in this sector over the next couple of months.
But that won’t be my only focus!
I am looking closely at CRWD, ANET, and NVT to name a few.
Let me know what tickers interest you, if there are any charts you are watching, or if you have any questions.
I appreciate all of you. Thanks again for subscribing to A Trader’s Education.
Have a great day of trading ahead!
-Nate
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This service is for general informational and educational purposes only and is not intended to constitute legal, tax, accounting or investment advice. These are my opinions and observations only. I am not a financial advisor.
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Nice to see you again!