We’ve got a tale of two different indexes right now.
The QQQs have been a real drag. The moving averages are all mixed up, with the 8 on the bottom, the 21 on top and the 55 in the middle, and they look like they want to roll lower. There’s a daily squeeze on the Qs that has already fired to the downside.
The SPY is a completely different story. Those moving averages have rolled over a little bit, but nowhere near the extent of the Qs, and we’re just kind of hanging out. That daily squeeze has not fired, we’re holding the 55 EMA, and the structure looks totally fine.
Honestly, my favorite market is one where the Nasdaq is leading. That’s the market that fits my eye, and this one hasn’t fit my eye for about a month now.
We’re in the summer doldrums. It’s been a tricky month for swing trading, and ideally we get through this stretch into August and see how things resolve.
That doesn’t mean there’s nothing to do. It means you have to go find the charts that aren’t participating in the mess.
So I ran S.A.M., our AI scanner, and sorted the entire S&P 500 by the most A+ squeezes on the board.
Wells Fargo came up first.
WFC has squeezes on multiple different time frames, and the daily just needs a momentum shift to get moving. It’s a lower ATR name, so not too terribly volatile, which suits this kind of setup. If we could wait and get a pickup around 86, right at the daily 21 EMA, I think that would be ideal.
We’re not looking for a move to 200 here. This is a nice solid swing trade with room up into the mid 90s.
The second one came off my own watch list, and this chart is gorgeous.
Snowflake is sitting on a big, beautiful cup and handle with squeezes on multiple time frames. It looks really, really good. Earnings are coming at the end of August, which changes how I want to structure it, because I want to be positioned for the run into that print rather than caught holding through it.
Two names, two different setups, both holding up while the Nasdaq does what it’s been doing.
I walked through both charts and explained exactly how I’m playing them, including the strikes and expirations I’m using on each.
