Market Clubhouse Morning Memo - May 3rd, 2024 (Trade Strategy For SPY, QQQ, AAPL, MSFT, NVDA, GOOGL, META And TSLA)

Good Morning Traders! In today's Market Clubhouse Morning Memo, we will discuss SPY, QQQ, AAPL, MSFT, NVDA, GOOGL, META, and TSLA.

Our proprietary formula, exclusive to Market Clubhouse, dictates these price levels. This dynamic equation takes into account price, volume, and options flow. These levels are updated every day and shared with all Clubhouse Members, prior to the opening of the market.

We recommend closely monitoring these stocks, and be prepared to leverage potential breakouts or reversals. As always, stay alert and ready to adjust your tactics based on the market's pulse to optimize your trading gains. Now, let's dive into the stock analysis:

SPDR S&P 500 ETF Trust

SPY The SPY is currently auctioning around our level of 506.71. For the bulls, we'd like to see a push higher initially to 507.52. If the price action remains strong above 507.52, we're looking for buyers to bring the price to our support level of 508.34. If 508.34 can hold up during regular trading hours, we'd expect to see a push up above to 509.49. Our high bull target on the day for SPY is 510.95.

However, if 506.71 cannot sustain as a support level, the downward pressure might see bears driving the price to 505.32. If bearish momentum continues, the next key level to watch is 503.95. Breaking past this could lead to a test of stronger support at 502.85. If the selling intensifies, our bearish target for the day is set at 501.74.

Invesco QQQ Trust Series 1

QQQ The QQQs are currently auctioning around our key level of 429.40. For the bulls, maintaining levels above 430.16 is crucial. If this level can be held as support without failing, we're looking for 431.82 to be claimed as strong support. Continued buying strength could bring our level of 432.84 into play. If the auction is strong today, we're likely to see a test higher at 433.64. Our high bull target for the Q's today is 434.76.

On the other hand, if the auction struggles to hold above 429.40 during regular trading hours, bears might take control and push lower to 427.32. Observing weakness at this level could lead the bears to test 425.77. If sellers remain persistent, we anticipate a further decline to 424.04. Should this level not hold, our bear day's target is 422.16.

Apple Inc.

AAPL Apple is currently auctioning around our level of 182.96. For the bulls, maintaining 182.96 as support is key. We're looking for an initial push to 183.38. With continued bullish momentum, the next target is 184.09. If buying activity sustains, we might see an aggressive push to our high bull target for the day at 184.96.

Conversely, if 182.96 fails as support during regular trading hours, the bears might drive the price to 182.27. With sustained selling, the next levels to watch are 181.25 and 180.60. Should selling pressure break these supports, our low bear target for the day for Apple is 180.10.

Microsoft Corp.

Microsoft MSFT is currently auctioning around our level of 399.21. For the bulls, holding the auction above 400.30 is essential, aiming next for 401.39 to be sustained as support. If this is achieved, bullish momentum might drive the price towards 402.74. Sustaining buyer interest could push Microsoft's stock to our high bull target of 404.92.

Should the support at 399.21 fail to hold, bears might test lower levels starting at 398.38. A breakdown here could lead to a further test at 397.65. If bearish trends continue, the next critical support is at 395.68. Our bearish end-of-day target for Microsoft is 394.46.

NVIDIA Corporation

NVIDIA NVDA is currently auctioning around our key level of 865.62. Bulls are expected to push the price to 877.25 and establish it as a firm area of support. From there, the upward targets are 882.97 and 890.55, with an ultimate high bull target for the day at 898.13.

If the support at 865.62 cannot hold, bears may look to push lower to 858.43. A breakdown here might lead to further declines to 852.61 and 846.80. If bearish momentum is sustained, our low target for the day is set at 842.42.

Alphabet Inc Class A

Alphabet GOOGL is currently auctioning around our level of 167.04. Bulls need to maintain this level as support, aiming to push higher to 169.34. If buying interest continues, the price might rally to our high bull target of 171.14.

If 167.04 fails as support during regular trading hours, bears may lower the price to 165.41. If this level breaks down, further tests at 163.79 might occur. In a scenario where selling intensifies, our bearish target for Alphabet on the day is 161.79.

Meta Platforms Inc

Meta META is currently auctioning around our level of 441.35. Bulls aim to hold this level as support, pushing the price higher to 446.90. If bullish sentiment remains strong, the next targets are 450.55 and our high bull target of 453.45.

If 441.35 fails to hold as support, the bears might push the price lower to 436.87. Persistent selling could see further declines to 432.39. If these levels cannot be maintained, our bear day's low target for Meta is 429.01.

Tesla Inc.

Tesla TSLA is currently auctioning around our key level of 179.79. Bulls aim to push the price to 182.53. If bullish momentum holds, further increases to 184.10 and 186.10 are possible, with a day's high target of 189.22.

If 179.79 fails to hold as support, bears could lower the price to 176.34, followed by 172.61. If this level breaks, our low bear target for Tesla on the day is 169.70.

Final Word:  As we wrap up today's trading session, it's important to stay alert for several pivotal economic reports that are poised to influence market dynamics. At 8:30 AM ET, we'll see the release of the Non-Farm Payrolls for April, a critical measure of employment growth outside the agricultural sector, which has historically been a significant market mover. Coupled with this, the Average Hourly Earnings data will provide insights into wage trends, an essential indicator for assessing inflation pressures.

Furthermore, at 10:00 AM ET, the ISM Services Index will be published, offering a snapshot of the non-manufacturing sector's health, which makes up the majority of the U.S. economy. This report includes sub-indices such as Prices Paid, Employment, and New Orders, each of which can provide valuable clues about the future direction of economic activity and policy adjustments. The Prices Paid component, in particular, is a closely watched indicator for inflationary trends.

Given these significant data releases, we anticipate a heightened level of volatility in today's trading session. Traders should be prepared for potential swings and ensure that they are leveraging sound risk management strategies. Today's data could not only shape market sentiment for the day but also set the tone for the upcoming weeks, especially in terms of how the Federal Reserve might interpret these indicators in the context of their monetary policy decisions.

The Morning Memo is curated by RIPS, a pro trader with years of experience in equities, options, and futures trading. RIPS is at the heart of the exclusive Market Clubhouse community, offering his insights, expertise, and real-time mentorship.

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