Market Clubhouse Morning Memo - August 2nd, 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

The SPY SPY is currently auctioning around our level of 537.20. For the bulls, we'd like to see a push higher initially to 538.30. If the price action remains strong above 538.30, we're looking for buyers to bring the price to our support level of 539.18. If 539.18 can hold up during regular trading hours, we'd expect to see a push up above to 540.07. Our high bull target on the day for SPY is 541.49.

If 537.20 is unable to be held as support, we're looking for the bears to test the strength of 536.31. If we see sellers present, the bears will look to test lower at 535.43. If that level is broken down on heavy selling we have a strong support level lower at 534.17. If today brings a violent sell-side session, our low bear target for the day is 532.56.

Invesco QQQ Trust Series 1

The Q's QQQ are currently auctioning around our key level of 452.14. For the bulls, we want to see buyers above 452.98. If this level can be held as support without failing, we're looking for 454.10 to be claimed as strong support. Continued buying strength could bring our level of 455.29 into play. If the auction is strong today, we're likely to see a test higher at 456.23. Our high bull target for the Q's today is 457.55.

If we do see the auction struggling to hold above 452.14 during regular trading hours today, we're looking for the bears to take control and aggressively sell lower to 450.98. If we see weakness, the bears should test lower at 449.36. If sellers are persistent, we expect to see a test of 447.73. If this level cannot hold as a strong level of support, we're expecting the bears to trade down to our low bear target on the day of 446.51.

Apple Inc.

Apple AAPL is currently auctioning around our level of 220.29. For the bulls we're looking for 220.97 to be held as support. The bulls would like to see the auction rally higher to 221.66. Continued bullish momentum could see the price rallying to 222.24. If the bulls reclaim control of Apple today, we're going to want to see a push higher to our high bull target on the day for Apple at 222.96.

If 220.29 cannot be held as support during regular trading hours, we're looking for a test lower at 219.19. On continued selling we're looking for the bears to bring the auction to the downside to 218.08. Continued selling pressure would bring 216.70 into play. If this level is broken down, we're looking for the bears to bring the auction down to our low bear target on the day for Apple at 215.25.

Microsoft Corp.

Microsoft MSFT is currently auctioning around our level of 409.69. For the bulls we're looking for the auction to hold strong above 410.64 and find the strength to rally to 411.72 and to have it held as support during regular trading hours. A hold above this key level of support could cause the price action to rally to the upside and target 413.14. Continued buying momentum could see the price reaching our high bull target on the day for Microsoft at 414.56.

If 409.69 cannot be held as support during regular trading hours, we're looking for the bears to probe 408.46 to the downside. If this level is broken down, we're looking for the bears to probe lower at 407.11. On continued downside pressure, the bears will likely push the price lower to 406.01. Our low bear target on the day for Microsoft is 404.92.

NVIDIA Corporation

NVIDIA NVDA is currently auctioning around our key level of 105.23. For the bulls, we want to see the auction push up to 106.30 and see this level reclaimed as a clearly defined area of support. To the upside we're looking for the bulls to push the price up to 107.51. Continued buying on the tape could see a healthy rally up to 109.12. The high bull target on the day for NVIDIA is 109.86.

If 105.23 cannot hold in today's session as a strong level of support, we're looking for the bears to test lower at 103.96. If this level is broken down and sellers are present, we're expecting a drop in the price down to 102.55. If the auction is weaker today, we expect to see a test of strength at 101.02. On continued selling pressure, the auction could visit our low bear target on the day for NVIDIA at 99.87.

Alphabet Inc Class A

Alphabet GOOGL is currently auctioning around our level of 167.04. For the bulls we're looking for 169.34 to be held as support and the auction to trade higher to 171.14. Continued bullish momentum could bring the auction to our high bull target of 172.28.

If 167.04 cannot be held as support during regular trading hours, we're looking for the bears to sell the price to the downside level of 165.41. If this level is broken down, we're looking for the bears to initially probe 163.79. On heavy selling, we're expecting the auction down to our low bear target on the day for Alphabet of 161.79.

Meta Platforms Inc

Meta META is currently auctioning around our level of 495.54. For the bulls we're looking for the auction to remain strong above 498.03 and to be held as support and the auction to trade higher to 500.83. A strong buyside auction could bring the price higher to 504.54. Continued bullish momentum could bring the auction to our high bull target of 508.25.

If 495.54 cannot be held as support during regular trading hours, we're looking for the bears to sell the price to the downside level of 492.33. Continued sellside pressure would see the price lower at 488.81. If this level is broken down, we're looking for the bears to sell Meta down to our low bear target of the day of 485.96.

Tesla Inc.

Tesla TSLA is currently auctioning around our key level of 216.31. To the upside we're looking for the bulls to push the price up to 217.78. Continued buying on the tape could see a healthy rally up to our key level of 219.39. If there is a bullish rally today in the broader market, it's likely we see Tesla testing higher at 220.65. If we see a large amount of buyers today, we could find the price action at the high bull target on the day for Tesla at 222.19.

If 216.31 cannot hold in today's session as a strong level of support, we're looking for a test lower at 213.88 with continued selling bringing 211.53 into play. If this level of 211.53 is broken down and sellers are present, we're expecting a drop in the price down to our low bear target on the day for Tesla of 209.51.

Final Word: Today's session is all about the Non-Farm Payrolls which are due out at 8:30 AM ET. This is being released alongside the Two-Month Payroll Net Revision, Unemployment Rate, Underemployment Rate, Labor Force Participation Rate, and Average Hourly Earnings all for July. These data releases will set the tone for the trading day. The Non-Farm Payrolls report, in particular, is a critical indicator of economic health, as it reflects the number of jobs added or lost in the economy, excluding the farming industry. A strong jobs report could signal economic growth and potentially lead to market rallies, while a weak report could raise concerns about economic stability and prompt sell-offs.

The Two-Month Payroll Net Revision provides a backward look at job gains or losses for the previous two months, offering a clearer picture of employment trends. The Unemployment Rate measures the percentage of the total workforce that is unemployed and actively seeking employment, serving as a key indicator of labor market health. The Underemployment Rate includes part-time workers who would prefer full-time positions and those marginally attached to the workforce, giving a broader view of labor market slack.

The Labor Force Participation Rate indicates the percentage of the working-age population that is either employed or actively seeking work, which is essential for understanding the overall engagement of the population in the labor market. Average Hourly Earnings data reflects wage growth, a crucial factor for gauging inflationary pressures and consumer spending power.

The release of these reports is expected to create significant volatility in the markets, as traders and investors react to the data. The results could influence expectations for future Federal Reserve policy decisions, particularly regarding interest rates. A robust set of data might increase the likelihood of rate hikes to curb inflation, while weaker numbers could support a more dovish stance from the Fed.

This should create a decent amount of volatility, so please trade safely. Good luck, keep your head on a swivel, and Happy Friday!

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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