Market Clubhouse Morning Memo - May 7th, 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 trading around our reference level of 516.58. For the bulls, a desirable scenario would be an initial rise to 517.39. Should the momentum sustain above this level, the next target for buyers would be the support level at 518.04. Holding this level during regular trading hours could set the stage for a further climb to 518.76. The optimistic target for SPY on the day is set at 519.71.

On the downside, if the SPY cannot maintain 516.58 as support, it could open the door for bearish action. The first lower target would be 515.68, and if bearish pressure continues, a further descent to 514.62 might occur. Breaking this down under heavy selling could lead to the next significant support at 513.76. In a scenario dominated by sellers, the bearish target for the day would be at 512.91.

Invesco QQQ Trust Series 1

The QQQ QQQ, also known as the Q's, is trading around a pivotal level of 438.89. For a bullish outlook, holding above 440.00 is crucial. If sustained, the level of 440.78 could then be established as strong support, potentially leading to a rise to 441.56. If today’s market conditions favor the bulls, a move up to 442.53 could be in sight, with a high target of 444.09.

Conversely, if the QQQ struggles to stay above 438.89, the bears might take control. A downward movement could test the 437.47 mark. Showing weakness here could lead to further tests at 436.58, and if the selling pressure persists, a drop to 435.88 might follow. Failing to maintain this level could see the bears pushing down to a daily low target of 434.76.

Apple Inc.

Apple's AAPL stock is hovering around 183.38. From a bullish perspective, maintaining this as a support level is key. Should this hold, the next target would be 184.09, followed by a potential rise to 184.59. If the bullish trend dominates today's session, we could see a surge towards a high target of 184.96.

If Apple fails to keep 183.38 as support, the initial lower target to watch would be 182.96. Continuation of a downward trend might bring it to 182.27, and further pressure could push it down to 181.25. Should this level not withstand the selling force, the bears might drive the stock towards the day’s bearish target of 180.60.

Microsoft Corp.

Microsoft MSFT is trading near 413.14. Bullish traders would look for the price to firmly hold above this level, aiming for a rally towards 414.56. If this level is maintained as support, the upward movement could extend to 416.32, with a potential to reach a high target of 417.25 for the day.

On the flip side, if 413.14 fails to act as support, the price could be driven down to 411.72. A break below this could lead to further bearish tests at 410.64. Persistent downward pressure might then lead to 409.69, setting up a scenario for reaching the day's low target of 408.46.

NVIDIA Corporation

NVIDIA NVDA is positioned around 913.30. For the bulls, a key objective would be to drive the price up to 917.98 and establish it as a clear support. Further upward movements could target 922.67, and if buying remains robust, we could see a rise to 928.47. The highest bullish target for the day is envisaged at 937.84.

If NVIDIA fails to hold 913.30 as a solid base, bearish objectives would include a drop to 907.51. Breaking this level could see a further fall to 903.25. If the market weakens further, 898.13 could be tested, with the ultimate bearish target for the day set at 890.55.

Alphabet Inc Class A

Alphabet GOOGL , currently at 167.04, would need to hold this level as support for the bulls to aim higher at 169.34. If the market conditions favor bullish trends, we might see a further climb to a high target of 171.14.

Conversely, if 167.04 does not hold, bearish dynamics could come into play, pushing the price down to 165.41. A break below this could prompt tests at 163.79, with a potential severe downturn leading to a low target of 161.79.

Meta Platforms Inc

Meta META is trading around 462.20. Bulls would hope to keep this level as firm support, setting sights on 464.57 as the next target. Strong buying could then drive the price higher to 468.38, with the most optimistic scenario reaching a high of 470.28.

Should Meta not sustain 462.20 as support, a bearish descent to 458.59 could be likely. Further selling pressure could push the price down to 455.87. A significant breach here might result in reaching the day’s low bear target of 453.45.

Tesla Inc.

Tesla's TSLA current level is 182.53. Bulls are looking to drive the price up to 184.10. Strong buying could potentially boost it to 186.10. An overall bullish market today might see Tesla reaching higher levels up to 189.22, with the highest bull target set at 191.52.

If the support at 182.53 does not hold, a downturn to 179.79 may occur. Continued bearish trends might bring the price down further to 176.34. If this level is compromised, the lowest bear target for today would be 172.61.

Final Word:  Today’s trading session is marked by a light schedule concerning economic data, which may influence market sentiment and volatility. At 10 AM ET, we will see the release of the TIPP Economic Optimism numbers for May. This indicator reflects consumer confidence and can have a substantial impact on market trends, particularly affecting sectors sensitive to changes in consumer outlook.

Following this, at 1 PM, the Treasury is scheduled to conduct a 3 Year Note Auction. The results of this auction could provide insights into investor sentiment towards long-term U.S. debt, potentially affecting interest rates and financial markets broadly.

Later in the afternoon, at 3 PM, the Consumer Credit report for March will be released. This report, which details the changes in the amounts of loans extended to consumers, can shed light on consumer spending habits and financial health. Significant deviations from expected values could sway market conditions, particularly influencing stocks in the consumer discretionary sector.

Additionally, today holds a notable event from Apple, which is hosting an event that might introduce new products or updates. Events like these can cause significant movements in the stock prices of the involved companies and their suppliers or competitors based on the market’s reception of the news.

Also noteworthy is the scheduled speech by Neel Kashkari at 11:30 AM ET. Though he is not a current voting member of the Federal Reserve's policy-making committee, his perspectives on the economy can influence market expectations regarding future monetary policy, especially if his comments hint at any changes in stance towards interest rates or economic outlook.

Overall, while the day might seem quiet in terms of data volume, the events on schedule are significant enough to potentially lead to notable shifts in market sentiment and trading behavior. As always, traders should remain vigilant and consider these elements when planning their trading strategies for the day. Good luck!

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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This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.