Market Clubhouse Morning Memo - May 19th, 2023 (Trade Strategy For SPY, TSLA, NVDA, GOOGL, MSFT, and META)

Today, Market Clubhouse is setting its sights on SPY, TSLA, NVDA, GOOGL, MSFT, and META. 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 during our daily Morning Call, 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.

SPDR S&P 500 ETF Trust SPY The SPY, a prominent ETF reflecting the S&P 500,  made a significant move on Thursday, breaking free from its previous ranges to record new highs for the year. Currently in the channel between 419.04 and 420.69. The market will be awaiting Jerome Powell's words on his panel with former Chair of the Federal Reserve Ben Bernanke at 11:00AM EST.

If the market sentiment remains bullish and SPY breaks out to the upside, we have targets of 421.15, 421.98, and 422.70. If the commentary from Powell is hawkish and shifts the tone in the markets, expect 419.04 to be tested with further downside targets of 418.17, 417.41, and 416.54.

Tesla Inc. TSLA Tesla, the renowned EV manufacturer, posted modest gains yesterday and rallied alongside the broader market. Currently in the channel between 176.57 and 177.76. If it can break out of 179 to the upside, there are targets of 179.68, 181.37, and 182.53.

If 176.57 breaks to the downside on bearish market action, we could see Tesla finding its way back into the channel of 175.16 and 174.08. Aggressive selling could possibly test 172.16.

Microsoft Corp. MSFT Microsoft, a tech titan, had a nice rally yesterday and based out mid-day at our key level of 316.04 which was shared in yesterday's memo. It ended up finishing the day higher at our next key level of 318.48 which was also shared in yesterday's report.

In the premarket session, Microsoft is once again basing out at 316.04 with the upside of the channel of 318.48. If the market is rallying today, expect upside targets of 320.05 and 321.51. However, if the session softens up and 316.04 is breaking to the downside, expect 313.61 and 311.91 to be tested.

NVIDIA Corporation NVDA Nvidia, the global tech giant, showed remarkable strength in yesterday's rally. Currently holding the support of 314.49. If there is continued buying in the stock today, it could expect to breakout to the upside with targets of 319.45 and 322.10.

If 315.49 can't hold as support, expect 311.80 to be revisited with 307.12 possible on a massive sell-off in the markets.

Meta Platforms Inc META Meta, formerly named Facebook, Inc., an American multinational technology conglomerate, had a very strong rally late in the day due to the broader market catching a bid as well as some chatter about AI and commencing with their planned layoffs announced earlier. The stock is currently tucked below our key level of 247.75. On a strong market today, we could see the upside potential bringing levels of 249.96 and 252.01.

However, if the market does indeed sell off today, targets of 244.89 and 241.73 could be revisited on a weak Friday session.

FINAL WORD Please do remember that today is MOPEX Friday. MOPEX, short for Monthly Options Expiration, refers to the date when options contracts for financial equities expire. These option contracts give the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified price within a certain timeframe. If the options are not exercised by the MOPEX, they become worthless and cease to exist. This event typically happens on the third Friday of each month.

For significant price movement in any stocks today, watch the options chain closely to observe any order flow into these contracts at out of the money strikes. An inordinate amount of buying in out of the money strikes could produce a gamma squeeze up or down in any of the names mentioned in today's memo. 

As we always say in Market Clubhouse, it's important to keep your head on a swivel. Good luck and Happy Friday to you all!

Professional trader RIPS, a seasoned veteran in equities, options, and futures trading, is at the heart of the Market Clubhouse, offering his insights and expertise in the fast-paced world of trading. Start your day with daily market analysis, a carefully selected watch list, and exclusive Market Clubhouse price levels, providing precise support and resistance indicators. Join RIPS in his live trading room every day at http://MarketClubhouse.club/Free where you can trade live with him and tap into his wealth of knowledge and experience.