Market Clubhouse Morning Memo - May 23rd, 2023 (Trade Strategy For SPY, TSLA, AAPL, META, And NVDA)

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

It's important to note that we have Jerome Powell speaking today at 12:30PM EST with the coalition in the house. He is expected to discuss the debt ceiling as well as inflation and the upcoming FOMC rate decision. This is certain to bring some volatility into the markets. It's going to be crucial to keep your head on a swivel and potentially avoid trading during this time altogether if you don't have experience with trading during news-based events like this.

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

SPY, a prominent ETF tracking the S&P 500, was extremely choppy yesterday with very limited range due to the ongoing discussions about the debt ceiling. There was breaking news early on in the session about a possible explosion near the US pentagon. On this headline, the SPY began to sell off rapidly, fortunately, this event quickly proved to be a hoax that was driven by an AI generated image.

We are currently watching SPY between the channels 417.47 and 418.17. 417.47 has offered a large amount of support for the SPY in the past two sessions and we would expect it to continue to do so. If we see some bullish buying across the board today, and Jerome Powell's remarks aren't extremely hawkish, we could see upside targets of 419.04, 4520.05 and ultimately a test of 420.69.

However, if the commentary out of Powell takes a hawkish turn, downside targets of 416.54 and 415.71 could be tested during the regular trading hours session.

Tesla Inc. TSLA

Tesla, the renowned EV manufacturer, had an incredible day of bullish buying all day during Monday's session. It finally topped out towards the close at our Market Clubhouse level of 189.22.

If we see 189.22 reclaimed and held today, there are upside targets of 191.52 and 192.88.

If Tesla loses a little bit of strength in the early Tuesday session, we expect it to bottom out around 186.10. However, if there is further weakness on the tape, expect 184.10 and 182.53 to possibly be tested to the downside.

Apple Inc. AAPL

Multinational technology company had an extremely choppy trade yesterday along with the SPX. We are currently seeing it base out around the Clubhouse level of 173.24. If this level acts as support today and the overall tone of the market is bullish, expect 174.05 and 175.09 to be tested with an ultimate bullish target of 176.29.

If we do see bearish weakness across the market and a hawkish tone out of Powell, the downside targets are 172.35 and 171.66.

Meta Platforms Inc META

Meta, formerly named Facebook, Inc., an American multinational technology conglomerate, sold off on Monday's session but has based out at our level of 247.75. If this level holds as support, expect the upside to be tested at levels of 249.96 and 252.01.

If the trade in Meta remains soft, expect the downside targets of 244.89 and ultimately 241.73 to be tested.

NVIDIA Corporation NVDA

Nvidia, the global tech giant, has retained support at our level of 311.80. If that level continues to hold strong, expect the upside target of 315.49 to be tested. An upside break of that level could potentially bring 319.45.

If there is selling across the market and 311.80 cannot hold, expect 307.12 to be tested for a new downside support level. Remember that NVIDIA has earnings this week on Wednesday May 24th after the close. This will spur a dramatic increase in the cost of premium in the NVIDIA options chain leading up to their earnings report. It can be more advantageous to the sharper trader to wait until after the earnings report to trade the options chain of NVIDIA.

Final Word: Today's session could bring a lot of volatility with Jerome Powell meeting today at 12:30PM EST with the coalition in the house. If you have no intentions of trading the price action today, it would be a great day to take mental trades and journal the results. This process will allow you to potentially grow your skillset as a trader without putting your own capital at risk. Good luck everyone!

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.