Tom’s Weekly Newsletter June 23, 2021 NASDAQ

Tom's Weekly Newsletter June 23, 2021 NASDAQ is the star of the three big indeces

The Dow Jones Industrial Average isn't considered the truest gauge of what's going on with the economy anymore by many investors / money managers. The S&P500 is the index that has more credibility and more reflects our economy and is the benchmark many money managers compare their returns to. Neither of these are as strong as the NASDAQ right now. The NASDAQ just reached / recorded its 16th closing high of 2021 closing at a record 14,271.73. It did establish a record intraday peak at 14,317.66. When one thinks NASDAQ, they think FANG. The stocks that comprise this batch of stocks is Facebook, Amazon, Apple, Netflix, and Alphabet (the security formerly known as Google and why the G in FANG is still being used). If you want to find opportunities on any of these from an investment perspective study their fundamentals and keep an eye on their earnings and monitor any new products (if any) they may have in the works. From a traders (option traders) perspective check out the technicals in their charts. Most of them are at or near their highs so you'd have to believe in them higher at this juncture. The only one I see near a possible support level is NFLX. Tom Gentile C1P Chief 1-Percenter

Copyright 2021, Tom Gentile, Tom's Trading Room, LLC - All rights reserved.

Four Corners of the Market *** 999 day Fibonacci Look back*** SPY - SPDR S&P 500 ETF Trust

My curiosity got the best of me. I wondered what these corners of the market I monitor to gauge directional sentiment for the market(s) look like at the greatest number of days I can look back in my tools, which is 999 days ? and what they look like with that far back a view from a Fibonacci chart view. We know SPY is just off its highs currently, but it has had a phenomenal bull run from the March 2020 lows. Run a Fibonacci chart on the SPY from the lows to current date to look at Fibonacci retracement numbers for it to at least see where retracement levels are for this massive up leg.

Copyright 2021, Tom Gentile, Tom's Trading Room, LLC - All rights reserved.

TLT - iShares 20+ Year Treasury Bond ETF

Blue Box with a D in it is Dividend Over the past 999 days we see a test of 61.8% Fibonacci retracement level. Now, Fibonacci just like any other technical indicator work if enough investors / traders base their decisions on acquiring or selling securities on them. Funny how these levels tend to work out, though. If you want to use prior fib levels as next target prices then the price of 148.81 could be a next upside target for TLT.

Copyright 2021, Tom Gentile, Tom's Trading Room, LLC - All rights reserved.

UUP - Invesco DB US Dollar Index Bullish Fund

Remember, I do not trade the UUP. I use it to gauge directional sentiment for equities. What's good for UUP isn't so much so for equities and vice versa. With that being said UUP has formed a base or a support it seems at the bottom part of the orange box I have drawn in. It has bounced off it and if it tried to go higher still I do see the previous price peak at 25 as potential resistance.

Copyright 2021, Tom Gentile, Tom's Trading Room, LLC - All rights reserved.

USO - United States Oil Fund, LP

USO has been viewed as an ETF in a bullish run. And it has been for the year. But when you expand the number of days view or look back you can see it is in an overall longer `down' trend. I teach and have written special reports the past few years at least about the seasonal bullish period of time each year for oil (and energy). Amidst up and down trends overall, mid-Feb to mid-July is this typically bullish period each year. I say this as I point out the 38.2% fib level may be a price USO reaches. Since we have 3-4 weeks to go before the bullish seasonal time frame ends I wonder if USO has the capability to at least reach that.

Copyright 2021, Tom Gentile, Tom's Trading Room, LLC - All rights reserved.

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