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Weekly Catalyst Email - Fed Jackson Hole, SP500, Docusign, Moderna Downside, and Rite Aid Event

Written by Moneypig Trading Inc. on Aug 21, 2022


Just a quick disclaimer: Moneypig Trading (https://www.moneypigtrading.com/) is not a financial advisor. Please invest at your own risk. Also, we currently don't hold any positions discussed below.


Hello traders and investors!


Rome and Professor delivered a great week! Some highlights this week are:











Our Long term investment benchmarking account +5.6% YTD. Year high!!






3. Fed SOMA balance and market summary


Fed decreased its SOMA balance from $8.34 tn to $8.33 tn in the past 7 days. The decrease could elevate $TNX, financial, industrials stocks& lower the tech & growth stocks.




4. Individual Charts to watch


3.a. $SPY



Downside: 419.72, 418.12, 410.47

Upside: 422.14 breaks, room to 426.34


Comment:

$SPY uptrend breaks. The market is overbought and ready to pull back. $SPY has room to break down to the EMA supports.




3.b. $DOCU



Downside: 55.79, 59.47 strong weekly support

Upside: 69.14 EMA support


Comment: 4/8 EMA cross to the downside. Really heavy. Bad earnings and real estate transactions dropping so the demand for docusign has been dropping significantly


Possible Action (no action yet):

We have to see how much $DOCU gaps down on Monday


But $DOCU weekly 63p long is likely to give us 100% returns if $DOCU did test 59.47 at some point this week



3.c.$MRNA




Downside: 135.7 strong weekly support

Upside: 146.1 Friday close, 154.34 EMA support


Comment: 4/8 EMA cross to the downside. Really heavy. US government might start to cut COVID19 subsidies soon and the COVID19 vaccine demand is dropping (Wall Street Journal link)


Possible Action (no action yet):

We have to see how much $MRNA gaps down on Monday


But $MRNA weekly 141p long is likely to give us 100% returns if $MRNA did test 135.7 at some point this week


$MRNA weekly 141p option price chart




3.d.$RAD lotto for the Wednesday - August 24, 12 pm EST Investor Day




This stock will be very headline-driven at this point, so the technical levels below are just for your reference


Downside: 7.02 key daily support, then 6.23

Upside: 8.17, 8.97, 9.39 EMA supports, and room to $14.6 potential acquisition price


Comment: $RAD has been in more and more financially distressed due to vendor financing problems. “Spear Point Capital offered to buy the company for $14.60/share, or about $815 million, an offer that was rejected by the company.” However, Rite Aid jumped 10% amid acquistion speculation and $RAD had 2 weeks of follow through. Now $RAD is free falling together with all the other COVID19 related stocks as discussed before. We do expect this provides with us a great lotto opportunity this week, if there is any positive update on the acquisition.


Possible Action (no action yet):

$RAD weekly 7.5c long bidding at $0.06~0.10/con small size






Best,

Moneypig Trading Team




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Thank you for reading and have a great day!


Moneypig Trading team


Just a quick disclaimer: Moneypig Trading (https://www.moneypigtrading.com/) is not a financial advisor. Please invest at your own risk. Also, we currently don't hold any positions discussed above.

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