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Times like this are when SPY Daily triples in excitement.

My favorite company in the S&P 500 has hit markets with a bullish catalyst – right ahead of the Holidays.

This company is the #1 holding in the S&P 500, with a 2.5T Market Cap.

Notice the stock’s reaction upon news hitting markets?

As a veteran trader, I see an opportunity here.

The beauty of trading the SPDR S&P 500 ETF (SPY) is that I can be diversified without intentionally diversifying.

With the top 500 most influential companies in the country sprinkled into one ETF, I’m trading liquidity and diversification without assuming the risks of trading individual companies all the time (and I like that reward-to-risk).

But not all individual stocks in the S&P 500 are created equal.

Each of the 500 stocks in the S&P 500 has a holding percentage or accountability in the S&P 500.

Apple Inc (AAPL), a significant producer of hardware and software products primarily for the consumer market, has an S&P 500 weighting of 6.2% – the largest holding in the fund.

 

Just yesterday, Apple reported:

  • A ramp-up in its autonomous car timeline
  • Strong iPhone 13 demand (right before Christmas shopping sprees)

These are both positive catalysts for a company that wishes to scale and maintain a competitive edge in the marketplace, and Apple’s stock price soared.

Given Apple is the #1 holding in the SPDR S&P 500 ETF (SPY), it soared as well.

Here’s how yesterday’s Market Navigator trade of the day reacted to Apple’s bullish catalyst release…

SPY Nov 22 474 Call

It’s times like these traders like me get excited.

Heading into the holidays, I have:

  • Technical analysis
  • Liquidity
  • And catalysts…

I’m looking forward to it. Let’s start with today’s economic calendar.

While today’s is light, buckle up for FOMC minutes happening on Nov 24. That said, a SPY 60-minute chart, today’s chart of the day, will be my focus as I develop a trading plan ahead of the opening bell.

SPY 60-Minute Chart

SPY is showing volume-based support at 468.50. This level is just above SPY’s current trading price.

That said, I am bearish on SPY this morning due to:

  • Extended stochastics (momentum reading)

  • Today is expiration day

If SPY loses 468.50 today, I’ll be interested in trading SPY to the downside.

 

Think simple,

Davis Martin

 
Author:
Davis Martin

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