Good Morning Traders! In today's Morning Memo, we will discuss NQ, ES, SPY, QQQ, AAPL, MSFT, AMZN, NVDA, GOOGL, META, and TSLA.
Our proprietary formula, exclusive to RIPS, dictates these price levels. This dynamic equation takes into account price, volume, and options flow. These levels are updated every day and shared with our community, 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. Now, let's dive into the stock analysis:
E-mini Nasdaq-100 Futures (CME: NQ)
NQ is currently trading around 29540.75, back just under Monday's high of 29572.00 after pushing above it in the overnight session. Buyers reclaiming that high and holding it would put the futures above everything they traded on Monday. On a pullback, the healthy bids zone Rips is watching on air between 29377.50 and 29396.00 is the first area where buyers stepped in on Monday, and Monday's low at 29024.25 marks the bottom of the recent range if sellers take control. Rips trades NQ live at 8AM ET, so tune in to see how he plays the open.
E-mini S&P 500 Futures (CME: ES)
ES is currently trading around 7733.50, sitting just below Monday's high of 7739.50 after poking above it overnight. If buyers clear that high and hold it, the recovery from last week's lows stays on track. If price slips, the healthy bids zone Rips is watching on air between 7699.75 and 7704.00, which also holds the overnight low, is the first area to watch. Below that, Monday's low at 7651.75 is the deeper reference where the downside case would really open up. With the Fed meeting starting today and big tech earnings ahead, catch the live show for the full market read as the open develops.
SPDR S&P 500 ETF Trust (NYSEARCA: SPY)
SPY is currently trading around 767.25, a touch above Monday's 765.37 close and right under a ceiling that has stopped two recent sessions. Monday's high at 767.73 lines up almost exactly with last Thursday's 767.71 high, so that small band is the first real test this morning. If buyers clear it and hold above, price may work into the open gap toward 768.40, the October 21 low, and then 770.46, the October 19 high. A move that far would mean the index has recovered most of last week's slide.
If SPY slips back under 765.37 and cannot recover, the 765 strike, where put positioning is heavy, is the area buyers will want to defend. Losing it opens a path toward 763.47, Friday's high, and then Monday's 761.63 low. A quick return above 767.73 would weaken that downside case. Monday's share volume was the lightest of the last five sessions, so watch whether buyers show more conviction today if price tests that ceiling again.
Invesco QQQ Trust Series 1 (NASDAQ: QQQ)
QQQ is currently trading around 714.75, extending Monday's 1.1 percent rebound and pressing right into the 715.25 to 715.43 area that capped both Monday and last Thursday. If buyers reclaim it and hold, price may travel into the open gap toward 719.71, last Wednesday's low, where the 720 strike also carries heavy options positioning. Above that, 722.75 from October 20 is the next reference, though getting there would likely need help from the big tech names reporting this week.
If QQQ fades back below 712.20, Monday's close, the 710 strike, one of the heaviest open interest strikes on the board, sits just above Friday's 709.30 high and becomes the first area buyers need to defend. A break below 709.30 that cannot recover puts Monday's 705.58 low back in view. Holding above 715.43 would weaken that downside scenario. Monday's largest net options selling showed up in the 690 and 720 puts, while the largest single trade was in 700 puts for this Friday's expiration.
Apple Inc. (NASDAQ: AAPL)
AAPL is currently trading around 342.25, edging lower again after Monday's 1.1 percent drop. The first job for buyers is reclaiming 343.91, Monday's close, which sits right next to the 343.99 close from October 21. If they get back above that pair and hold it, price may work toward 345.75, Friday's low, with the 345 strike carrying heavy options positioning just below it. Above that, Monday's 347.09 high is the bigger hurdle and the level that would show buyers are back in control.
If AAPL loses 341.03, Monday's low, and cannot recover it, the next references are 338.83 and 338.70, the lows from October 21 and October 20, with the 340 strike, a heavy put strike, sitting just above them. A move back above 343.91 would weaken that downside path. On the news side, Apple is offering replacements for early iPhone Duo units with display problems, while Counterpoint Research said early iPhone 18 Pro sales are running ahead of last year's model. Apple reports earnings after the close on November 2.
Microsoft Corp. (NASDAQ: MSFT)
MSFT is currently trading around 528.75, giving back part of Monday's 1.5 percent gain ahead of its earnings report after the close on Wednesday. The 530 strike, where options positioning is heavy, sits just overhead and is the first marker to reclaim. If buyers push back through it and hold, price may return to Monday's 532.60 close and then the 533.25 to 533.60 band, where Monday's high and last Thursday's high both stopped rallies. Clearing that band would put 534.21, the October 20 high, in play.
If MSFT keeps slipping, 525.77, Friday's high, lines up with the 525 strike, the heaviest options strike close to price, and that is the area buyers need to defend. Losing it and failing to recover opens the door to 521.69, Monday's low, and then 520.30 from October 22. A move back above 530.00 would weaken that downside case. Monday's flow showed call buying at the 530 strike alongside put buying at 520 and 527.50, so positioning was split heading into the report.
Amazon.com Inc. (NASDAQ: AMZN)
AMZN is currently trading around 249.75, sitting just under the 250.00 area that capped the stock on both Friday and Monday. Friday's 250.01 high, last Thursday's 250.38 close and Monday's 250.79 high stack up tightly here, and the 250 strike carries some of the heaviest options positioning near price. If buyers clear 250.79 and hold it, the next clear chart reference above is 255.22, the October 19 low. Monday's options flow also leaned toward call buying at the 250 strike, which keeps that level front and center.
If AMZN slips back under 249.09, Monday's close, and cannot recover, 248.00 is the first support from last week, followed by Monday's 247.23 low and Friday's 246.45 low. A break below that cluster could open a slide toward 244.73, the late September low. A move back above 250.79 would weaken that downside case. Amazon reports earnings after the close on Thursday, so its AI and cloud spending commentary is the big catalyst later this week.
NVIDIA Corporation (NASDAQ: NVDA)
NVDA is currently trading around 217.25, building on Monday's 2.4 percent bounce after Nvidia agreed to invest 3 billion dollars in Meta's stock offering and expand its partnership to supply chips and systems for Meta's Muse AI platform. Price is pressing into 217.66 to 217.75, last Wednesday's low and Monday's high, with the 217.50 strike heavily loaded with open interest right in the middle. If buyers clear that pocket and hold, 218.88, last Thursday's high, is next, then 222.19 from October 21.
If NVDA fades back below 216.00, Monday's close, the 215 strike, where Monday's flow showed the heaviest net call buying, is the first area to watch. Losing that and failing to recover points toward 213.85, Friday's high, and then 212.61, Monday's low. A return above 217.75 would weaken that downside case. Nvidia's own report is not expected until late November, so this week the AI spending commentary from Microsoft, Alphabet and Amazon is the bigger catalyst to watch.
Alphabet Inc Class A (NASDAQ: GOOGL)
GOOGL is currently trading around 318.25, bouncing a little in premarket after Monday's 1.1 percent drop left it at 316.80, its lowest close since at least May. Alphabet has now fallen five sessions in a row, and communication services lagged the market on Monday. If buyers can build on this bounce, the first hurdle is 320.18 to 320.21, Friday's low and close, followed by Monday's 321.48 high. Reclaiming that area and holding it could open a move toward 324.53, Friday's high.
If GOOGL rolls back under 316.80 and slips through Monday's 316.60 low without recovering, there is little nearby chart history until 314.90, the July 23 low. A move back above 321.48 would weaken that downside case. Alphabet reports after the close on Wednesday, the same evening as Microsoft. Monday's options tape showed several large call trades at strikes from 330 to 365 expiring this Friday, so the report is clearly on traders' radar.
Meta Platforms Inc (NASDAQ: META)
META is currently trading around 631.25, just above Monday's 630.56 close after a 1.9 percent drop on the day Meta announced a large new stock offering to fund its AI buildout. Nvidia agreed to take 3 billion dollars of that offering, and shares are slightly higher premarket. For a recovery, buyers first need to reclaim 633.27, Friday's low, and hold it. That could open a move toward 642.62, Friday's close, with 647.69 to 648.04, the highs from Monday and Friday, as the larger ceiling.
If META slips back under 630.56 and then loses 627.80, Monday's low, without recovering, there is not much chart history close by, and the next clear reference is 609.74, the September 8 low. That is a lot of open space, so keep position size in mind. A return above 633.27 would weaken the downside case. Monday's options flow showed heavy put selling at the 645 strike and call buying at 642.50, but META still needs to prove it can hold above Monday's low first.
Tesla Inc. (NASDAQ: TSLA)
TSLA is currently trading around 396.75, adding to Monday's 5.2 percent jump after Barclays upgraded the stock to Overweight and raised its price target to 450.00. Price is already back near Monday's 397.27 high, so that is the first test. If buyers push through it and hold, the 400 strike, the heaviest open interest strike on Tesla's board, is the next level traders will watch, and it doubles as an obvious round number. A clean hold above 400.00 would keep the breakout story alive.
If TSLA stalls under 397.27 and drops back below 391.62, Monday's close, the next support sits at 388.84 to 388.86, the highs from October 21 and 22 that Monday's rally cleared. Losing that zone without a quick recovery points toward 386.47, the October 21 close, and then Monday's 383.73 low. A return above 397.27 would weaken the downside case. Monday's options flow showed the heaviest net put buying at the 395 strike, right around current price, so expect that area to stay busy early.
Final Word: Today's main scheduled data point is Durable Goods Orders at 8:30AM ET, which tracks September orders for long lasting goods like machinery, equipment and aircraft. It is a read on how much businesses are investing, and forecasts call for a solid rebound after a flat August. At 10:00AM ET, Conference Board Consumer Confidence and New Home Sales arrive, showing how households feel with oil still above 100 dollars a barrel. The Treasury also sells five year notes at 1:00PM ET, which matters with the 10 year yield sitting just under 5 percent.
The Federal Reserve begins its two day meeting today, with the rate decision due Wednesday at 2:00PM ET and the press conference at 2:30PM ET. Markets are pricing a high chance that rates stay unchanged after September's increase, and Fed officials are in their quiet period, so no Fed speakers are on today's schedule. Futures are modestly higher after Monday's chip led rally, and among the Magnificent 7, TSLA, NVDA and GOOGL are leading premarket while MSFT and AAPL lag. Microsoft and Alphabet report Wednesday after the close, and Amazon follows Thursday.
Monday's rally came on light share volume, so watch whether SPY and QQQ can clear Monday's highs with stronger participation, and whether buyers defend Monday's closes on the first pullback. Big tech leadership will tell the story ahead of the Fed and earnings. Good luck, trade safely, and have a great Tuesday!
You can catch Rips every Monday through Friday at 8AM ET streaming live for FREE on YouTube at https://www.youtube.com/@RipsTrades and on Kick at https://kick.com/rips where he breaks down the markets in real time and helps traders level up.