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 28853.25, down about 2.4 percent overnight after Amazon and Intel results reignited worries about AI spending. The drop has taken futures well below Thursday's 29111.00 low, so the prior session's range from 29111.00 up to 29794.25 now sits entirely overhead. The line in the sand Rips is watching on air is 28821.50, the overnight low, just under current price. NQ is also trading far below its gamma flip near 30213.25, and below that line ranges have tended to be wider and moves can run further. 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 7672.50, down about 1.1 percent and holding up much better than NQ as the selling concentrates in tech. Price has slipped below Thursday's 7709.50 low, leaving Thursday's range up to 7773.75 overhead, and reclaiming 7709.50 would be the first sign of repair. The line in the sand Rips is watching on air is 7665.25, the overnight low, only a few points below. ES is trading below its gamma flip near 7751.00, and below the flip ranges have tended to be wider and moves can run further. 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 761.50, down about 1 percent and sitting right on Monday's 761.63 low as the tech selloff spills into the broader market. If buyers defend this area and reclaim 761.63, the first recovery reference is 763.47, last Friday's high. Above that, the 765 strike, one of the heaviest open interest strikes near price, lines up with Tuesday's 765.21 low, and getting back over Thursday's 766.62 low would mean most of the overnight gap has been recovered.
If SPY breaks below 761.17, the October 22 low, and cannot recover, 760.64, the October 16 low, is the next shelf. Below that, the 758.68 to 758.79 area, where SPY bottomed on October 23 and October 1, marks the low end of the past month's range, and losing it would open the door toward the 750 strike, where put positioning is heavy. A return above 763.47 would weaken the downside scenario. Share volume picked up Thursday, so watch whether sellers keep that participation going on the last trading day of October.
Invesco QQQ Trust Series 1 (NASDAQ: QQQ)
QQQ is currently trading around 698.25, down about 2.4 percent and at its lowest level since early August after Amazon's report added to this week's pressure on big tech. The first job for buyers is reclaiming 700.00, where the September 16 low lines up with the 700 strike, the heaviest open interest strike on the board. If they do and hold it, price may work back toward 701.16 and 701.90, the lows from October 23 and October 22, and then 705.58, Monday's low.
If QQQ stays under 700.00, the next reference is 695.77, the July 31 high, followed by the 690 strike, the second heaviest open interest strike nearby. Below that sits 685.82, the August 3 low, which would leave QQQ about 4 percent under Thursday's close. A return above 701.90 would weaken the downside scenario. With AMZN, NVDA and TSLA all trading noticeably lower premarket, the index needs some help from its biggest weights for any bounce to stick, and the 8:30AM ET data could decide whether that help arrives early.
Apple Inc. (NASDAQ: AAPL)
AAPL is currently trading around 345.25, down about 1 percent and giving back Thursday's gain as the rest of big tech slides. Buyers first need to recover 345.75, the October 23 low, and then Thursday's 347.30 low. If they reclaim that area and hold it, Thursday's 348.91 close and the 350 strike, the heaviest open interest strike on Apple's board, come next, with Thursday's 351.43 high just beyond. Getting back above 351.43 would put the stock near the top of its recent range.
If AAPL slips under the 345 strike and cannot recover, Wednesday's 343.83 close and 343.52 low are the next areas to watch. Below that, Tuesday's 342.39 low and Monday's 341.03 low mark the bottom of this week's range. A return above 347.30 would weaken the downside scenario. Thursday's options flow showed the most net put selling at the 350 strike, about 2.5 million dollars, and Apple reports quarterly results after the close on Monday, November 2, so traders may stay cautious heading into the weekend.
Microsoft Corp. (NASDAQ: MSFT)
MSFT is currently trading around 527.00, down about 0.6 percent after Thursday's earnings pop faded hard, with the stock opening near 540.22 and closing at 530.14. Price is holding just above Wednesday's 526.14 low, which makes that the first area for buyers to defend. If they do, the first recovery levels are 528.33, Tuesday's low, and the 530 strike next to Thursday's 530.14 close. Clearing that area and holding it would put Wednesday's 535.00 high back in play, with the 540 strike, the heaviest open interest strike, sitting just below Thursday's 541.29 high.
If MSFT breaks below 526.14 and the 525 strike just beneath it, Monday's 521.69 low and the October 22 low at 520.30 are the next references. Below those, Thursday's 519.56 low marks the bottom of the earnings day swing, and losing it would leave the stock near last Friday's 515.70 low. A return above 530.14 would weaken the downside scenario. Microsoft is one of the steadier Magnificent 7 names this morning, so watch whether it keeps acting as a cushion for the Nasdaq.
Amazon.com Inc. (NASDAQ: AMZN)
AMZN is currently trading around 227.50, down about 6.6 percent after quarterly results missed expectations, guidance for the holiday quarter came in cautious, and the company stuck with a spending plan of about 220 billion dollars for this year. That puts the stock at its lowest level since late July, well below Thursday's 241.24 low. If buyers can stabilize price, the first recovery reference is the 230 strike, where put positioning is heavy, followed by 231.06, the July 30 low, and 232.82, the July 29 high.
If AMZN breaks below the July 29 low at 226.16 and cannot recover, 225.55, the June 25 low, and the 225 strike just below it are the next areas to watch. Below that, the 220 strike, the heaviest put strike on Amazon's board, is the deeper level. A return above 232.82 would weaken the downside scenario. Shares had already fallen 4.2 percent Thursday ahead of the report on more than twice their usual volume, and moves after a gap this large can be wide in both directions.
NVIDIA Corporation (NASDAQ: NVDA)
NVDA is currently trading around 207.25, down nearly 3 percent as chip and AI infrastructure stocks extend their slide after Intel's weak forecast and Amazon's results. Price is sitting on the August 24 low at 207.25, so that is the first level to watch. If buyers defend it, the recovery references are 208.93, the September 14 low, and then the 210 strike, a heavy open interest strike that lines up with the October 23 low at 210.18. Above that, 211.26, the October 22 low, and Thursday's 212.08 low would come back into view.
If NVDA breaks below 207.25 and cannot recover, the 205 strike, one of the heavier put strikes, is the next area, followed by 204.95 and 204.81, the July 22 and July 24 lows. Below those, the 200 strike, one of the heaviest put strikes on the board, is the deeper level. A return above 210.18 would weaken the downside scenario. Nvidia reports quarterly results on November 17, so until then the stock may keep trading with the broader AI story.
Alphabet Inc Class A (NASDAQ: GOOGL)
GOOGL is currently trading around 282.25, down about 0.5 percent after Thursday's 12.6 percent plunge on its quarterly results, a drop that came on roughly five times its usual volume and left the stock at its lowest level since the end of March. If buyers hold this area, the first recovery reference is Thursday's 283.82 close, then the 285 strike, a heavy open interest strike. Above that, the 287.95 to 288.33 area, where the stock topped out on March 26, March 31 and Thursday, is the bigger hurdle.
If GOOGL breaks below Thursday's 280.36 low and the 280 strike, the heaviest put strike on its board, the next references are 278.50, the March 26 low, and 277.09, the March 31 low. Below those, the 275 strike and the March 27 low at 273.95 mark a deeper area. A return above 285.00 would weaken the downside scenario. GOOGL is one of the steadier megacaps this morning, but after a drop this size, a quiet premarket can still turn into a wide session once the regular market opens.
Meta Platforms Inc (NASDAQ: META)
META is currently trading around 615.25, down about 1.5 percent and giving back part of Thursday's 2 percent bounce. Thursday's 616.80 low sits just overhead, so the first job for buyers is reclaiming it. If they do, the 619.21 to 620.19 area, Tuesday's low and close, comes next, followed by the 625 strike, one of the heaviest open interest strikes, right beside Thursday's 624.52 close. Clearing that cluster would put Tuesday's 628.46 high back in view.
If META slips under Wednesday's 612.49 close and then loses the 610 strike and Wednesday's 609.00 low, the next references are 605.27 and 604.35, the September 4 and September 3 lows. Below those, the 600 strike, the heaviest put strike near price, is the deeper level. A return above 620.19 would weaken the downside scenario. Meta is down about 12 percent since its October 21 report, and it keeps trading with the broader worries about how much big tech is spending on AI.
Tesla Inc. (NASDAQ: TSLA)
TSLA is currently trading around 394.00, down about 2.3 percent and slipping below the 395 strike and Tuesday's 395.25 low as growth stocks sell off. If buyers reclaim 395.25 and hold it, the 397.18 to 397.27 area, Wednesday's low and Monday's high, is the first hurdle. Above that, the 400 strike, the heaviest open interest strike near price, sits right beside Thursday's 400.50 low, and getting back there would recover most of the overnight drop.
If TSLA cannot recover 395.25, Monday's 391.62 close and the 390 strike are the next areas to watch. Below those, Monday's 383.73 low marks where this week's breakout began, with the 380 strike, one of the heavier put strikes, just underneath. A return above 397.27 would weaken the downside scenario. Tesla has been one of October's strongest Magnificent 7 names, so watch whether dip buyers show up for it the way they did earlier in the week.
Final Word: Today's main event is the Employment Cost Index at 8:30AM ET. This third quarter report measures how fast wages and benefits are rising for American workers, and it is expected to show a 0.8 percent increase after 0.9 percent last quarter. Labor costs feed into inflation, so a hotter number could push interest rates higher, while a cooler one would ease some pressure. The Chicago PMI at 9:45AM ET follows, expected near 56.1 after 58.8, and St. Louis Fed President Alberto Musalem is scheduled to speak at 12:30PM ET. Exxon Mobil, Chevron and AbbVie report before the open.
Overnight, Amazon and Intel results deepened worries that heavy spending on AI is running ahead of the payoff, sending NQ down about 2.4 percent versus roughly 1.1 percent for ES. Every Magnificent 7 name is lower premarket, with AMZN, NVDA and TSLA lagging while GOOGL and MSFT hold up best. Intel is down more than 20 percent after a weak forecast. Treasuries are rallying, and oil keeps climbing, with Brent near 117 dollars a barrel after Houthi attacks on Saudi Arabia raised supply worries.
Today is the last trading day of October, and Apple reports after the close on Monday. Watch whether QQQ can win back 700.00 and whether SPY can hold the 758.68 area if early selling continues, and pay attention to volume, which picked up Thursday. With NQ and ES both below their gamma flips, wide swings would not be surprising, but if buyers defend the overnight lows on the first pullback, the selling may calm into the weekend. Good luck, trade safely, and have a great Friday and a relaxing weekend!
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.