Daily Plan 10.11.23
Markets Close Higher - What’s Next?
Good evening, readers!
Indices launched off both long levels on the Emini and Nasdaq, successfully reaching their respective long targets. The Emini surged by +30 handles, hitting its initial target, and then added another +22 handles during the cash session. On the other hand, the Nasdaq performed even more impressively, with a gain of +168 handles, followed by an additional +40 handles in the upside.
Today's session was picture-perfect, especially considering the backdrop of a relaxed market holiday just the day before. Despite the expectation of a slow start to the week due to the holiday, there was plenty of volatility to keep traders engaged. On all Bank Holidays, I typically step away from the markets to enjoy the day off. These holidays tend to be characterized by closed sessions or half days with low liquidity.
Stocks delivered exceptional performances, with more than 5 stocks breaking the +100% gain mark above my long levels.
Tesla (TSLA) witnessed a massive spike early in the session, driving contracts from 3 to 8.7, a remarkable +190% gain.
NVIDIA (NVDA) also exhibited strength, surpassing my key level and taking contracts from 3.7 to 7.85, marking a solid +112% increase.
Similarly, AMD experienced a strong opening move, propelling contracts from 1 to 2.45, a noteworthy +145% gain.
META, which had already shown strength with a substantial spike the previous week, continued its impressive run, moving from 2.8 to 5.45 for a +94% gain on contracts.
Amazon (AMZN) wasted no time, spiking right from the opening bell and increasing contracts from 1 to 2, achieving a +100% gain.
In contrast, Google (GOOGL), Apple (AAPL), and Microsoft (MSFT) displayed slower performance, as expected. Notably, AAPL and MSFT encountered resistance at my swing short levels, suggesting the potential for downside volatility to close out the week.
Netflix attempted to rally earlier in the day, benefitting from a strong gap up, but it faced resistance at my level once again, resulting in a 15-point drop by the close. This marked the second consecutive session in which Netflix suffered a substantial decline after nearing my swing short level.
Today, there are no specific events to cover, so let's delve right into my thoughts on tomorrow's PPI and FOMC Minutes releases and their potential implications for the indices and stocks. I recommend reading Flow State #47, where I analyzed recent releases and the goals the Federal Reserve has set for the year's conclusion. Moving forward, our priority will be aligning our strategies with the Fed's expectations.
I posted my thoughts on six stocks posting earnings on Thursday before market open: UNH, JPM, WFC, BLK, PGR, C, and PNC. This can be found in the “Earnings” section.