Daily Plan 10.24.23
Markets Close Higher - What's Next?
Welcome back everyone!
Today's trading session proved to be exhilarating, with the Nasdaq long target reaching its high of the day (HOD), and the Emini short target coming tantalizingly close to being achieved not once, but twice. As I had foreseen in Flow State #49, the markets exhibited a sell-off at the beginning of the week, plummeting to 4220, a move I had expected to occur early on. At that point, I had also mentioned the possibility of support coming into play, which is why I strategically placed my short target just above at 4226. This turned out to be a picture-perfect call, as not only did we witness a bounce, but my prediction of a break above 4261 also came to fruition.
Despite a strong couple of weeks for Gold, it remained relatively suppressed today. However, I anticipate a significant move on the horizon, particularly due to escalating global tensions that hint at a potential World War III. Now, I won't delve into my personal thoughts on war, but rather focus on how these geopolitical developments might influence the markets. In the event of an escalation in ongoing conflicts, Gold is likely to be accumulated as a safeguard against sanctions that could erode the value of currencies. Given the heightened volatility of these times, I expect many countries to start accumulating Gold, even at these current levels.
Turning our attention to oil, it's a commodity that demands close monitoring during times of conflict. Increased war-related disruptions in production could lead to higher prices for consumers while potentially boosting profits per barrel for producers. With production levels susceptible to significant swings during such times, I'll be keeping a vigilant eye out for potential substantial movements to the upside in the oil market.
Moving beyond commodities, today's trading session saw remarkable sell-offs right out of the gate, followed by impressive rebounds that carried prices back to where they closed on Friday. The contracts exhibited extreme volatility, and this volatility worked to our advantage. For instance, Tesla opened with a 10-handle sell-off below the short level, while Nvidia experienced a 7-handle decline before rebounding and rallying an astonishing 13 handles above the long levels, making it the standout winner of the day. Apple dipped over 3 handles below the short level before recovering and ending the session nearly unchanged. Microsoft, on the other hand, rallied 6 handles to the upside, surpassing the key long level I had posted the previous night. Meta also enjoyed a robust rally, gaining over 7 handles above my designated level, resulting in significant upside movement in contracts.
It's worth noting that all these stocks and more have daily levels posted based on volume profiles, which offer valuable insights into where buyers and sellers are positioned. As I've mentioned before, Volume Profile can be applied to virtually anything that has liquidity in the market, providing traders with a valuable tool for making informed decisions.
Now moving on to my thoughts for tomorrows session!
Please note that I have posted analyses on over four stocks for tomorrow's earnings reports. Be sure to tune in to the "Earnings" section for more details and insights.