Daily Plan 10.27.23
Markets Close Lower - What's Next?
Welcome back everyone!
This has been an extremely successful week, not only in terms of intraday trading but also with respect to earnings. Ford, Chipotle, and Amazon all performed favorably based on the analysis I provided on Sunday. Even though I had a bearish outlook, Intel turned out to be a great call, with the stock reaching my target of 32.10, which coincided with today's session low.
However, the indices took a sharp nosedive following the unfavorable price action from last night. The Emini came very close, within 5 points, of my short target at 4140, while the Nasdaq reached my target and set a new low of 14,159. Oil also plummeted through my short target, resulting in over +300 pips in downside movement. Gold similarly reached my short target, offering a decline of +11 points. Once again, the four main components discussed in this newsletter performed exactly as I had anticipated.
Stocks are experiencing intense selling pressure, particularly Apple. Nvidia has now dropped by 100 points since I provided my short signal at the peak of 500, a well-timed call that has led to LEAP Puts gaining over 70%. It's important to note that these contracts still have over 9 months until expiration, with ample room for further downside potential. Both Advanced Micro Devices and Super Micro Computer are also taking a beating, showing no signs of recovery in these stocks.
Microsoft reached my earnings long target briefly after the report, only to give it all back within just two sessions. This serves as a clear demonstration of the accuracy of these order flow levels and further exemplifies the effectiveness of volume profile in identifying precise entry and exit points for buyers and sellers.
Ending on a positive note today, let's transition into tomorrow's analysis with optimism and confidence!