Daily Plan 10.3.23
Markets Close Slightly Positive - What’s Next?
Good evening, readers!
Another fantastic session is now behind us, during which we managed to bring ES down from its highs to the lows, perfectly aligning with my 4306 target. On the flip side, Nasdaq didn't follow suit; instead, it displayed resilience and strength. The tech sector witnessed significant spikes, surpassing my long-level expectations for the day. Meanwhile, the gold market continued its downward trend, reaching another fresh low that has piqued my interest for potential swing long positions in NEM. Oil, on the other hand, experienced yet another collapse, extending the decline from the previous week and breaking through my short target.
TGT took a hit today, shedding 5 handles and hitting a new low, consistent with the swing thesis I shared in Flow State #46. All 14 of the stocks I bearishly assessed closed lower, with some even breaching last week's lows, signaling a possible continuation of the downward trend. MCD also reached a new low today, following the path of Target, which we had shorted from 280. Since the call of the exact high, the stock has plummeted by 23 handles. ORLY, which had recently dominated the market, suffered a sharp decline to 895, starting the week with a 20-handle drop. In just one session, VZ is nearly at my swing short target, posting a significant decline to new lows. O, the dividend darling, has once again broken to new lows and is already halfway to my swing short target. KO, typically considered extremely stable, has been in a continuous decline since I turned bearish on it. UNP, which I bearishly assessed at the ER gap up at 230s, has now dropped by 30 handles, with the stock currently trading in the low 200s. We still have room for my Bull thesis swings to break above the long levels, so I urge you to keep a close eye on these stocks and consider setting alerts in anticipation of price breaches. The start of this week has far exceeded my expectations, with nearly all 25 stocks I posted last night moving in the right direction. As a bonus, COST is approaching my 585 long target, with its current price sitting near its recent highs.
Even if your primary focus is day trading, I highly recommend allocating a significant portion of your portfolio to swing trading, ideally even more than half. This strategy is the best way to preserve capital during drawdowns and secure your assets for the long term. Following this approach, there is no risk of being liquidated, ensuring your financial stability and future growth.