Daily Plan 10.4.23
Markets Close Lower - What’s Next?
Good evening, readers!
In every session since reaching the 4333 level, we've witnessed a consistent sell-off, with prices declining to the low 4300s day after day. However, today marked a significant development as we broke below and swiftly surpassed my 4280 target, eventually hitting a low at the critical 4250 orderflow level. This price point carries substantial weight and could either serve as a crucial support level for the indices or trigger a substantial move to the downside. Now, let's shift our focus to the Nasdaq, which also followed my short level guidance, initially reaching the nightly high and then breaking through my short target. It's worth noting that the market structure for the Nasdaq differs somewhat from that of the Emini, possibly due to the tech sector's robust performance this year. The 4250 level on the Emini holds particular significance as a major Low Volume Node (LVN), effectively dividing two substantial value areas this year. For more detailed insights into this, I'll provide further information below for our valued paid subscribers. Now, let's dive into the rest of today's session recap.
In the realm of commodities, gold encountered resistance at my short level and experienced minimal downside movement today, likely influenced by the increasing anxiety in the equity indices. On the other hand, oil exhibited a strong rally, starting from my 88.76 level and reaching the high of the day at my long target of 90.15. Once again, we've found ourselves on the right side of the market, avoiding the choppiness often seen between my identified levels.
Shifting away from commodities, let's delve into the successful stock movements that have worked in our favor. As I mentioned yesterday, all 14 of the swing short ideas posted within Flow State #46 have moved lower on Monday. Remarkably, some of these stocks have already achieved their targets in just two days! I've revamped the format for the swing section using a simple Excel spreadsheet to track all the stocks on my radar. Currently, there are 25 stocks posted, so be sure to check it out to avoid missing out on potential volatility.
Among these stocks, TMUS, CMCSA, and HD have all reached their short targets, while a few others are edging closer to hitting their objectives. MCD and ORLY are among the stocks that appear to be nearing their targets, and these targets are likely to be reached tomorrow, with other stocks following suit once we see a break below my key 4250 level.
Today, I'll be conducting an in-depth analysis of market structure, providing a comprehensive perspective that encompasses volume profile and the underlying thesis behind it all. This analysis will not only apply to today's trading but also offer insights into the sessions ahead throughout the rest of the week. This update is set to be a pivotal one, as it will serve as a guiding framework for nearly all the stocks in the market that are correlated with the S&P500. You won't want to miss this critical analysis.
It's important to understand that my data perspective is primarily channeled through the Flow State series, but I also provide my insights on intraday data releases. The weekends are when I dedicate most of my time to delving into the numbers and crafting a comprehensive perspective for the week ahead. Staying updated with this approach will equip readers with a well-defined thesis regarding what the upcoming releases may entail and how the markets are likely to react to the data, whether it leans bullish or bearish – I aim to cover it all.
Furthermore, this meticulous analysis will not only help you navigate through the immediate impact of data releases but also enable you to grasp the broader implications for your trading strategies and investment decisions. By staying engaged with this data-driven approach, you'll be better prepared to make informed choices in the dynamic world of financial markets.