Daily Plan 11.10.23
Markets Close Lower - What's Next?
Welcome back everyone!
As I anticipated, the sell-off occurred today following Powell's remarks. Just as I predicted, the rally was sustained by short covering, which became evident today due to the absence of buyers in the session. Additionally, I had forecasted the Santa rally, but not in the way many others had expected. I believed that this squeeze was the rally itself and that it was poised for a significant pullback, which is precisely what transpired. In fact, I discussed this in yesterday's session!
Today, we reached my target for a long position in the Nasdaq, after which I issued an update predicting a further sell-off from this point, following a drop of 40 handles. In summary, the Nasdaq is now down more than 240 handles from its highs, and this update proved to be remarkably accurate. Moreover, early in the session, we witnessed strong rallies in Oil and Gold, creating the perfect conditions for a red day in the indices, particularly given the recent trend of strong selling while the indices are bid up.
Following today's session, many of our swing short positions are now excellently positioned. To name a few: TSLA, CAT, CCI, CSCO, TGT, TJX, among others. Be sure to stay tuned, as these swing positions are updated weekly in the Flow State series, which is published every Sunday.
In addition to the indices and commodities working strongly in our favor, stocks also posted significant gains for us today. TSLA yielded an 800% return from the short level, which coincided with the exact high of the day (HOD)! AMD and NVDA also posted strong rallies, maintaining levels above their long positions throughout the entire session, despite the strong selling pressure in the indices.
Overall, this was an extraordinary session with the potential for further declines. I will cover this in more detail in the remainder of this post.
Now, let's delve into my projections for tomorrow!