Daily Plan 11.14.23
Ticking Time Bomb
Welcome back everyone!
Today's session was another whirlwind, with the indices initially feigning a sell-off before rallying to new highs. This brought about significant rallies above the long levels. We're encountering clear resistance that has taken over a week to break through. What exactly is this resistance? It's the High Volume Node (HVN)/Point of Control (POC) within the larger value area, which was identified weeks in advance. Most positions are established at these levels, which explains the recent rejections and the current phase of accumulation.
Apart from this, we started the week on a strong note with a sell in TSN post-Earnings Release (ER), aligning well with my thesis, though it fell just short of my target. There are many more stocks reporting this week, which I covered in Sunday's Flow State #52, so be sure to check it out if you haven't already!
While the indices were bid up, only a few stocks managed to break above the long levels, with most declining below the short levels. It was another remarkable session for TSLA, NVDA, and META. Even the stocks that experienced a downturn today worked out in our favor.
There was no pressing need for updates via X today, as the market took the entire session to push higher, resulting in subdued volatility.
Shifting our focus to swing trades, we're outperforming the S&P 500, which is up +1.49% since we launched our spreadsheet tracker. The stocks we've selected have contributed a +4.00% gain to the account and are well-positioned for any potential downturns in the overall market. Major moves take time to develop, and we're currently observing sellers accumulating positions in real-time. Remember, it's crucial to be, at a minimum, on the opposite side of retail traders' positions, as they often contribute to the adage that "90% of traders fail." This is indeed true! The primary goal of this newsletter is to demonstrate how to avoid being part of that unsuccessful group. I'm pleased to report that readers of this newsletter are making money by applying my teachings. Learning about the markets takes time and varies greatly from one trader to another, but perseverance, along with having all the necessary components in place, can lead to potential success. This isn't rocket science; consistent effort over time will yield results. Put in the time, and you'll stay ahead of the herd.
Now, let's dive into my analysis for tomorrow!