Daily Plan 11.2.23
Markets Close Higher - What's Next?
Welcome back everyone!
Today, our session began on a positive note, with earnings favorably aligning with our predictions. CVS, HUM, and KHC all proved to be spot-on calls, contributing to our successful start. Additionally, QCOM and ABNB also worked in our favor later in the session. However, PYPL was the only stock that failed to meet my expectations.
To provide you with some context, I had shared a comprehensive list of earnings expectations for the entire week in our Sunday update. This information allowed us to strategically plan and make informed decisions throughout the week.
Turning our attention to the indices, a remarkable rally occurred, surpassing my long-level expectations on both the Emini and Nasdaq. This upward momentum continued to push prices higher, ultimately reaching my predefined targets, resulting in gains of over +24 handles on the Emini and +143 handles on the Nasdaq.
However, I issued a cautionary warning concerning X, highlighting my skepticism about the sustainability of this rally. In the following section, I will delve into my reasoning from a market structure perspective and elaborate on the hints dropped by the Federal Reserve during their recent announcement.
While the indices were in the midst of their impressive rally, I shared an update emphasizing the significant surge in the tech sector, which persisted throughout the trading session. This aligns precisely with the expectations when the indices remain above my long-level indicators, reinforcing the foundation of my thesis. It's important to note that there are occasions when specific catalysts may cause individual stocks to deviate from sector trends. However, today was an exception, and the overall trend held strong.
Shifting our focus beyond stocks, the oil market came close to reaching my short target, resulting in a favorable sell-off of over +200 pips. Meanwhile, gold reached my long target before retracing slightly and narrowly missing my short target.
Now, let's transition to my analysis for tomorrow's trading session.