Let’s kick this post off by covering the performance of the levels sent yesterday:
Scenario A Result: Last night we marked the long level above the Value Area High and above a Low Volume Node which was situated just above. The main thesis for the session was that as long as price entered the value being built up above 6978, we could see a continuation of the upside toward 7025. Not only did we break above that 6978 long level, but price continued higher all the way to our main target of 7025. This marked the absolute High of Day for a total of 47 handles of upside. Once again, we are demonstrating the power of Volume Profile along with the specific way that I personally utilize it. If you were using typical intraday profiles or preset timeframes—especially on the weekly profiles—you more than likely would have missed today’s move. I highly recommend checking out the Volume Profile series posted in the education section of this newsletter for a deeper look at my personal methodology.
Scenario B Result: The market opened above 6968 today, which means the short level was never valid for the session. However, this remains a key area that I will continue to use throughout the week to monitor for any potential weakness below this level.
Each session I mark key levels and provide a thesis on what I expect from those levels, forming two scenarios for the next session. Today, price successfully reclaimed the space above the value area high, taking out the 6978 long level. Being able to see where the majority of volume is building allows us to identify the most accepted prices versus the “outlier” prices where buyers and sellers are overtaking one another.
Winners everywhere you look:
Apple (AAPL): We called for a bottom to form, and it has seen a strong move up to 261 in today’s session.
Tesla (TSLA): We identified support at 420; price crossed 454 today.
TSLA Options: The 470 calls for February 6th expiration, which were sent out in the 12.00 to 15.00 range, hit a high of 17.1 today, showing remarkable upside to start the week.
Insulation Stocks: IBP and BLD are up 18% and 14% respectively in the last three sessions. I called for interest rates to head lower in 2026 based on dropping unemployment and inflation; this thesis is playing out clearly in these leading sector stocks.
ASE Technology (ASX): Remarkable move today with new highs being put in up to 18.30. This stock is up 14% to start the year.
Ceribell (CBLL): New highs hit today up to 24.33 which puts contracts up to 9 from 2. One of the strongest stocks that nobody is talking about.
Tomorrow’s Levels (Paid)
Primary Level 1: 6978 (Long Level/Support) The 6978 level remains the pivot for our bullish outlook. As we break above the highest value area, we look for a new one to form at the highs. This means we want to look for longs near the lower end of that bulk of volume at 6978. While continuation is expected, chasing prices at the current 7020s is not viable from a risk-to-reward perspective.
