Daily Plan 12.19.23
![100+] Sun Rise Pictures | Wallpapers.com](https://substackcdn.com/image/fetch/f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F149f24f1-71d7-4074-9ece-210dd32ef39f_1920x1200.jpeg "100+] Sun Rise Pictures | Wallpapers.com")
Welcome back everyone!
What an engaging session we had today, with many strategies formulated last night proving successful. I'll first delve into the positive outcomes from the Indices, then discuss commodities, and finally, stocks.
The E-mini S&P futures remained strong above the designated long level throughout Sunday night and Monday morning, sparking a rally up to the long target. The long level was set at 4762, with the long target at 4794. Although bids consistently came in above 4780 during the entire cash session, the price soared even higher, reaching 4802. This aligned with our expectations, as I anticipated the price would climb higher above the long level and encounter selling pressure below the short level. Ideally, the best fills occur right at the long or short levels, but these prices didn't trade during the cash session. I'll be elaborating on how to navigate this in the upcoming section, where I break down the E-mini profile used for determining tomorrow's levels. Stay tuned for this crucial insight, as it's pivotal for approaching a session that's moving in our favor before the cash session begins.
Similarly, the Nasdaq mirrored the E-mini's price action today, with the long level at 16800 remaining strong through the overnight and cash sessions. The rally persisted throughout the day, surpassing the 16919 long level and ultimately reaching a high of 16975 during the cash session. This provided ample opportunities for traders.
Gold, however, showed limited upside, likely resulting in a loss, as it fell short of my target. The long level was at 2043.9, but there was a distinct rejection of any upward price movement from this point. Contrary to my expectations of a robust rally above the long level, the price did not follow through. On the other hand, Oil, which could have been another viable trade, experienced a significant rally above the 71.77 long level, surpassing my 73.39 long target and reaching a high of 74.61. This rally compensated for all trades in the session, even if they were closed at the long level. The trade involved minimal downside with a nearly 4:1 risk-reward ratio, effectively covering all losses (assuming equal trade sizes) for 3-4 trades, including any minimal slippage.
In contrast, stocks demonstrated impressive gains. Apple, for instance, experienced a substantial sell-off due to news from China, which favored our Put positions. Other notable stocks like MSFT, AMZN, GOOGLE, META, NVDA, and TSLA also showed significant movements, although TSLA gave back all its gains later in the session. For newcomers, I recommend opting for contracts with at least two weeks to expiration to better manage risk, especially for swing positions, where a LEAP (one year until expiration) is involved. Today's movements were significant, and I strongly advise reviewing yesterday's levels. Feel free to post any questions regarding this analysis.
Looking ahead, no events or earnings caught my attention last night, but this will change tomorrow. Keep an eye out for potential market-moving news and earnings reports.
Breaking Down the Profile
S&P500 (ES)
