Daily Plan 12.20.23
Welcome back everyone!
Once again, both the Emini and Nasdaq took off early in the day, surging right up to both of their long targets. This week has kicked off with remarkable momentum, with both yesterday and today successfully reaching those long targets. As long as we continue to see strength in this trend, I don't foresee any reason for selling pressure to enter the market. To understand why these levels are performing exceptionally well this week with minimal downside against long positions, we need to delve into the daily market structure of the Emini, which I'll discuss in the section below.
Here are the levels posted for both the Emini and Nasdaq last night:
ES Long 4783 > 4815
NQ Long 16893 > 17019
This translated to a total gain of +23 handles on Emini and +100 handles on Nasdaq.
Turning our attention to the oil market, it rallied right up to the long target, with the entire rally aligning perfectly with the long level and target. This resulted in an impressive +163 pips of upside. Here is the level used for today's session:
CL Long 72.82 > 74.49
In the realm of precious metals, gold experienced a massive spike, in line with my expectations, as I had extended the long target beyond the average expected range. This move was primarily driven by value holding at lows, followed by a breakthrough into a Low Volume Node (LVN), fueling an upward move as short positions had to be covered above the Value Area High (VAH). Yesterday, we witnessed a spike above the VAH at 2040, leading to an impressive +8 handle spike in just minutes. With our ability to hold above the VAH, as we did, I anticipated a robust upward movement. Here are the levels that were shared for today's plan:
GC Long 2043.9 > 2062.2
Beyond indices and commodities, stocks once again displayed strong movements, bringing substantial gains to contract holders. AMD, META, GOOGL, and TSLA all respected the outlined levels throughout the session, resulting in strong rallies. On the other hand, NVDA faced some selling pressure but remained just below the short level by the close. It's worth noting that the same approach I use for the Emini applies to all stocks, employing the Volume Profile setup to navigate the next session effectively. Always consider where the price stands in relation to value areas and which areas have the potential to break a value area or establish balance, whether wide or narrow.
Here are the levels for the aforementioned stocks:
AMD Calls above 138.57
META Calls above 342.63
GOOGL Calls above 135.21
TSLA Calls above 250.68
NVDA Calls above 499.27
Now, let's shift our focus to my analysis for tomorrow by diving into what the Emini is indicating from a volume profile perspective.
Breaking Down the Profile
S&P500 (ES)
