Daily Plan 12.6.23
Welcome back everyone!
Just as anticipated, the Emini and Nasdaq adhered to the value areas outlined in last night's newsletter. Both indices experienced a sell-off early in the morning, reaching the short targets and finding support at these levels for the remainder of the day. Later in the session, we observed a breakthrough of the short level, which attracted sellers, providing ample selling opportunities for both the Emini and Nasdaq for the rest of the session.
Oil also followed the predicted trajectory, selling off from my short level twice and successfully hitting the short target on both occasions, resulting in a gain of over +200 pips for the day.
Gold, after a tumultuous close last week and entering into Monday's session, exhibited little to no volatility today. We have been closely monitoring this metal since its rally from the lows in the 1930s. Although the price faced a clear rejection at the upside upon reaching 2150, it remains elevated, suggesting the possibility of further attempts to set a new high in the upcoming weeks.
Stocks mirrored the early sell-off seen in the indices before finding a bid, with many surpassing the long levels, making this a particularly challenging session for trading stocks. Looking at NVDA, the price dropped to 448, aligning with my recent target set post-earnings, before establishing the low and rallying 20 handles to close the session around 468. The SBUX swing short is performing exceptionally well, now down 13 handles from the 107.96 level. Numerous other swing shorts are also showing solid unrealized gains, contributing positively to the swing portfolio logged in the spreadsheet. You can find the current positions detailed in the momentum gallery section below.
Today's earnings played out quite favorably for us, not just once but twice!
AZO: Bullish - Target 2699
AZO (AutoZone) exhibited a bullish trend, reaching my target of 2699. The stock rallied immediately after the earnings report, then sold back down to the opening price before surging all the way up to my target again.
Now, let's delve into my thoughts for tomorrow by initiating the breakdown of the Emini Volume Profile setup for the upcoming session. This analysis will focus on identifying key levels and potential areas of interest based on the volume profile, which is crucial for understanding market sentiment and planning effective trading strategies. By examining the distribution of volume and price, we can gain insights into where the market might find support or resistance, and how traders are positioning themselves. This information will be instrumental in navigating the market dynamics and capitalizing on potential trading opportunities.
Breaking Down the Profile
S&P500 (ES)
