Welcome back, everyone. I hope you had a great session yesterday.
For the S&P, the levels worked, though the price action was not entirely to my liking. There was no clean bounce off the 6974 value area low (VAL) in the morning, which ultimately led to a sell-off down into the lower value area. We marked the 6968 value area high (VAH) as the short level and placed the target at the 6932 point of control (POC). This caught the low of the day as the market rebounded from there. I expected further selling while below the 6968 VAH, but instead, the market broke back through the low-volume node (LVN) twice. Overall, a good chunk of the handles captured from the short were given back on these fake-out moves.
Here’s the levels posted yesterday:
Stocks, on the other hand, are working quite well! Over on X, I posted two screenshots that a subscriber sent me. They captured the move not only on ASX but also on CBLL. If you are using the 5% allocation to stock swings like I have talked about, this subscriber would see their portfolio up over 30% just based on these two stocks. The best part is that the longer-dated contracts allowed them to soak up the entire rally so far. I believe these two stocks still have plenty of upside left for the future months—especially ASX, which is slowly beginning to be realized as a tremendous company.
Fun fact: ASX is the world’s largest provider of semiconductor manufacturing services. As I have previously stated, for the AI trade, you want to be positioned in the semiconductors themselves, not necessarily the companies using them. This is another perfect example. Semiconductors are here to stay whether a specific company using the products fails or succeeds. ASX is in that same ballpark.
I also want to point out that the combined return on all the stocks posted in the watchlist is 22%. With 5% allocated into each stock, you would be sitting on a 22% total return. The best part is, this only accounts for buying common shares. If you instead bought LEAP contracts, you could be seeing anywhere from 70% to 120%.
There are so many winners we have sent out: LBRT, ASX, CBLL, AAPL, GOOGL, IMNM, TRMD, IBP, BLD, AGX, RKLB, PCAR, and many more. This is not to say there aren’t any losers, but the winners far outweigh them. You never know which stock will be the next big winner, so you disperse funds across all the stocks, cut the losers quickly, and let the winners ride.
Make sure to read yesterday’s post, as I sent out two more stocks that have been added.
Now, let’s shift our focus to the S&P levels for tomorrow.
