Daily Plan 2.28.24

Welcome back everyone!

Another whipsaw session unfolded, characterized by minimal movement in the indices until the day's close. It's worth noting the conspicuous absence of selling pressure, particularly evident as certain tech stocks experienced significant declines. Despite this, the semiconductor sector remained relatively resilient, indicating substantial fund allocation therein. This shift in investment focus underscores a notable trend that warrants close monitoring in the weeks ahead. Any uptick in selling within the semiconductor sector could potentially reverberate throughout the broader indices, potentially breaching the sustained swing Value Area High (VAH) support. I will diligently provide updates within this newsletter once genuine selling pressure materializes.

Examining specific stocks such as AMD, NVDA, and TSM reveals their enduring strength, juxtaposed against recent highs set by GOOGL, AAPL, and MSFT. Market dynamics continue to signal upward momentum in the indices, prompting a shift from a bearish to a bullish stance for today's session. In such circumstances, it's prudent to align with the prevailing trend, especially given the reluctance of Emini and Nasdaq prices to retreat further.

Early in the session, I observed stock weakness juxtaposed with resilient indices, prompting me to signal a potential buying opportunity on X, anticipating a rebound towards the 5100s. This projection nearly materialized, with a late-day surge almost reaching the 5100 mark. This move was anticipated alongside a trade setup I had been monitoring: SPX 5070 Calls, priced at 3.3 initially, surged to 11 by the day's close, yielding a remarkable 230% gain.

Beyond the indices, considerable activity unfolded in stocks and commodities. Oil witnessed a robust rally from the long level of 77.49 to the target of 78.75, resulting in a net gain of +126 pips. Gold, albeit exhibiting limited movement, offered a modest decline of 6 handles from the short level of 2043.6.

Within the stock realm, AAPL initially saw a 2-handle decline from the level of 181.56, only to reverse course upon news of iCar production cancellation, triggering a substantial spike that buoyed the indices. MSFT encountered notable selling pressure, encountering resistance at the 407.99 short level and delivering a 4-handle decline towards the swing Value Area Point of Control (POC) at 403.94. NVDA opened with selling pressure, shedding 15 handles from the 785 short level. TSLA sustained yesterday's rally with a gap up, surging to 205.60, while META witnessed three distinct rallies, peaking at 487. For a comprehensive overview of today's levels, refer to yesterday's post titled "Daily Plan 2.27.24".

Now, let's dive into the analysis for the upcoming week!