Daily Plan 3.1.24

Welcome back everyone!

Every session continues to bring increasing volatility that we've been adept at capturing. From predicting index lows and subsequent breaks to highs, to DELL posting tremendous earnings, which worked in our favor, we've managed to seize opportunities at every turn. All of these movements are meticulously analyzed and acted upon, as detailed within the newsletter. Once again, my expectations were met as the dip was swiftly bought, propelling the market right up to the 5100s. This trend has persisted over the last four sessions, as evidenced in last night's newsletter where I provided a comprehensive breakdown of why I anticipated lows followed by a rally towards highs. A key focal point was the major LVN (Low Volume Node) at the 5060s, which remained a crucial support level throughout several sessions. As long as this level held, we anticipated a robust upward movement, ultimately testing upper value. Examining the chart below, you can see this precise scenario playing out.

The Nasdaq experienced precisely the same price action, encountering a significant resistance at the swing VAH (Value Area High) that persisted throughout the entire session. You can view the chart illustrating this pattern here:

Gold finally experienced a strong session, as I had anticipated since Sunday. Despite the strength in the indices, gold's performance indicates there is ample upside potential ahead. As some of you may already know, this theme is poised to become even more prominent once the election wraps up. I firmly believe we could witness a move up to 2800-3000 during the next presidential term. Furthermore, we should anticipate higher gas prices once again. If oil manages to rally, it could have significant implications for the indices, potentially triggering a larger sell-off. However, I prefer not to dwell on potential selling pressures at the moment, as I believe true corrections won't materialize until the Fed begins to cut rates.

Shifting focus to stocks, AMD emerged as the top performer today, rallying an impressive 20 handles from the 175 long level. MSFT also staged a robust rally, hitting a low of the day (LOD) at 405.79, which served as the long level for a 9 handle rally. META exhibited similar price action, with the LOD barely surpassing the long level at 482, also resulting in a 9 handle rally. Pre-market strength in AMZN led to a gap up above the long level, with prices surging from 172 to 177 during the cash session, resulting in 5 handles of upside. NVDA saw most of its gains during the overnight session, with nearly a 20 handle gap up from the previous close, remaining strong akin to AMD.

Concluding the recap, I'd like to highlight that CRM successfully reached the 310 earnings target after recovering from initial selling post-report. DELL also achieved its earnings target, witnessing an 18-handle upside from the close. Contracts are poised to see substantial gains, potentially reaching multiple hundreds of percent, as long as this gap up holds.

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