Daily Plan 3.13.24
Welcome back everyone!
Indices:
Today brought forth a stunning session, following a small window of opportunity offered yesterday. As soon as the CPI data was released, a strong rally ensued in both the Emini and Nasdaq markets. The Emini surged above the 5188 long level, making a robust move beyond the 5218 target, not once but twice - once before the market opened and again during the cash session. This resulted in a net gain of +60 handles, with an additional 20 handles of upside from the long target.
Shifting focus to the Nasdaq, we witnessed a similarly strong movement above the 18258 long level, encountering resistance precisely at the 18438 target. This led to a net gain of +180 handles in today's session alone.
Commodities:
il is not exhibiting the same level of volatility as we ascend towards the $80 mark, as evidenced by the failure to breach above today's swing VAH. Despite starting from the 77.58 long level, prices peaked just below the 78.85 VAH. This lack of upward momentum does not bode well for Oil, particularly for those holding bullish sentiments on a weekly timeframe.
Following the inability of prices to sustain above the VAH and penetrate into the next value area, we have observed a dearth of buying interest. Currently, the value area spans from $69.41 to $78.85, suggesting significant downside potential if we remain within this range. As long as prices remain contained within this boundary, I anticipate an influx of sellers, particularly as we approach a major election, potentially driving prices even lower.
Gold, on the other hand, has broken its strong uptrend of setting a new high in each session since February 26th. Yesterday, prices remained stagnant, offering no upside despite maintaining support. Today, following the release of the CPI, which came in cool, we witnessed a 30-handle sell-off from the previous session's close. At this rate, we could see Gold plummet right back down to $2000 in time for the election.
While I have been vocal about the strong rally we have witnessed, I anticipate selling pressure to mount as consumers are not as wary of what lies ahead. Everything seems to be going according to plan for the Fed, and there remains a sense of trust among the people.
Stocks:
Every stock performed well today except for TSLA. The other seven stocks saw strong rallies to the upside, with some reaching the LOD directly at the long level. This is all to be expected, as the indices experienced a massive rally after the CPI report was released. As I keep emphasizing, stocks will continue to be bought up on all dips until we are able to break this uptrend. And there is no better way to identify support than by using volume profile analysis.
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