Daily Plan 3.22.24
Welcome back everyone!
Let’s kick this off with a recap of todays session and then move on to the video for todays levels.
Indices:
Another session has come to a close with the Emini exhibiting tremendous strength once again. Not only did the long level capture most of the upside today, but also, I identified an SPX put that surged from 2.3 to 7 over on X. Even amidst an uptrend, the volume profile can uncover weaknesses in the intraday structure, precisely what signaled the short setup today. Shifting focus to the Nasdaq, prices managed to rally up to the 18649 long target before encountering a robust wave of selling, which proved to be more intense than what we observed on the Emini. This could be attributed to AAPL experiencing a significant selloff today following news that the DOJ is suing them for monopolizing the smartphone market.
Commodities:
Oil experienced weakness, leading to a steady sell-off from the 81.48 short level. The price managed to reach the 80.53 short target, marking a 95-pip decline, with the target almost reaching the LOD (low of the day).
Gold spiked overnight, reaching as high as the long target at 2202 before surging further to 2225. However, just before the market opened, prices retraced sharply back to the long level and subsequently broke below the short level, initiating an 11-handle sell-off, setting the LOD. Regrettably, all the significant opportunities occurred during the overnight session, leaving little room for intraday traders to capitalize on these movements.
Stocks:
We are witnessing extreme volatility in the stock market on a daily basis, with AAPL dominating the scene. As mentioned earlier, the news from the DOJ poses a significant threat to AAPL, potentially leading to the company's breakup. If this scenario materializes, we can expect a massive blow to the stock, and I anticipate further downside in the coming weeks as long as this case remains unresolved. Until there is a resolution, the indices are unlikely to experience a significant impact solely based on AAPL's situation.
In other developments, MSFT experienced a significant gap up following yesterday's FOMC rally, bringing in a gain of 6 handles above the 424.87 long level. META also saw a strong gap up, advancing 11 handles into the cash session open. Additionally, AMZN and NVDA witnessed robust gap ups in their prices, while other stocks encountered selling pressure. As AAPL declined, we observed similar price action in GOOGL, with the selling being just as pronounced.
On top of the usual stocks, FDX saw a major gap up on ER bringing contracts set to open up +1,000%!
Now let’s move on to the thoughts posted for tomorrows session!