Daily Plan 3.7.24
Welcome back everyone!
Let's kick this off by recapping how the session went for Indices, Commodities, and Stocks, and then move on to what we have in store for tomorrow's session.
Indices:
The Emini and the Nasdaq both witnessed a robust rally overnight (OVN), establishing lows directly at the long levels while reaching highs precisely at the long targets. The Nasdaq surged by over 200 points, with an additional 36 points coming from the Emini. As anticipated, the rally not only commenced from the 5070 level but also extended further during Powell's testimony. Despite the event, no new significant revelations emerged, and I anticipate a similar scenario for Day 2. Powell has remained reticent, seemingly banking on time to mitigate inflationary pressures.
Today serves as a prime illustration of the persistent buying pressure on dips. Despite selling at the open and experiencing subsequent declines, the market rebounded just above the day's low. Unless you're capitalizing on long positions during these downturns, today's price action likely resulted in significant losses. Precision in market entry points is paramount to avoid being whipsawed out of positions. Below are the charts from today:
Commodities:
Oil surged out of the range of the previous session, confirming the signs of a strong move I discussed last night. Yesterday's session focused on keeping the price below the swing value area high (VAH), which held true for most of the day. However, during the overnight (OVN) session, we witnessed a spike out of this value area, propelling the price above the 80.13 long target. Almost the entire rally today was absorbed between the long level and the target, demonstrating the effectiveness of volume profile analysis, particularly my system. Below is the chart:
Gold also saw an upside movement, maintaining its strong session and displaying no signs of weakness thus far. Early in the morning, Gold managed to stay above the 2134 long level, resulting in a significant spike reaching up to the 2156 target, which nearly matched the session's peak. An additional 22 points of upside were added to this uptrend, thoroughly absorbing from the levels. Below is the chart:
Stocks:
Once again, the semiconductor sector dominated the market, with both AMD and NVDA experiencing another remarkable session. NVDA surged by 40 points from the 857 long level, while AMD rallied by 10 points from the 205 long level. META rebounded from the previous session, surpassing the 492 long level and recording a 10-point increase. However, the remaining stocks either sustained selling pressure or exhibited subdued volatility.
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