Welcome back everyone!
First, we will cover the recap for today's session, then move on to tomorrow's analysis.
Indices:
Kicking off the recap, both the E-mini and Nasdaq established the day's lows at the well-documented long levels, as illustrated in the charts below. Suddenly, a wave of sellers entered the market, causing a sharp drop back to the E-mini's long level—a move I had anticipated would continue downward. In the chat, I issued an update for the SPX 5095 put contract at 1.8, which subsequently surged to 10, yielding a 450% gain. Additionally, beyond the SPY contracts, I highlighted three tech stocks in our chat, which you can review in today's messages.
Commodities:
Oil began the session by rejecting the long level and making a move below the short level. Although this move fell short of the target, it still offered a 71-pip decline.
Conversely, Gold experienced the opposite trend. It initially failed to break down below the short level before rallying above the long level, establishing a strong support. This movement provided 14 handles of upside, yet it too fell short of the target.
Stocks:
The three stocks that closed the session in the red were the ones I had warned would likely see further weakness during the session and potentially later in the week as well. I will continue to emphasize that focusing on the weakest stocks is the key to staying on the right side of the market. This strategy not only captures volatility but also reduces the odds of the stocks moving in an unfavorable direction.
TSLA and AAPL were the strongest performers, particularly notable with the major gap up in the session. There has been a shift where TSLA and AAPL, which had been sold off for a couple of weeks, are now being aggressively bought at lower prices, resulting in a sharp upward move and squeezing short sellers. AMD also performed well, staying in demand for most of the session and closing the day in the green.
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