Notable levels from yesterdays session (Stocks & Futures)
AAPL 0.00%↑ PM set exact low at long level which sparked many strong bounces throughout the session. Long target was just above HOD marking a great session for Apple.
NVDA 0.00%↑ spiked directly off long level running 13 handles to 290! 277.5 Calls went up 200% in todays session on 0 MAE.
AMD 0.00%↑ started strong PM nearly reaching long target before the session open. Once selling down price remained balancing between levels creating a robust node. Both longs and shorts had solid opportunities yesterday with shorts not quite selling as much as I was looking for. Note it was hard to budge while Nvidia is carrying the sector higher.
AMZN 0.00%↑ opened over halfway to long target and was making an attempt to bounce in the morning off 401 but later offered a sell through short level and hit target within 15 minutes after the close.
GOOGL 0.00%↑ was a strong stock noted inside the telegram which was little to no dip below long level all session and giving two perfect entries off the level in todays session. While NQ was pushing through highs, Google pushed all the way up to long target before reversing and giving it all back into the close.
META 0.00%↑ was another stock called out in the telegram and even providing the catalyst of sale of $7B in Bonds. If this comes to light they will more than likely use majority of this cash on stock buybacks which will fuel prices higher. This is exactly what you would want to see if Metaverse is setting up for the long haul. Taking away public shares is one of the key factors to get investors to push stock prices much higher. From long level, Metaverse spiked all the way up to 244 for a 6 handle rally into the close.
MSFT 0.00%↑ while this never was able to reach long target, long level held all session giving many opportunities to take longs for 2-3 handles in upside with no downside.
TSLA 0.00%↑ PM sold down from short level and continued momentum into the open. Around noon we finally hit long level seeing little to no budge below for a 3 handle bounce nearly up to long target.
ES 0.00%↑ 4177 was never hit as market remained bid only selling down to 4181 before rallying higher up to 4206 for +25 handles. To also note, OVN emini has yet to break below 4177 offering another +15 handles up to VAH 4192. 4177 was level to keep this trend in tact and even with todays dats there was no breakdown as many would have expected.
Recap of yesterdays events
Construction Spending: Actual 0.3%, Previous -0.3%
Residential & Commercial buildings saw a decline in spending with Residential dropping -0.2% and Commercial -0.8%. Sectors that saw increases were Manufacturing 4.6%, Educational 0.4%, and Lodging 0.4%. Market were expecting a increase overall of only 0.1% but this was surpassed by a large margin. A 0.3% print may seem small but from -0.3% on the month prior with higher rates and tighter credit sinking in. Let’s take a look at how much the housing has increased in 2023 alone.
Average US Housing Prices
This chart can be quite sickening to the FED as not only are we not seeing a slowdown in demand for selling houses but the prices have sky rocketed this year. Nearly $100k added to average home value in 4 months time. This is while the FED is nearly at peak rates showing this is to be a much harder task to accomplish than “inflation is transitory”.
On the other hand Building permits is on the decline giving indication this can improve soon and I will keep this on watch moving forward. Next release will come on the 17th of this month.
Building Permits
The other release today was ISM Manufacturing coming with a surprise to the upside.
ISM Manufacturing: Actual 47.1, Previous 46.3
