Daily Plan 6.4.24
Welcome back everyone!
First, we will cover the recap for today's session, then move on to tomorrow's analysis.
Indices:
The indices experienced another significant session marked by a substantial sell-off followed by a strong recovery that nearly reached the previous highs. My short target on the Emini was rather conservative; initially, the price found support there but ultimately continued to decline, breaking below the swing Value Area High (VAH) and hitting the swing Point of Control (POC). As I have mentioned many times, the POC is a magnetic price level and serves as a viable target, especially during periods of high volatility. Today's session had a larger-than-expected range, which was not the case for the Nasdaq. The Nasdaq opened at the long level, leading to a sell-off down to the short level. The price continued to decline, reaching the short target and setting the session's low. Based on the futures levels posted in the Daily Plan section, the price respected these levels for almost the entire session.
Commodities:
Oil once again exceeded my expectations, experiencing a significant sell-off from the short level, which was the overnight high. The price broke through the short target, dropping by 121 pips before continuing its decline, ultimately falling a total of 476 pips from the short level to the session low.
Gold continued to demonstrate strength, rallying up to the long target and achieving 13 handles of upside. The long target was nearly the high of the session, with a sharp spike above this level that was quickly sold off right afterward.
Stocks:
Tesla was highlighted in the chat today, providing ample selling opportunities from the highs where I adopted a bearish stance. This morning, I sent out an update in the chat at $182, recommending a sell and suggesting two Put contracts that showed potential for a significant move. Both contracts performed well, yielding over 200% on one and 100% on the other. When I recommend two contracts for a single stock, I include a weekly contract along with a contract for the following week to balance risk and reward. As the week progresses, I will continue to update my thoughts on this and provide insights on what to expect.
Microsoft was the only stock to exhibit consistent weakness throughout the session, as indicated by the levels posted in the Daily Plan section. Selling pressure intensified right from the opening bell, rejecting a rally above the long level and subsequently experiencing a strong sell-off below the short level, resulting in a 4-handle drop to the session low.
Nvidia, Amazon, and Apple all demonstrated strength above their respective long levels, offering various amounts of upside potential. These levels are intended for intraday trading and will not necessarily be the same for tomorrow unless the stocks close unchanged.
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