Good morning readers!
The dawn of a new day, following an impressive rally experienced in the market yesterday. It is worth noting that a significant proportion of stocks exhibited commendable discipline, adhering closely to established levels, resulting in the majority of names successfully reaching their predetermined targets. Among these notable performances, Meta stands out, as it surpassed the crucial 300 level, instigating a remarkable 15-point surge that has now propelled it to a noteworthy 315 in early morning trading. Considering the stock's relatively limited exposure in the spotlight thus far, I perceive promising prospects for further upside potential.
While I maintain a professional standpoint, I must express my personal view on Threads, which I find to be a complete replica of Twitter, a sentiment I cannot endorse. However, given Twitter's current state, it does not evoke the same level of concern. Nonetheless, it is important to acknowledge one positive aspect stemming from this situation, namely, the continued support displayed towards the company. It is imperative to recall the prevalent discontent surrounding privacy and censorship issues. Achieving 100 million downloads within a short timeframe stands as a notable achievement for any company, signifying a considerable level of consumer adoption and interest.
Shifting our attention to another notable player in the market, Nvidia, it has impressively adhered to the anticipated value area and is now poised to break through previous highs. This accuracy in prediction underscores the astute nature of our analysis. I highly recommend revisiting yesterday's comprehensive plan, alongside the Weekly Outlook, in order to thoroughly assess the results achieved and diligently study the established levels.
Scanner (Finviz)
Using Volume Profile, my approach involves an in-depth analysis of the market's structure and trends by carefully examining various charts and indicators. This comprehensive evaluation allows me to assess the robustness of the market structure and determine the prevailing trend, whether it be bullish or bearish.
Presently, the market exhibits an impressive number of stocks surging past previous highs, suggesting a strong upward momentum. This raises a compelling argument for considering long positions in a significant portion of the stocks that have experienced notable gains this week. As I frequently emphasize, it is crucial to identify the underlying value within the stocks, emphasizing long positions near the lows, while employing a strategy where the trade is invalidated if the stock breaks below a predefined threshold (the trend).
To provide a visual analogy, we can draw parallels between this strategy and the box theory, albeit utilizing profiles instead of boxes. By utilizing profiles, we can gain a comprehensive understanding of the stock's price action, volume, and key levels, allowing us to identify potential support and resistance areas. This methodology enables us to gauge the strength of the market structure and make well-informed investment decisions based on these profiles.
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