Daily Plan 7.23.24

Welcome back everyone!

Today was a tremendous day as my thesis for the VIX played out perfectly. The price rejected directly off the trend line, with the Emini and Nasdaq bouncing off the lows. A large inflow moved right back into tech, while the IWM came under pressure. As tech was selling, we saw funds piling into small caps, boosting the IWM to the upside. However, today there was a clear shift out of small caps and into mega caps. Although I believe small caps will perform well in the coming weeks, they will not lead as they did in the last two weeks. This is because funds were heavily short on these stocks and had to cover as they began to be bought. Summertime is a prime time when funds liquidate these heavily shorted stocks, causing a squeeze. More often than not, this is a recurring theme going into summer each year. Overall, my thesis for this week is spot on, and I want to see the upside continue, breaking highs above 5700 to target my main goal of 6000 on the Emini.

Additionally, I have added two swing trades inside the chat, which are exclusive to subscribers, so I will not comment on the tickers until the positions are closed.

When looking at the intraday levels, they worked out perfectly. The Emini long level was the low of the day, with the target being the high of the day. The Nasdaq, on the other hand, fell short of reaching the long target but still posted strong upside. This is due to tech firing a strong rally at the open but setting the high for the remainder of the session.

Here is the chart for most of the levels posted last night. I will post levels on these stocks once again. Green lines are long levels, and red lines are short levels. There is plenty of opportunity to capitalize on these using this week's expiration contracts. Here are the charts from today:

Time to move on to my analysis for tomorrow!