Daily Plan 9.12.23
Markets Close Higher in Line with Expectations - What’s Next?
Good evening, dear readers!
Once again, we witnessed an impressive achievement as both the Emini and Nasdaq surpassed my long targets. This was further bolstered by a timely message I shared on Platform X, which anticipated a continued upward trend. This indeed played out in our favor, making it an extraordinary trading session.
The Emini commenced trading right at my predicted target before finding a sturdy support just a tad below, offering a substantial upside of nearly 40 handles. In parallel, the Nasdaq rewarded us with an additional 200 handle move, which is exactly the kind of momentum one would want to harness, especially when considering risk positions before the impending CPI and PPI reports later this week.
While Oil and Gold didn't exactly meet my targets, they stabilized after the significant fluctuations observed last week.
Nvidia took a downturn early in the session, recording a drop of nearly 60 handles from the point when I sounded the alert at the 500 Leap Puts mark. This decision has been quite profitable, echoing similar success stories with other stocks I've highlighted. For example, Advanced Micro Devices has faced considerable pressure recently, retracing to its previous lows. Interestingly, despite their strong opening, these stocks revealed significant vulnerabilities, precisely when I was scouting for short-selling opportunities.
In other news, LLY is inching closer to my 600 swing target, marking yet another All-Time High (ATH) session. This development is particularly noteworthy, given the prevailing sentiment favoring long positions on MRNA and PFE due to potential COVID-related restrictions. Unfortunately, these stocks haven't performed optimally for many, and I'm relieved I chose to steer clear.
Tesla dominated today's session with an impressive surge, boasting more than 20 handles above the long level I highlighted just yesterday. The contracts for this are significantly up, and there's optimism about more positive news following the CPI report later this week. Although Elon Musk has often been under scrutiny, it's essential to remember that as he distances himself from Platform X, investors might rally behind him, applauding his renewed focus on Tesla.
Meanwhile, Apple has made a strong comeback from its previous lows. With the highly anticipated Apple Event scheduled for tomorrow, ensure you tune in post-close to get insights into the company's future roadmap. I'll share my insights in tomorrow's newsletter, ensuring you're well-informed about any developments that might impact stock prices.
Both WMT and DLR concluded the day on a promising note, and based on my analysis in the weekly post “Flow State #43,” I anticipate their upward trajectory to persist.
So far, the week has unfolded precisely as I had envisaged. Let’s hope this momentum persists into tomorrow's session. Remember, in the absence of major events and earnings releases, expecting substantial market movements might be unrealistic. However, bullish traders would undoubtedly be keen to observe support at the critical levels that I'll detail below for both Emini and Nasdaq. Breaching these levels might trigger significant sell-offs, so stay alert!
Today, we observed a slight uptick in consumer inflation expectations, registering a 0.1% increase from the last update. With consumers bracing for a potential dip following the CPI release, it's noteworthy that we've witnessed consistently improving data throughout the year.
The looming question remains: Will consumers, anticipating a downturn, find themselves caught off-guard by the assertive bulls?