Daily Plan 9.1.23
Markets Close Higher in Line with Expectations - What’s Next?
Good evening, readers!
Markets will be closed on Monday for Labor Day. I wish you all a blessed three-day weekend!
It was yet another phenomenal session, starting with the Nasdaq setting the OVN low at 15460 twice, directly off my long level. Early in the session, the rally continued higher, establishing resistance at my 15580 target, which resulted in the market selling down multiple times. In the Cash Session, the Emini bounced right off my long level. Oil posted another strong session, pushing to new swing highs, causing distress for those dealing with tighter financial conditions. I anticipate this might lead to increases in the CPI expectations, and this isn't priced in yet. Tomorrow, we have the NFP and PMI releases. I'll provide my insights on these in the "Events" section below. Please refer below for the levels used in yesterday's session that captured all the rallies. Meta experienced a remarkable bounce off the long level, which was the LOD, and then later closed the session almost exactly at this price, to the tick.
ES Long 4516 > 4550
NQ Long 15460 > 15580
CL Long 81.33 > 82.44
Here are the results for the rest of the plan:
Google: +2 handles
Advanced Micro Devices: +2 handles
Meta: +6 handles
Apple: +2 handles
Nvidia: +9 handles
Microsoft: +3 handles
Tesla: +7 handles
Amazon: +5 handles
Contracts for all these stocks experienced significant movement, surging by several hundred percentage points. Notably, Meta, Tesla and Amazon maintained their upward trajectory seeing large % moves in the option side.
This was from yesterday session outlook:
I expect to see further upside, provided we hold approximately halfway between today's cash session's low and high. If we can maintain this level, I anticipate the upward trend will persist. However, if we dip below this range and approach the previous day's lows, then we might witness a test of the current Value Area Low for both Emini and Nasdaq.
Sector Performance (Previous Session)
XLK - Technology: The Technology sector saw a modest rise of +0.02%, indicating slight market optimism towards tech-related stocks and companies.
XLY - Consumer Discretionary: The Consumer Discretionary sector, which includes companies related to non-essential goods and services, experienced a positive growth of +0.21%, suggesting a somewhat favorable consumer sentiment towards luxury or non-necessities.
XLE - Energy: The Energy sector, encompassing oil, gas, and renewable energy companies, saw a minor decrease of -0.01%, showcasing some stability in global energy dynamics despite being in the negative.
XLC - Communications: The Communications sector, covering media, entertainment, and telecommunications companies, took a hit with a dip of -0.31%, hinting at challenges faced by these industries.
XLP - Consumer Staples: The Consumer Staples sector, which involves companies related to essential products like food, beverages, and household items, witnessed a decline of -0.18%, suggesting a slight decrease in demand for necessities.
XLB - Materials: The Materials sector, focusing on businesses in the chemical, construction materials, and mining industries, declined by -0.20%, indicating some concerns related to raw materials.
XLF - Financials: The Financials sector, which includes banks, insurance, and capital market firms, declined by -0.48%, perhaps indicating investor apprehension over economic and interest rate trends.
XLI - Industrial: The Industrial sector, encompassing businesses related to machinery, manufacturing, and infrastructure, took a hit by -0.65%, suggesting challenges in the production environment.
XLRE - Real Estate: The Real Estate sector experienced a dip of -0.72%, pointing to lowered confidence in property and real estate investments during this period.
XLV - Health Care: The Health Care sector, covering pharmaceuticals, biotechnology, and healthcare providers, faced a significant decline of -1.11%, indicating possible market concerns related to healthcare dynamics or regulations.
XLU - Utilities: The Utilities sector, representing businesses in the electricity, gas, and water supply industries, suffered the most significant decrease of -1.24%, suggesting potential shifts in demand or regulatory challenges.