Good evening, readers!
Today, both indices and individual stocks experienced anticipated volatility, especially after breaking below the pivotal point utilized yesterday. Take the Emini as an example: it surged above its long level, signaling a robust but ephemeral upward momentum. However, this momentum was short-lived, as it soon plunged, selling right through the short level and establishing the LOD at the designated short target.
The detailed levels were outlined as follows:
ES Long 4531 > 4555 / Short 4526 > 4507
Gold faced a significant setback today, plummeting 18 handles from its short level, ultimately setting the LOD at 1930. This movement showcased a spectacular short setup.
Oil, in contrast, surged significantly, reaching as high as 89, and once again surpassing its target. This bullish trend in oil has been consistent and aligns with the trajectory I've predicted for several weeks.
LLY reached a commendable milestone, hitting my 600 swing target, marking a rise of 150 handles from its initial 450 mark.
AAPL encountered turbulence, plummeting 5 handles from 180, which had a domino effect, pulling down other tech stocks on my watchlist that I've highlighted with specific levels. Particularly, NVDA showed vulnerability among the semiconductors, making it an attractive short from the 500 level. Other tech giants like GOOGL, AMZN, MSFT, and META faced substantial selling pressure, especially during the Apple event, carving out new lows.
Diving Deeper into the Apple Event
This event was, to put it mildly, underwhelming. Innovation was notably absent; the release of a new iPhone was anticipated, but upgrades to the Apple Watch seemed hardly compelling for current owners to consider a switch. The double-tap mechanism and widget updates might enhance screen utilization, but it falls short of creating any significant buzz among consumers. Consequently, AAPL shares took a hit, mirroring the typical negative market reaction we've come to expect during Apple events. However, history has shown us that the stock usually sees a sharp recovery in the following weeks. We'll keep this trend in mind as we gauge the broader market's reaction tomorrow.
One noticeable gap in the event's offerings was the lack of any groundbreaking product that would have customers rushing for an upgrade. The anticipation surrounding the rumored iCar remains, but with scant details available, it remains a distant hope. Given the underwhelming new releases, a potential slump in sales seems likely. Although today's event highlighted significant strides in reducing the carbon footprint, the average consumer's primary focus when selecting a phone is unlikely to be its environmental impact.
Switching gears to BABA, it followed the script I mentioned in yesterday's newsletter perfectly. The stock made an impressive rally right up to my designated level, only to experience a sharp decline to the session's lows. This movement underscores the precision and reliability of the volume profile in predicting price trajectories.
BABA is a ticker that has recently caught my attention, and I'll be monitoring it closely for potential declines, especially if the price can sustain below the 90 mark. From a swing trading perspective, we're observing a break below some critical value areas. Although these areas are relatively small, they are punctuated by pronounced low volume nodes, which could exacerbate the selling momentum we've witnessed in the recent weeks. I've set my downward target at 84. As of now, the stock is trading at 88.
Everyone is likely aware by now that the CPI will be released tomorrow before the market opens. Consequently, unless you're already in swing trades or you deal with futures, your primary focus will probably be trading at the open. With that in mind, I'm keen on identifying continuation moves through my designated levels. Given the anticipation surrounding the CPI release, it's probable that some of these levels will be breached even before the opening bell rings. It's crucial, therefore, to be well-prepared and to stay vigilant, ensuring we can capitalize on any potential opportunities that arise in the wake of the data release.
CPI Bullish: