Daily Plan 9.28.23

Markets Close Unchanged - What’s Next?

Good evening, readers!

Micron's earnings turned out to be in our favor, just like Costco, making successful earnings plays two out of two times this week. We still have three more opportunities left this week, so be sure to check out Flow State #45 for a detailed analysis.

The Emini and Nasdaq experienced another selloff, aligning perfectly with my expectations. However, the move in both the Emini and Nasdaq fell just short of my target. We witnessed a rebound occurring only 3 handles below my initial short target of 4280, which then offered a 50-handle selling opportunity down from my short level at 4330, marking the session's highs. Notably, the Nasdaq rebounded directly off the key Point of Control (POC), a level I highlighted weeks ago as a significant factor in the Emini as well. It was an exhilarating session, particularly for Gold and Oil enthusiasts.

Speaking of Gold, we saw a rapid collapse from my short level, providing a 30-handle downturn and breaking below the crucial 1900 support level. It was evident that a volatility event was imminent, and that's precisely what transpired in today's session. Shifting to Oil, we witnessed a 400-point rally above my level, which coincided with the Overnight (OVN) lows, creating a colossal session and raising substantial concerns for the Federal Reserve. Unfortunately, the biggest losers in this scenario will be consumers who are bound to feel the pinch of soaring gas prices. As of the time of this post, the rally showed no signs of slowing down, with Oil surging by over 5 points in just 24 hours. We need to keep a close eye on this development for the upcoming Consumer Price Index (CPI) and Producer Price Index (PPI) reports in the coming weeks. It's unlikely that Powell will make remarks on this matter until those reports are released. For futures traders, both Gold and Oil have been standout performers in recent weeks, and it appears that this party is only just beginning.

Turning our attention to the stock market, we witnessed a significant continuation of selling pressure in the Flow State stocks that were highlighted on Sunday. McDonald's (MCD) has already reached my downside target of 263. Meanwhile, Home Depot (HD), American Tower Corporation (AMT), Starbucks (SBUX), Netflix (NFLX), and Broadcom (AVGO) have all continued to slide towards new lows for the week, edging closer to my specified targets. If the indices fail once again to breach the key levels mentioned tonight, we might anticipate further downside extensions throughout the remainder of the week.

Now, let's turn our attention to my analysis for tomorrow's session!