Flow State #48
Welcome back everyone!
Previous Week Recap
The Emini and Nasdaq closed slightly higher after experiencing a sharp sell-off from the late-week highs established on Thursday. Many traders found themselves caught off guard by the robust upward move at the beginning of the week on Monday, followed by a dramatic downturn on Thursday and Friday. Remarkably, all three sessions ultimately played out in our favor. On Monday, I confidently predicted a strong continuation to the upside, and by Friday, I issued a crystal-clear warning of an impending sell-off. This warning came just an hour before stocks and indices began their precipitous descent, culminating in a challenging week's end. Even the commodities market saw significant action, with Gold embarking on a 50-point rally from my key intraday level, and Oil closing more than 3 points higher than my suggested long position. Additionally, of the six stocks I provided earnings analysis for this past week, four turned out to be profitable ventures for us.
Tesla, Nvidia, and Meta made headlines with their enormous market-shaking movements, resulting in two out of the three boasting over 1,000% returns on contracts, while the third nearly touched 500%. Such unreal levels of volatility have been witnessed, and I take pride in asserting that Volume Profile once again furnished both our readers and myself with opportunities to capitalize on these dramatic swings. The later-week sell-off brought all my tech short swings back into profitability, and I believe we are poised for some highly lucrative trades in the weeks ahead. Some stocks are still hovering near the short levels, so I strongly encourage you to check the spreadsheet located within the "Momentum Gallery" section to ensure you don't miss out on these opportunities. As most of you are already aware, Volume Profile can be effectively applied to both intraday and swing trading, aligning perfectly with the focus of this newsletter.
In the Flow State series, we delve into the current data driving our economy, along with the upcoming releases that lie ahead. In the following sections, I will break down the Federal Reserve's Balance Sheet, GDP figures, Consumer Spending trends, Personal Income statistics, Government Spending patterns, CPI (Consumer Price Index), PCE (Personal Consumption Expenditures), Interest Rates, FOMC (Federal Open Market Committee) Projections, Retail Sales data, Building Permits, Housing Starts, Existing Home Sales, and Industrial Production numbers. I understand it's quite a mouthful, but I'll simplify what these releases signify and how they might shape our future. There will also be another deep dive into this weeks earnings. So, stay tuned!