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Good Tuesday morning!
Bulls continue to absolutely dominate the markets as the S&P and NDX made new all time highs again!!! And as usual, it is mainly thanks to 7 names (although I know there are other that are also doing well....i.e COST and AVGO just to name a few) please check this out as confirmation as to what I am saying:
"Magnificent 7 stocks have officially exceeded $15 trillion in combined market cap for the 1st time ever.
The group's combined market cap now equals over 50% of US GDP.
In just 2 months the Magnificent 7's value has surged by a whopping $2 trillion.
The Magnificent 7 stocks have rallied by over 60% over the last 12 months compared to only a 20% gain in the other 493 S&P 500 stocks.
Combined they reflect over a record 30% of the entire S&P 500.
Big tech is getting even bigger."
I mean THAT IS IMPRESSIVE!!!! Money continues to pour into these names, and no one is sure when this will stop, but it will at some point. In the meantime try not to fight the tape. Shorts got absolutely smoked yesterday, however the structure of the market is getting "toppy". We had a large "spike" yesterday on the way up and this means not a lot of time and not a lot of volume was spent at those levels within the spike. This tells us that in the event of a liquidation break those areas can "fill" (or go down) very quickly as there is not a lot of support or confidence at those levels. Please pay attention to the key levels listed and the profile pic below.
Futures are relatively flat this morning and overnight inventory is mixed. We just had some economic data released (Retail Sales) and things got a bit choppy but seem to be calming down a bit. We are also inside of prior days range again so it will be a coin toss when the opening bell rings.
Please Note: Futures rolled over today from the M contract to the U contract so prices may seem out of whack. This happens on the 3rd Friday of every quarter...March, June, September and December so be aware. The rollover actually occurs on the Monday preceding the 3rd Friday and we trade the new U contract Tuesday morning. ALSO, the markets will be closed tomorrow for the Juneteenth holiday so we will be right back at it Thursday morning!
SBUX: Finally starting to move again so we played it well and held our stops after some minor adjustments. We are keeping stop @ $79.
TSLA: Holding and also had a great day yesterday. We are going to sell more calls for this Friday but we have not as of yet.
VPOC Update: A new VPOC was added yesterday @ 5489.50 and we now have 24 VPOC's below current price levels.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5560 - 5570
Key Level: 5540 Top of Spike
downside target is: 5515 - 5510
/NQ upside target is: 20,280 - 20,320
Key Level: 20,155 Top of Spike
downside target is : 20,090 - 20,050
RTY upside target is: 2037 - 2041
downside target is: 2005 - 2000
Economic Data:
Retail Sales @ 8:30 AM EST
Industrial Production @ 9:15 AM EST
Business Inventories @ 10:00 AM EST
More Color.......
/ES - Key Demand at $5520-5527 then below that at $5510
1. Sellers trapped above $5510 looking to play long targeting $5530
2. Buyers trapped below $5520 looking to play short targeting $5505
SPY - Demand $543-544 with Supply above at 548
1. A breakdown below $543 and holding after a pullback I will look to play
short targeting $541 then$ 539
2. Sellers trapped above $544 I will look to play long off a break and retest
targeting $545
SPX Key Demand at $5439-56 the below that at $5400-10
1. A breakdown below $5400 and holding below $5400 after retest I will look to play short targeting $5385
2. A bounce above $5410 I will look to play long targeting $5430 then $5440
/NQ Demand at $20085 then below that at $19908
1. Sellers trapped above $20085 looking to play long targeting $20100
2. A breakdown below $19908 and hold after a pullback I will look to play
short targeting $19880
QQQ Key Demand at $484 then at $479
1. Sellers trapped above $484 pre market low looking to play long off a
break and retest targeting $485 then new HOD
2. Buyers trapped below $483 playing short after a break and retest
targeting $481
AMD Supply at $159 -160 with previous demand below at $152-154
1. Buyers trapped below $160 looking to play short off a break and retest
from $159 targeting $157 then $155
2. Sellers trapped above $152 looking to play long from $153 targeting $155
SOXL - Key demand at $62 then below that at $57-58
1. Sellers trapped above $62 looking to play long off a bounce targeting
$63.50 then new HOD
As ALWAYS, have your stops & targets in place and have a great day!!!
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