|
Good Thursday morning!
NVDA Day did not disappoint!!!! The company delivered another strong quarter with a beat and raise well above most analyst's expectations and traders and investors are now calling it the "New Industrial Revolution"! NVDA also announced a 10:1 stock split.
Riding the back of NVDA this morning, there is a huge gap higher in the futures with the SPX and NASDAQ breaking into new all time highs once again. Everything will be about the "fade" or lack thereof! As I mentioned yesterday, the quadruple top was just asking to be broken and that has happened in a big way today. With such a large gap and overnight inventory 100% net long, there is a decent chance of moving lower to balance out the skewed inventory, however, sometimes the markets will hold and just digest the gap/
As you can see in the profile pic below, we are now well above that large 4 day balance area and quadruple top. Being that we are in "clear air" up here, there is nothing on the charts "to the left" we can look at as far as where traders and investors sold before. This is brand new territory!
The one strategy we use is watching the overnight high and the one minute low for a fade or short lower. When the market opens, if price takes out the overnight high, currently at 5368.25, then falls back below it, then that is the short with a stop above the overnight high. If price does not take out the overnight high and then takes out the 1 minute low, then that is the short with the stop above the 1 minute high. Watch closely for continuation and move stop to breakeven as soon as possible if the market does follow through and heads lower. Trail stops on the way down. If there is a bigger move lower, then target gap fill to yesterdays high and then the POC!
SBUX: Showed great strength once again yesterday and we added more at $79. Gap fill to the April 30th lows is the target now.
AMD Still holding and will add more this morning as NVDA has all chip stocks flying!
VPOC Update: No new VPOC's added yesterday. We still have 22 VPOC's below current price levels and strong probabilities we add another one below today although if there is a pullback the POC @ 5342 is a definite target!
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5350 - 5355
Key Levels: 5379 Prior highs and quadruple top then 5342 POC
downside target is: 5320 - 5310
/NQ upside target is: 18.895 - 18,925
Key Level: 18,840 Prior high
downside target is : 18,725 - 18,700
/RTY upside target is: 2095- 2100
downside target is: 2075 - 2070
Economic Data:
Jobless Claims @ 8:30 AM EST
PMI Composite Flash Index @ 9:45 AM EST
New Home Sales @ 10:00 AM EST
Natural Gas Inventories @ 10:30 AM EST
More Color.......
/ES - Key demand at $5310 with Supply above at $5362.5
1. Sellers trapped above $5310 I want to be long, a break and retest
targeting $5320 then $5333
SPY - Key Demand $529 then Supply flipped to Demand at $531
1. Sell off at the open where buyers are trapped above $529 looking to play
long targeting $533. If price breaks under $527 and holds under $528
after a pullback I will look to play short targeting $524
SPX Key Demand at $5280 - 5295 with Supply at $5325
1. Sellers trapped after a bounce above $5300 looking to play long target
$5315
1. A breakdown below $5280 and retest I will look to play short targeting
$5270 then $5257
/NQ Key Demand at $18425-60 and $18635 with Supply flipped to demand at recent HOD $18800
1. Sellers trapped above $18800 looking to play long off a break and retest
targeting HOD
QQQ Key Demand at $450 and $445
1. Sellers trapped about $450 looking to parlay a break and retest from $451
targeting $455 then new HOD
2. I can not be looking to play long without a breakdown below $440
AMD Key Demand at $ 162 and $165
1. Only interested in longs after a breakdown fails below $165 or if Supply
flips to Demand after a break out above and retest from $169-170 targeting
new HOD
As ALWAYS, have your stops & targets in place!!!
Have a great trading day!
| 
