|
Good morning everyone!
We are still alive and well on Fantasy Island as there does not seem to be a seller on planet earth! (believe me I've looked)
The DOW, SPX and NASDAQ 100 all hit new record highs again so it seems like the current trend will continue for the foreseeable future, and as mentioned before, do not try to fight this as shorts have been getting killed day after day after day.
While there seems to be no end in sight for this currently rally, believe it or not, a few stocks are peaking my interest to the short side....META and CMG to name a few. I am still going to be patient, but IF we ever got a liquidation break and sellers showed up, a prime example would be for me to see META break below yesterdays lows....$381.16 and at that point I would short the stock (stop would be over yesterdays high). If the stock never breaks that level then obviously I would not short it. Also of interest, CMG doubled topped around $2350 so that is also on my radar and I would be looking for the same break below prior days low...$2316. Stop would be over all time highs.
Futures are mostly higher this morning (only DOW futures are slightly lower) with overnight inventory mixed . We are actually opening up inside of prior days range and after the huge moves we had last week, a day like yesterday is considered "balance" as the market is now digesting the moves and as long as we don't break hard and close below prior days lows with value building lower, this will continue to be a very bullish sign! Please see the profile pic below as I have marked off some very key levels! Basically as long as we stay above the noted pink lines, then the bears are still in serious hibernation!!
And by the way, because of the gap up and hold, we now stand with 15 untested points of control below us. I have never seen this many in my trading career.
/ES upside target is: 4900-4910
downside target is: 4865-55
/NQ upside target is: 17,605-625
downside target is: 17,360-380
*/RTY upside target is: 2005-07
downside target is: 1981-79
Economic Data Today: Very Light Today
Richmond Fed Manufacturing Index @ 10:00 AM EST
More Color.......
/ES - Key Demand at $4870 -$4880 with Supply above at $4890- $4900. Ideally I want to see one of these areas flip intraday with a breakout ( Demand Flipped to Supply)
- If Bulls can defend and hold $4860 after a sell off and pullback I will look long
- If price finds support above $4885 I will look to see if Supply flips to Demand
- Buyers trapped at the open with now follow through after the new HOD. Playing
a break and retest from $4890 short targeting $4875 first then Key Demand
SPY - Consolidating between Supply and Demand. Below $482 can leave us room to
the downside. Key Demand at $482-483 with Supply at $$84-$485 with HOD
- Sellers at the open pushing price below $482 to play short target $480.88
- Buyers at the open trapped inside supply after new HOD. Resistance formed
below HOD on pullback at $485 to play short targeting $484.20 then $483
- Sellers a at the open with Bulls Defending $482 to play a break and retest long
SPX - Key Demand is at a Gap fill from last week $4840-$4850 , Supply at $4860-70
- Below demand leaves room to the downside where new demand isn't until $4800
- I would like to see either buyers or sellers trapped at the open in one of these
zones to go with the trend until price breaks out. If price breaks below $4840 it
must then hold as Resistance during a pullback in order to play short
/NQ - Consolidating below Supply at $17590-17540. Key Demand is at $17200
QQQ - Key Demand at $420-$422 with Supply at $425-424. If price can break below
Demand and hold I would like to play short targeting $419.45 , $418.50 then $417
- If price is supported above $420 and holds I will look to play long
TSLA Key Supply remains at $218-220 with Demand below at $206-$208
AMD Key Demand is at $162 - 164 with price tracing back down . If it holds as support I
would like to play long targeting $166 first then $168. Until price breaks below $158 and
holds I will view this as Bullish with sell offs getting bought up.
Have a great trading day!
| 
