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Good Monday morning!
Futures are mixed this morning and overnight inventory is also mixed. The bulls are still in control, however, there seems to be a new undertone forming in that certain stocks, which are very overbought, are having some "chips" being taken off the table. I mean can you blame anyone for that?
The Magnificent Seven (or 3 or 4 of them anyway) have been incredibly bullish with seemingly no end in sight, but this kind of game is nothing new in the stock market....this cannot and will not last forever! As I have been saying for a long time you do not want to fight this tape but there will be signals when the tide starts to turn so stay tuned!! Right now, as long as the S&P stays above 5440 and the NDX stays above 19,580, then the bulls are still very much in control. When these levels start to break, look out for lower prices!
As you can see in the key levels section and profile pic below, we are right at a key zone around 5533 which is the POC & 1/2 back from Friday. Use this as your line in the sand....long above or short below. The overnight range is almost identical to Fridays regular trading session so this has shown us very responsive trade. If/when they break look for our target levels next.
SBUX: Sold @ &79.50 as it hit our stop level. We may revisit the trade in the near future.
TSLA: Holding and the calls we sold calls on Tuesday at the $192.50 strike for .71 cents have expired worthless on Friday. I will be looking to sell upside calls again for this Friday's expiration. And by the way, selling credit is a great way to bring in money as the stock you may be holding is going sideways!
VPOC Update: No new VPOC's on Tuesday so we still have 24 VPOC's below current price levels.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5560
Key Level: 5533 POC & 1/2 Back
downside target is: 5510 - 5505
/NQ upside target is: 20,105 - 20,125
Key Level: 19,993 - 19,989 POC & 1/2 Back
downside target is : 19,895 - 19,875
RTY upside target is: 2057 - 2062
downside target is: 2029 - 2026
Economic Data: NO ECONOMIC DATA TODAY
More Color.......
As ALWAYS, have your stops & targets in place and have a great day!!!
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