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Good morning!
Yep....Groundhog Day continues. I feel like I keep saying the same thing over and over and over. Bulls are still in complete control as markets keep breaking to new all time highs, day after day, week after week. It is starting to feel so unnatural but you cannot fight something like this in trading or investing. When the powers to be keep plowing money into a few key names, it is enough to keep people chasing the darling stocks as well and follow suit, as well as a bit of a bit of a self-fulfilling prophecy!
Futures are higher this morning and overnight inventory is 100% net long. It is also a true gap so it is a good set up to look for a fade lower, however, they already started selling off of the overnight highs so inventory is starting to "balance out" already. As you can see in the key levels and profile pic below, this gap into new highs are well above prior highs so the question we need to ask ourselves is...will the buyers be able to sustain such dizzying heights?!?! As long as we are over the prior highs, then the bulls are still winning the game. If there is going to be any selling into this market today, (and I am not saying there is) we would look for breaks down below 5575 then target 5563, then 5554 and so on. If there is no break lower, then things remain status quo.
SBUX: Faltered again but still profitable. We are moving the stop higher from $79 to $79.50.
TSLA: Holding and we sold calls on Tuesday at the $192.50 strike for .71 cents. It looks like there is a good chance they expire worthless. Putting our stop @ $180.
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: 5575 - 5585
Key Level: 5554 POC and 1/2 Back
downside target is: 5543 - 5535
/NQ upside target is: 20,320 - 20,340
Key Level: 20,271 Prior All Time Highs
downside target is : 20,130 - 20,110
RTY upside target is: 2067 - 2071
downside target is: 2040 - 2034
Economic Data:
Housing Starts and Building Permits @ 8:30 AM EST
Jobless Claims @ 8:30 AM EST
Philly Fed Manufacturing Index @ 8:30 AM EST
Crude Inventories @ 11:00 AM EST
More Color.......
/ES - Key Demand at $5575-5580 then below that at $5565
1. Sellers trapped above $5575 looking to play long targeting $5588
2. Buyers trapped below $5565 looking to play short targeting $5545
SPY - Demand $ 548 then below that at $543-545
1. A breakdown below $548 and holding after a pullback I will look to play
short targeting $546 then $545
2. Sellers trapped above $547 I will look to play long off a break and retest
from $548 targeting $550
SPX Key Demand at $5470-75 with Supply above at $5490
1. A breakdown below $5470 and holding below after retest I will look to play short targeting $5450
2. A bounce above $5470 I will look to play long targeting $5485 then new
HOD
/NQ Demand at $20255 then below that at $20220
1. Sellers trapped above $20220 looking to play long targeting $20250
QQQ Key Demand at $485-486
1. Sellers trapped above $485 looking to play long off a break and retest
targeting $487 then new HOD
2. Buyers trapped below $484 playing short after a break and retest
targeting $481
TSLA Gap up Demand at $184
1. Sellers trapped above $184 looking to play long targeting $186 then $187
As ALWAYS, have your stops & targets in place and have a great day!!!
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